There are three cryptocurrencies value analyzing amongst these associated to initiatives primarily based on the second layer or layer 2. These are the most effective.
Greatest layer 2 cryptocurrencies
The primary one is definitely Polygon, the one layer 2 cryptocurrency that entered the highest 15 of these with the best market capitalization.
With its $17 billion, it capitalizes greater than CRO, Algorand, and Litecoin.
It’s the biggest layer 2 undertaking on the planet for Ethereum, and its significance has grown tremendously simply throughout 2021.
Suffice it to say that its native cryptocurrency, MATIC, had elevated its worth by an unbelievable 13,600% within the final 12 months, notably because of the resounding leap in the beginning of the yr, when it went from $0.018 to $2.45 in simply over 4 and a half months.
The very fact is that Ethereum, in the mean time, is by far the blockchain that wants layer 2 options probably the most to scale and particularly to scale back excessive transaction prices.
Polygon serves this very goal, a lot in order that an increasing number of builders have determined to make use of its know-how to permit their apps on Ethereum to scale over the course of the yr.
For instance, it’s utilized by Aave, Curve Finance, and QuickSwap, and in whole, there are as many as 130 DeFi protocols constructed on Polygon, with a complete TVL of over $4 billion.
Certainly, based on DeFi Llama’s knowledge, for TVL, it has already climbed to seventh place general, forward of historic blockchains like Tron or Waves.
It has additionally signed some necessary partnerships in the course of the yr, successfully changing into the platform of alternative for these constructing initiatives primarily based on the Ethereum blockchain that want to have the ability to scale at an affordable price.
In different phrases, it was its adoption that drove MATIC’s worth development, in addition to hypothesis.
The second layer 2 cryptocurrency that must be talked about is Loopring.
It is a comparatively completely different platform than Polygon, as it’s primarily used to handle a decentralized alternate.
The truth is, the aim of Loopring is to permit customers to alternate cryptocurrency belongings in a decentralized means with out going via the Ethereum blockchain. This avoids the slowness and prices of DEXs that run instantly on the Ethereum blockchain.
Loopring has its personal native token, LRC, with solely $2.5 billion market capitalization.
All through 2021, its worth had elevated by 1000%, thanks largely to the November spike, when it went from $0.4 to $3.2 in simply two weeks.
Nonetheless, we must also point out Immutable X as a result of it’s a undertaking associated to the NFT world performing very effectively.
Immutable X is the biggest layer 2 platform for NFTs on Ethereum, making it a significant success.
It primarily serves to permit holders of NFTs on Ethereum to maneuver them from one pockets to a different, paying virtually zero charges and with virtually instant transactions.
Its native token is known as IMX, and it has a market capitalization of simply over $1 billion.
On the cryptocurrency markets, this token has existed for a really brief time, so it has not benefited from the spikes of the earlier months. Nonetheless, it’s value maintaining a tally of it as a result of it might reserve surprises sooner or later.
The way forward for layer 2
These three-layer 2 cryptocurrencies come up from actual wants and suggest concrete options to issues that may hardly be solved in some other means within the brief time period.
So if in the long run it’s arduous to think about how they may evolve, within the medium time period, nonetheless, they appear destined to play a key position.