As many of us are aware, the introduction of Layer 2 technology has brought about a significant enhancement in transaction speeds within the cryptocurrency space. This improvement not only accelerates transaction processing but also diminishes the associated network fees. This article is all about the top 7 layer 2 coins for 2024.
It wouldn’t be far-fetched to attribute part of crypto’s current success to the innovation of Layer 2 technology. Just imagine for a moment: if all cryptocurrencies were still solely reliant on Layer 1, with its sluggish transaction speeds and higher fees, the widespread adoption of crypto for everyday transactions might not have been as readily embraced.
Top 7 Layer- 2 Coins for 2024
L2, sometimes called an off-chain network, is like an upgrade built on top of an existing blockchain (Layer 1). Its main job is to tackle the issues with transaction speed and scalability that big Layer 1 networks often face. The community behind it is passionate about shaking up the industry and is constantly coming up with new ideas to take things to the next level.
1. Mantle (MNT)
Imagine Mantle Network as the powerhouse behind Ethereum’s expansion, crafted as the star player of the Mantle Ecosystem. It’s like the trusty engine that helps Ethereum handle a heavier load of transactions with ease. What’s neat about Mantle Network is its adaptability—it seamlessly integrates with the Ethereum Virtual Machine, the brains of Ethereum. Plus, its modular setup means different parts can be upgraded individually, keeping it in sync with the latest tech trends.
As the pioneer of DAO-spawned L2, Mantle Network is leading the charge towards wider adoption of technology governed by tokens.
MNT, short for Mantle Network Token, is the special currency used for:
– Covering those pesky gas fees
– Nurturing the ecosystem’s growth and prosperity
– Empowering the community to have a voice in shaping its future
2. Arbitrum (ARB)
Arbitrum functions as Ethereum’s turbocharger! Imagine upgrading from a regular car to a souped-up sports car – that’s the effect Arbitrum has on transactions. It accelerates them and reduces costs, all thanks to optimistic rollups, which ease the load on Ethereum’s main network. With Arbitrum, you can handle more transactions simultaneously without feeling the pinch of high fees.
But here’s the exciting part: Arbitrum introduces its own coin, ARB. It’s not your run-of-the-mill cryptocurrency; it’s akin to having a voice in the system’s operation. Think of it as membership in an exclusive club where you get to vote on crucial decisions. By holding ARB, you actively shape Arbitrum’s future – suggesting new features, supporting upgrades, and allocating funds. And guess what? The introduction of the Arbitrum DAO amplifies community influence, making it a democratic force in action!
3. Optimism (OP)
Think of Optimism as Ethereum’s trusty sidekick, quietly working behind the scenes to supercharge the blockchain experience. It’s like the engine purring under the hood, making Ethereum run smoother and faster with its ingenious optimistic rollups. While Ethereum takes the spotlight, Optimism is the unsung hero, tirelessly optimizing performance without stealing the show.
With an impressive $500 million in assets locked up, Optimism is the bustling heart of Ethereum’s universe. It’s where 97 vibrant protocols thrive, from heavyweights like Synthetix (SNX) for trading derivatives to the beloved Uniswap (UNI) decentralized exchange and the innovative Velodrome (VELO) automated market maker.
4. Immutable (IMX)
Immutable boldly steps onto the stage as Ethereum’s pioneering layer-two scaling solution dedicated to NFTs. Dissolving Ethereum’s pain points like sluggish scalability, clunky user interfaces, liquidity issues, and developer headaches, Immutable promises a transformative experience. Picture this: instant trades, boundless scalability, and NFT minting and trading sans gas fees, all without sacrificing security for users or assets. How’s that for a game-changer? Powered by STARK zk-rollups, a technology even Ethereum’s own Vitalik Buterin champions, Immutable is a beacon of hope for Ethereum’s NFT ecosystem.
IMX stands tall as the ERC-20 utility token at the heart of the protocol. Its significance spans three crucial roles: fees, staking, and governance. A noteworthy rule dictates that 20% of the protocol’s fees are payable exclusively in IMX. Furthermore, users can leverage IMX for staking, earning a proportionate slice of the network’s fees in return. But that’s not all – IMX holders wield power in governance decisions, exercising their voting rights to shape the protocol’s future. With a total supply capped at two billion tokens, IMX holds immense potential to drive the protocol’s growth and evolution.
5. Manta Network (MANTA)
Manta Network emerges as a versatile ecosystem tailored for web3. Within its realm, users wield the power to construct and launch a diverse array of Solidity-based decentralized applications (dApps). Manta offers a sophisticated technology stack, facilitating lightning-fast transaction speeds surpassing those of L1 solutions, coupled with reduced gas costs akin to L2 environments. With Manta, the possibilities are boundless, enabling developers to unlock new realms of innovation and efficiency in the web3 terrain.
6. dYdX (ethDYDX)
This perpetual exchange operating on Ethereum’s Layer 2 blockchain holds promising potential to enhance scalability and accommodate a vast number of users seamlessly. It prioritizes swift and secure withdrawals and deposits, coupled with robust anonymity features, ensuring users’ privacy and security are paramount. The Ethereum-based DYDX ($ethDYDX) serves as a governance token, granting the dYdX community authority over the dYdX Layer 2 Protocol established on Ethereum (“dYdX v3”). Currently, ethDYDX is in the process of migrating from Ethereum to the dYdX Chain.
7. Metis (METIS)
Metis steps onto the Ethereum stage as a true game-changer, offering up a Layer-2 solution that boldly tackles the blockchain trilemma. By deftly balancing decentralization, security, and scalability, it’s set to shake up how we engage with blockchain tech. But Metis isn’t content with just smoothing out the wrinkles of Ethereum’s past—it’s on a mission to mend its creaky bits, like slow speeds and hefty fees, making transactions a breeze and saving us some serious cash.
Yet, its ambitions reach far beyond patching up old wounds; Metis is all about empowering developers to craft and manage decentralized applications (dApps) with ease. And with its nifty integration of the Decentralized Autonomous Company (DAC) framework, it’s laying down the tracks for a seamless journey from the traditional web to the decentralized frontier.
