As the cryptocurrency market develops, more projects launch with unique tokens, focusing on scalability among other goals.
What Are Layer 2 Tokens?
Layer 2 tokens are cryptocurrencies associated with projects that enhance blockchain efficiency. Early blockchains like Bitcoin and Ethereum have slower speeds and high fees. Layer 2 solutions address these with scalability and cost-efficiency, facilitating faster transactions. Built on Layer 1 blockchains, they leverage their strengths to address scalability and interoperability issues. Many Layer 2 blockchains on Ethereum offer a scalable and secure platform for transactions.
Best Layer 2 Tokens to Watch in 2024
Top Layer 2 tokens include Mantle (MNT), Arbitrum (ARB), Immutable (IMX), Optimism (OP), Starknet (STRK), Polygon (MATIC), and ZKsync (ZK).
- Mantle (MNT) is built on Ethereum using Optimistic Rollup technology. - Arbitrum (ARB) is a widely used scaling solution in the Ethereum ecosystem. - Immutable (IMX) powers the Immutable Network, known for zero gas fees. - Optimism (OP) processes transactions off-chain using Optimistic Rollup. - Starknet (STRK) uses zk-rollups on Ethereum. - Polygon (MATIC) uses zkEVM rollup and PoS consensus. - ZKsync (ZK) offers an efficient transaction network on Ethereum.
Conclusion
Like other cryptocurrencies, Layer 2 tokens offer potential investment opportunities. However, thorough research is crucial for making informed decisions.
Layer 2 tokens continue to improve blockchain scalability and efficiency, making them an essential aspect for investors to monitor.
