As the crypto market gears up for its anticipated bull phase, Ethereum’s main net transactions risk becoming prohibitively expensive—a situation that resonates with those who might have missed the early Bitcoin train at a mere $1 valuation. However, the blockchain realm is a realm of constant innovation. Recognizing the need for swifter and more cost-effective transactions, numerous projects have made substantial headway in constructing robust and functional Layer 2 networks. This article explores the top layer 2 blockchain tokens for 2023, weighing factors like tokenomics, network activity, market cap, and technology.
Curious About Layer 2 in Blockchain? Here’s the Lowdown
In a dynamic landscape where blockchain technology evolves ceaselessly, Layer 2 projects emerge as game-changers. These innovations hold the potential to reshape how transactions are conducted on the blockchain, addressing the scalability and speed limitations of their Layer 1 counterparts. Layer 2 projects present a visionary solution by introducing secondary frameworks that operate atop existing blockchain networks, amplifying their capabilities without compromising on the core principles of security and decentralization.
Top Five Picks for Layer 2 Blockchain Investment
Arbitrum is an extensively adopted blockchain, producing daily revenues surpassing $100K, and boasting an engaged user base exceeding 120K on a daily basis. The native token (ARB), introduced in March 2023, assumes the role of the network’s governance mechanism. Currently, the initiative commands a market capitalization of $1.2 billion.
As the prominent scaling solution for Ethereum, it harnesses the network’s strong influence, securing over $1.17 billion in total value locked (TVL) and welcoming 350K active daily users. Polygon has recently introduced Polygon zkEVM, an advanced security-focused secondary chain. The native token (MATIC) currently holds a substantial market cap of $5.3 billion.
A firmly established blockchain harnesses zkRollup innovation for heightened security and decentralization. At present, Loopering’s total value locked (TVL) amounts to $75 million, accompanied by a market capitalization of $229 million. As per its official website, the latest version can process up to 2,025 transactions per second (TPS).
Crafted to lay the groundwork for the evolving gaming realm, Immutable X stands tall with a robust total value locked (TVL) of $28.9 million and an impressive market capitalization of $662.05 million. A notable addition to its repertoire is a user-friendly automated wallet creation tool, strategically aimed at simplifying the onboarding process for a broader audience within the dynamic landscape of crypto gaming. This innovation is poised to usher in a new era of accessibility and participation in the domain of blockchain-based gaming experiences.
Optimism has emerged as a standout performer, boasting a thriving community of over 100K active daily users and consistently generating $200K in daily revenue. Notably, the project has garnered attention from notable industry protocols, including Worldcoin by ChatGPT Co-Founder Sam Altman, and Base Protocol, a recently introduced Layer 2 solution by Coinbase. This impressive traction underscores Optimism’s growing prominence and appeal within the blockchain ecosystem.