Top 7 Layer 2 Coins and Tokens to Keep an Eye on In 2024

As the cryptocurrency market develops, more new projects are launching with their individual tokens. These projects serve various purposes, and a popular use case is scalability. Highly scalable blockchains execute low-cost and fast transactions, and some of them are called Layer 2 solutions.

Since every Layer 2 project has its unique cryptocurrency, the market is saturated with numerous Layer 2 coins. This article highlights the top options to consider investing in this year.

What Are Layer 2 Tokens?

Layer 2 tokens are cryptocurrencies associated with projects built to enhance efficient blockchain operations. The earliest blockchains, like Bitcoin, Litecoin, and Ethereum, have relatively slow speeds and charge high fees. Layer 2 (L2) solutions stepped up to solve these problems with their highly scalable and affordable solutions that facilitate transactions faster.

However, it’s critical to note that these L2 solutions don’t exist on their own. They are built on top of other blockchains called Layer 1. That way, they can leverage the strengths of the blockchains they exist on to address the scalability and interoperability issues.

For instance, many Layer 2 blockchains exist on Ethereum. They leverage Ethereum’s security to provide their users with a more scalable and secure platform for transactions. This works using smart contracts on the primary blockchain, making communication and transaction execution easy and fast.

Best Layer 2 Coins to Watch in 2024

Now that you understand Layer 2 tokens and how they work, it’s important to note that they are available on exchanges for trading at any point. Similarly, interested people can invest in them in the conventional and decentralized finance (DeFi) market.

Here are the top Layer 2 blockchain solutions by market cap as of the time of writing this post.

Mantle (MNT)

Mantle is a Layer 2 scaling solution built on the Ethereum blockchain. The solution was developed in 2023 to address concerns around Ethereum’s scalability, creating a faster way to trade crypto with reduced gas fees.

At its core, Mantle supports decentralized applications (dApps) using a unique way of storing data called Optimistic Rollup technology. This makes it more accessible to users while maintaining its decentralized and secure nature.

The MNT token is the Mantle Network’s governance token. It allows holders to participate in decision-making, propose new developments, and vote on future network changes. However, the token also acts as the ecosystem’s incentive used to reward DeFi investors who stake their MNT tokens. It also acts as the network’s token for gas fees.

The MNT token is trading at around $0.7 at the time of writing, up over 17% in the past month. So, it offers a low-cost investment opportunity for traders.

Arbitrum (ARB)

With a market cap of over $2.3 billion at the time of writing, Arbitrum sits right behind Mantle on the best Layer 2 coins ranking. The Layer 2 solution is also built on Ethereum, with a focus on creating a faster and cheaper way to execute crypto transactions.

The blockchain solution was launched by Offchain Labs in 2021. Since then, it has become one of the most used scaling solutions in the Ethereum ecosystem. One of its core features is the “rollups”, which allows the platform to process transactions off-chain and then return them to the Ethereum network.

This decongests the network and makes it more efficient. The fast transaction speed also makes it attractive to developers building DeFi platforms and gaming applications.

The ARB token powers the Arbitrum ecosystem, acting as the governance token to join the Arbitrum decentralized autonomous organization (DAO). It is trading for around $0.6 at the time of writing, up over 6% in the past month.

Immutable (IMX)

Immutable (IMX) has a market cap of just below $2 billion. The Layer 2 token powers the Immutable Network, which is built on the Ethereum Network to power non-fungible tokens (NFTs) and decentralized games.

The Immutable Network is famous for its zero gas fees, making it a top choice for minting and trading NFTs. With the ability to process up to 9,000 transactions per second, the IMX token is fancied for transactions. The Layer 2 coin is valued at around $1.2 at the time of writing, down over 23% in the past month.

Optimism (OP)

Next in line for the top Layer 2 coins is Optimism (OP). The token powers the Optimism Network, an Ethereum scalable solution that also uses the Optimistic Rollups technology to settle transactions off-chain and record them on Ethereum afterward.

The OP token has a market cap of over $1.9 billion, with a unit price of around $1.5. The token has been down by over 8% in the past month, making it a considerably good time to purchase it at a lower price.

Starknet (STRK)

Starknet (STRK) is the utility token of the Starknet Ethereum Layer 2 solution, which uses zero-knowledge rollups (zk-rollups) to process extremely fast transactions at low fees.

The zk-rollup system ensures all transactions are validated at once, so they don’t need individual confirmations on Ethereum.

The STRK token is the native token, which is trading at around $0.4 at the time of writing.

Polygon (MATIC)

Polygon (MATIC) is one of the well-established Ethereum Layer 2 solutions for faster and cheaper transactions. It uses the zkEVM rollup and proof-of-stake (PoS) consensus mechanism to boost efficiency.

MATIC is its utility token used for fees, network governance, and staking. The MATIC token was recently upgraded to POL (ex-MATIC), which is trading at around $0.36.

ZKsync (ZK)

ZKsync (ZK) is the last Layer 2 coin on our list. Also built on Ethereum, the network offers a scalable and efficient way to transact with crypto. It also uses zk-rollups to process off-chain transactions and transfer them to Ethereum, making it cost-effective.

The ZK token supports ecosystem governance and gas fees. The token is also used for staking and staking rewards. At the time of writing, ZK is trading for approximately $0.14, up about 6% in the past month.

Conclusion

Like other cryptocurrencies, Layer 2 coins provide potentially rewarding investment opportunities. Their association with Ethereum also makes them attractive assets to buy. However, thorough research remains paramount to ensure you make informed decisions.

The Zypto Wallet is a Top Choice Among Layer 2 Investors

If you’re an investor interested in Layer 2 coins, you can buy them using 100+ payment methods on our Zypto crypto app. Also, after purchasing the tokens, Zypto Wallet is a great wallet option to safeguard them.

With support for thousands of assets, including DeFi tokens, you’ll have a top-rated crypto app and wallet on your hands.