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 Layer 2 projects built to enhance efficient blockchain operations. Layer 2 (L2) solutions exist to solve scaling problems with their highly affordable solutions that facilitate transactions faster.
The earliest blockchains, like Bitcoin, Litecoin, and Ethereum, have relatively slow speeds and charge high fees. They are referred to as Layer 1 blockchains, which are the primary blockchains.
It is critical to note that these L2 solutions don’t exist on their own. They are built on top of Layer 1 blockchains; that way, they can leverage the strengths of the blockchains they exist on to address the scalability and interoperability issues. Also, Layer 1 structures depend on Layer 0 for certain functions.
For instance, many Layer 2 blockchains exist on Ethereum (Layer 1). They leverage Ethereum’s security to provide their users with a more scalable and secure platform for transactions. This works by using smart contracts on the primary blockchain, making communication and transaction execution easy and fast.
Overall, Layer 2 is known as the networking layer, which enables communication between nodes and where off-chain scaling solutions connect.
Best Layer 2 Coins to Watch in 2025
Now that you understand Layer 2 tokens and how they work, it’s important to note that they are available on crypto exchanges for trading at any point. Similarly, interested people can invest in them in the conventional and decentralized finance (DeFi) market.
As of the time of this writing, Layer 2 tokens have a joint market cap of $8.73 billion and a trading volume of $854.98 million.
Here are the top Layer 2 blockchain solutions:
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.
In addition, Mantle leverages AI to optimize DeFi – via an Enhanced Index Fund, Mantle Banking, and MantleX – thus creating a cohesive financial ecosystem. It also enhances security and user experience with some vital integrations for a more efficient platform.
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 trades at around $0.74, with a market cap of $2.49 billion and a trading volume of $51.37.
Arbitrum (ARB)
Arbitrum is a Layer 2 solution 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.
Arbitrum supports technological advancement through over 1,000 Web3 projects, massively transforming the NFT and GameFi industries. It also strengthens scalability, reduces fraud, and accelerates decentralization through multiple integrations and updates.
The ARB token powers the Arbitrum ecosystem, acting as the governance token to join the Arbitrum decentralized autonomous organization (DAO). ARB is priced at $0.36, with a market cap of $1.59 billion and a trading volume of $136.13 million.
Optimism (OP)
Optimism is a fast, affordable, and stable L2 solution built to scale your Ethereum applications with efficiency and ease. More than just a blockchain, Optimism is a union of companies, communities, and citizens collaborating towards a progressive future for Ethereum.
Optimism uses the Optimistic Rollups technology to record transactions off-chain and secure them on Ethereum afterward.
It is powered by the OP token, which has a market cap of over $1.40 billion, with a unit price of around $0.86 and a trading volume of $87.12 million.
Immutable (IMX)
The Layer 2 token powers the Immutable Network, which is built on Ethereum to power non-fungible tokens (NFTs) and decentralized games. It aims to provide fast transactions, instant trading, and zero gas fees for minting and trading NFTs.
In addition, Immutable is developed with STARK zk-rollups, a technology that enhances the scalability of Ethereum amid a better user experience. Its native token is IMX, utilized for fees, staking and governance.
IMX is valued at around $0.56, with a market cap of $988.61 million and a trading volume of $28.82 million.
Starknet (STRK)
Starknet uses zero-knowledge rollups (zk-rollups) to process extremely fast transactions at low fees in a secure manner. It validates off-chain transactions with advanced cryptography, thus surpassing any limitations of Ethereum.
The zk-rollup system ensures all transactions are validated at once, so they don’t need individual confirmations on Ethereum. Fusing Bitcoin’s integrity and Ethereum’s utility, Starknet brings to the fore unlimited scale, user friendliness, and creativity for its community.
The STRK token is the native token, which is trading at around $0.18, with a market cap of $497.13 million and a trading volume of $23.91 million.
Polygon (POL)
Polygon (POL) 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.
Also, Polygon integrates other technologies to improve blockchain scalability, enhance on-chain lending, seamless interoperability and drive other investment opportunities, thus boosting DeFi functionality.
POL is its utility token used for fees, network governance, and staking. It was recently upgraded from MATIC and is trading at around $0.22, with a market cap of $414.43 million and a trading volume of $31.12 million.
ZKsync (ZK)
ZKsync (ZK) is the last Layer 2 coin on our list. The network offers a scalable, cost-effective, and efficient way to transact with crypto by using zk-rollups to process off-chain transactions and transfer them to Ethereum (its native blockchain).
A progressive protocol, ZKsync also provides a seamless user experience, integrating with other technologies for easy access to its features. It also utilizes advanced cryptography to enhance security and transparency.
The ZK token supports ecosystem governance, staking, and gas fees. At the time of writing, ZK is trading for approximately $0.07, with a market cap of $263.59 million and a trading volume of $47.84 million.
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.
Related: Web3 Blockchain: Layer 1 & Layer 2 Scaling Solutions
The Zypto Crypto App – a Top Choice for Layer 2 Investors
If you’re an investor interested in Layer 2 coins, you can both buy, store and trade them on Zypto App, the ultimate crypto app experience.
With support for over 25,000 crypto coins and tokens, including DeFi tokens, you’ll have a top-rated crypto wallet app on your hands.
Which Layer 2 tokens are you currently HODLing or hoping to buy soon? Let’s have your comments below.
FAQs
What are Layer 2 examples?
Some popular examples of Layer 2 networks include Mantle, Arbitrum, Immutable, and Optimism. They are scaling solutions built on Ethereum.
Which Layer 2 crypto is best?
The best Layer 2 coin depends on your choice and investment needs. However, we’ve listed the top options in this article.
Is Solana Layer 1 or Layer 2?
Solana is a Layer 1 scaling solution. The blockchain uses a proof-of-history (PoH) consensus mechanism to make transactions faster and cheaper.
I had only heard of 2 of the L2 blockchains before today.
Also in general I knew about L2s, but more knowledge =more better
Thanks for the good read!
When I thought abour ETH gas fees then this is always a problem for all of us. But, these L2 solutions offer real hope for all of us
I already swapped Bnb, Eth, Sol, Polygon, FTM chain tokens in Zypto App. But, still not experience about Layer 2 tokens. Definately try it very soon.
I’ve been HODLing $ARB since January and recently I added some $OP to my portfolio. Zypto makes it so easy to track these tokens performance side by side every single update.
Currently HODLING $IMX and NOW think for buying $MNT token after reading your latest blog post.