Layer-2 Tokens Enjoying New Life
London: 28 November 2023 (TraderMade): Layer-2 cryptocurrencies are native to the projects built on top layer-1 Blockchains such as Ethereum and Bitcoin. After a year, they have found a new life as the crypto tide is rising.
The Crypto prizes have been lifted since the summer due to anticipation of using US borrowing costs and possible US spot Bitcoin exchange-traded funds. Moreover, Bitcoin has also been gaining by about half since the end of August.
The tokens associated with layer-2 projects have a combined market cap of $14.3 billion, which is 10th of the total Crypto market. This applies to tokens that especially speed up transactions and cut costs. Matic is the most significant layer-2 token, having a market cap of $6.90 billion. It has jumped 20% to $0.74 in the past 30 days. Polygon, a platform used to reduce congestion on the Ethereum network, uses this.
Immutable, Mantle, Arbitrum, and Optimism are the next four most significant coins. They have been leaping between 9% and 105% over the past month and are trading between $0.5 to under $2 apiece.
Ether, the layer-1 token, is linked to the Ethereum blockchain on which most layer-2 tokens are based. It has leaped 13.8% to $2,028.80 over the past month.
