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The advent of Layer 2 projects that have become pivotal for many existing blockchain challenges. By establishing on the top of Layer 1 projects, these L2 crypto projects have improved transaction throughput while decentralizing blockchains and maintaining security. In our Layer 2 crypto project list below, we have handpicked the most innovative Layer 2 coins that are leading the evolution in the blockchain domain.
The Layer 2 (L2) world has overcome the myth of not being the profit-turning machine in the crypto domain. As of 11th January 2025, top Layer 2 (L2) coins are moving in the right direction with a mind-blowing market cap of $28,053,352,104, which is only down by 0.03%. If we look at the 24-hour volume, $2,458,158,572, it has shown some dramatic movement. However, don’t forget to check the top gainers and top losers in this section.
$28,053,352,104 -0.03%
$2,458,158,572 -28%
Top gainers
Nigella Chain
$1.16
9.31%CrossFi
$0.685682
9.04%Puffer
$0.787677
8.84%Top losers
Glacier Network
$0.01196832
-18.74%AlienXChain
$0.01666502
-17.01%BitBoard
$0.00040055
-12.15%Loopring:Improves the speed and cost of blockchain transactions, without compromising on the decentralization.
Dymension:One of the top layer 2 crypto projects for 2024, providing innovative scalability solutions for transactions.
Starknet:Starknet uses zk-rollups to deliver scalability and security for Ethereum without compromising on decentralization.
Optimism:Top layer 2 crypto token for 2024, known for its speedy transactions and reduced fees
Arbitrum:One of the best layer 2 crypto projects in 2024, offering fast and cost-effective scaling solutions for Ethereum.
Immutable X:Immutable X transforms the gaming and NFT space with zero gas fees and instant trades.
Polygon:One of the top Ethereum layer 2 projects for 2024, known for its robust and scalable solutions for Ethereum transactions.
Lightning Network:A layer 2 project powering the Bitcoin ecosystem with fast, and low-cost transactions.
Certain cryptocurrency experts predict that during the upcoming bull run, projects focused on tokenizing Real World Assets (RWA), Non-Fungible Tokens (NFTs), and Decentralized Finance (DeFi) will garner significant attention. In our opinion, Layer 2 crypto projects will also help traders safeguard themselves. Investing in layer 2 cryptocurrency tokens can help traders diversify their holdings by exposing them to strong potential coins.
Loopring is a popular DEX that runs on the Ethereum blockchain. The objective is to deliver an efficient, reduce costs, and secure manner of exchanging the different cryptocurrencies. Unlike conventional on-order book-based exchanges, Loopring relies on the zkRollup structure. It adheres to off-chain order matching and payment, which reduces fees and increases the platform’s capacity to handle a large number of trades. Loopring processes over 2,000 transactions per second, making it one of the scalable layer 2 crypto projects.
The zkRollup technique consolidates many transactions in a single proof, which is then checked in the Ethereum mainnet. This type of processing frees a lot of computational work from the Ethereum network. Hence, lower gas fees and faster transaction processing time. Also, it is noteworthy to mention that zkRollups has pretty good privacy as transaction data is not disclosed on the blockchain.
Loopring currently accepts almost all the ERC-20 tokens and other digital currencies. Many features are available for trading with users, which include limit orders and market orders as well as engaging in various trading strategies. This also brings in additional tools, including but not limited to liquidity pools and automated market makers (AMMs), which enable the provision of the necessary liquidity for actual trade. Also, scalability, privacy, and low transaction costs make it a highly likely solution for the future of decentralization in trading.
Loopring
Live Price $0.184181 | Coin Symbol lrc |
Circulating Supply 1245991468.94 | Market Cap $229503503 |
Dymension is offering a reliable and scalable ecosystem for executing blockchain applications with the help of optimistic and zk-rollups components. This mix of approaches shows that the transactions’ fulfillment in Dymension can occur with high scalability and increased security at the same time, or with higher priority on one of those aspects. Optimistic rollups in Dymension mean that off-chain transactions are executed quickly, while zk-rollups ensure that these transactions have cryptographic proofs for privacy. This type of structure allows Dymension to process a large number of transactions, and therefore, the company can scale it in the developing marketplace of blockchain systems.
Security is crucial in Dymension since it has stringent procedures that check on any fraudulent activities in the network. It has versatile scaling solutions that combine the merits of both types of rollups. Dymension is well-adapted to applications that require both speed and security. Since the popularity of decentralized finance (DeFi) and other blockchain solutions is still expanding, the offered platform from Dymension will also be in high demand.
It also facilitates Inter-Blockchain Communication (IBC) protocol compatibility with different blockchains. Developers can customize RollApps to meet unique requirements by selecting suitable intelligent contracts, data solutions, and consensus processes.
Dymension
Live Price $1.21 | Coin Symbol dym |
Circulating Supply 222289169 | Market Cap $268825383 |
Starknet is a layer 2 scaling solution that leverages zero-knowledge (zk) rollups that provide even more privacy and security. The transactions that take place on Starknet are checked through mathematical computations that prove that the transaction is valid without revealing the actual data associated with the transaction. All this makes Starknet highly secure than traditional blockchains. Zk-proofs guarantee the transaction is not only safe but also unchangeable, which brings a lot of security to the Ethereum system. This focused privacy does not mean sacrifice though; on the contrary, Starknet has a highly scalable solution in the form of zk-rollups.
Starknet’s architecture supports complex smart contracts and decentralized apps, making it a good option for developers. Additionally, Starknet is also made to fit the growing demand of dApps emerging in the scene, offering the proper means for the creation of more robust and effective decentralized applications. As the blockchain domain develops further, the topics of scaling and privacy are emerging as crucial, and Starknet stands as the innovative project that solves both scaling and privacy issues. Starknet has a solid throughput of up to 4,000 transactions per second (TPS).
Starknet also supports a feature known as Account Abstraction that enables developers to build apps with better UX. With the bull market around the corner, DeFi projects will rely on Starknt for scalability. So, the project has long-term value.
Starknet
Live Price $0.430221 | Coin Symbol strk |
Circulating Supply 2419112366 | Market Cap $1040752852 |
Optimism includes off chain transactions and then sending transaction data back to the Ethereum mainnet, as well as their execution and consolidation. By reducing the overall network load, optimism enables faster and lower transaction fees. EVM compatibility allows optimistic DApps to be integrated with Optimism without requiring a rewrite of their code.
Developers who are familiar with Ethereum but seek greater scalability and lower fees are drawn to Optimism because of this. It can be emphasized that Optimism features an integrated challenge mechanism that thwarts fraudulent transactions before they happen. Each of these transactions is examined, and users have the option to contest any that they believe to be fraudulent. Optimistic Rollups to ensure high throughput and that transactions remain cheap, while maintaining Ethereum’s decentralization and security.
Optimism has a transaction speed of around 714 TPS. This means the layer 2 platform can handle transactions up to 26x quicker than Ethereum’s mainnet. As per the platform’s whitepaper OP token is a utility token used for staking, fees, and governance. OP has surged by over 25% in the last year, showing its potential as a top layer 2 coin.
Optimism
Live Price $1.78 | Coin Symbol op |
Circulating Supply 1351719035 | Market Cap $2402208147 |
Arbitrum is a popular Ethereum layer-2 project that uses optimistic rollups to optimize transactions. Arbitrum helps to decentralize transaction execution from the Ethereum mainnet by allowing its users to transact at significantly lower costs and times. Optimistic rollups combine multiple transactions and perform computations off-chain, resulting in fewer transactions and thus lower transaction fees. Arbitrum can process transactions up to 10 times quicker than Ethereum’s mainnet and save up to 95% on gas expenses. Its peak throughput is 40,000 TPS. According to Defilama, as of September 2024, Arbitrum holds $2.57b TVL among Ethereum’s top Layer 2 crypto projects.
Arbitrum also has the benefit of being completely compatible with the EVM. This means that developers can easily migrate their Ethereum dApps to Arbitrum with minimal code changes, reduce costs, and higher speed.
Arbitrum is developer-friendly, as it provides its users with all of the materials, explanations, and assistance they may require, making it an appealing option for blockchain development. Security is another key component of Arbitrum. Users can rely on Arbitrum’s security and use its challenge mechanism to reverse any transaction they believe is fraudulent, making things even safer. Thus, Arbitrum presents an excellent opportunity to help relieve network pressure through scalability and security while remaining true to the decentralized ethos.
As we see from the whitepaper, the project is moving toward a community-driven future while staying true to its decentralization goals. Its ecosystem supports many gaming platforms, NFT marketplaces, and finance protocols. Uses for the native token, ARB, include network governance, staking, and transaction fees.
Arbitrum
Live Price $0.735792 | Coin Symbol arb |
Circulating Supply 4210111968 | Market Cap $3097834647 |
Immutable X is another Layer 2 scaling solution that has been developed for the purpose of supporting NFT assets. It runs on Ethereum but has a different trading layer for NFTs with near-instant settlement, zero gas fees, and high throughput.
It uses ZK-Rollups to reach over 4,000 TPS with almost instantaneous transactions and low fees while preserving robust infrastructure thanks to its Ethereum mainnet. In addition to being utilized for fees, staking, and network fuel, the native coin IMX is also used for governance.
It has no transaction cost and also presents a strong option for those who are involved in the creation and sale of NFT and collection of the same. This means that Immutable X means that there are fewer transactions concerning gas on the Ethereum network, hence being economical for high trading of NFTs. Furthermore, Immutable X has high throughput, implying that a large number of transactions can be concluded within a very short time, thus making the experience of the user smooth.
Immutable X offers gamers a seamless experience that includes cost efficiency, fast transactions, genuine NFT ownership, and game compatibility. Developers enjoy minimal prices, simple-to-use tools, and a friendly community within a dynamic ecosystem of games, markets, and decentralized apps.
ImmutableX is one of the most prominent Ethereum Layer 2 blockchains in terms of TVL and market share. It also allows NFT minting, trading, and transfer efficiently because of its high throughput capacity. Ethereum-based blockchains are always compared to Bitcoin Layer 2 projects.
Immutable
Live Price $1.25 | Coin Symbol imx |
Circulating Supply 1719283101.39 | Market Cap $2142932526 |
Polygon is a set of protocols based on Ethereum that claims to bring efficiency and affordability to the blockchain. It has multiple scaling solutions – the first one is Plasma chains, the second is known as zkRollup, and the third one is known as Optimistic Rollup.
In line with this mechanism, Plasma Chains Solution by Polygon offers off-chain solutions in the same vein as the Lightning Network. This makes it cost-effective since it reduces the load on the ETH mainnet and equally lowers the transaction fees. The company also offers the zkRollup as well as the Optimistic Rollup, which also brings improved scalability by collecting multiple transactions in one and then concludes with high speed testing.
Polygon’s dual-layer method enables it to process thousands of transactions per second, and solve Ethereum’s scalability issues. Polygon has a throughput of about 65,000 TPS.
Another significant advantage of Polygon is that it is compatible with EVM, as we’ve already mentioned. This saves developers time and money by enabling them to swiftly transfer their dApps from Ethereum to Polygon. Moreover, Polygon keeps the emphasis on security and decentralization so the project can always stay aligned with the Ethereum ecosystem.
Due to its robust infrastructure, affordability, and scalability, it is one of the most sought-after developments and is thus advised for developers wishing to build their projects on Ethereum.
Polygon
Live Price $0.454066 | Coin Symbol matic |
Circulating Supply 1920726438.8 | Market Cap $873241378 |
The Lightning Network is one of the layer-2 solutions that propose to enhance the Bitcoin network in terms of speed of transactions and their cost. Additionally, it continues to function as a payment-clearing network for off-chain transactions and instantaneous clearing services among the participants. With a throughput of up to 1 million TPS, the platform makes it easy for anyone to use Bitcoin and at a lower cost. The platform supports off-chain transactions using a network of bidirectional payment channels.
In order to reduce network traffic and fees, users can complete transactions using Lightning Network outside of the main network of the Bitcoin blockchain. For micropayments and subscription models, it is therefore appropriate for low-value “touch points” and recurring payment types.
They have also mentioned other advantages of the Lightning Network, like its quick settlement time. In comparison to the Bitcoin blockchain, this solution is faster and better because transactions can be cleared within participants in a matter of seconds. Further, the Lightning Network facilitates anonymity for users, and the information regarding the transactions does not go on the mainchain.
Under the guise of Bitcoin payment transactions, the Lightning Network may be the revolutionary light that unlocks new technical frontiers. However, its implementation and deployment are contingent on the user’s acceptance, security issues, and compliance requirements.
The Lightning Network expands Bitcoin’s reach, making it one of the top layer 2 projects to watch out for. While the lightning network is the best Bitcoin layer 2 project, there are more options.
Bitcoin
Live Price $94475 | Coin Symbol btc |
Circulating Supply 19808650 | Market Cap $1873584953276 |
Layer 2 solutions seek to address the scalability and efficiency of Layer 1 blockchains, or the underlying blockchain. Layer 2 platforms, in a nutshell, provide layer1 blockchains with cheaper transactions while retaining the security features of the layer1 chain. Let’s look at them in detail.
Layer 1 refers to the main blockchain architecture or the base layer. The Bitcoin and Ethereum blockchains are perfect examples of layer1 blockchains. They are behind the fundamental operations of the network. Layer1 chains handle things such as security, consensus mechanism, and transaction validation.
Although layer1 blockchains like Bitcoin are pretty solid in their security, they struggle with scalability. This results in slower transaction times and users paying more in fees, especially during peak periods of high demand. Scalability problems often pose a limitation for layer1 blockchains, affecting their adoption and further use cases such as microtransactions. Now, let’s look at how layer 2 solves these challenges.
Layer2 platforms exist on top of layer blockchains. Their goal is to make these layer 1 chains more efficient and scalable. Layer 2 platforms process transactions off-chain, and send the final data back to the main blockchain. This way, they rescue network congestion and transaction costs.
Layer2 solutions use common technologies such as side chains, rollups, state channels to enable faster transaction speed and low transaction fees. They also leverage the decentralization and security of layer 1. Layer 2 solutions make layer1 chains like Ethereum ready for more adoption and practical use cases. Some of the top layer 3 projects are working towards making transaction speeds faster, by making L2 networks even more scalable.
When selecting the best Layer 2 blockchain projects, keep the following essential criteria in mind:
Layer 2 solutions that provide Ethereum Virtual Machine (EVM) compatibility, such as Arbitrum, ZKSync Era, and Linea, are a good option for developers wishing to transfer their dApp from Ethereum Layer 1 to Layer 2 without having to make significant modifications to their code.
Seek out Layer 2 networks with enhanced scalability and efficiency to handle a higher volume of transactions at a reduced expense. This is especially crucial for finance applications, as adoption barriers like high transaction volumes and gas expenses might be substantial.
Verify that the Layer 2 system you select upholds the same degree of decentralization and security as the eth mainnet. ZK-Rollups and other Layer 2 solutions provide more robust security assurances than Optimistic Rollups.
Consider how effectively the Layer 2 solution functions with the Ethereum ecosystem’s various networks and technologies. For example, Coinbase’s Base easily connects with Coinbase tools, users, and products.
To assist you in creating and implementing your dApp, pick a Layer 2 solution that offers thorough developer assistance, including community resources, documentation, and tools.
Track Record: Seek out Layer 2 networks with an established history of dependability and performance. Review comments and endorsements from other programmers and users who have previously implemented the Layer 2 solution.
Choosing the best layer 2 crypto platform would depend on your needs. You’d have to factor in needs such as security, scalability, user adoption, and fees. However, Loopring stands out for its comprehensive way of scaling Ethererum thus making it the best layer 2 crypto coin. Polygon’s developer-friendly environment and broad adoption are good reasons to choose it. Polygon is also EMV-compatible, meaning you can easily interact with other Ethereum apps.
We’ve highlighted some of the top layer2 crypto projects in 2024. Each of these solutions help make layer1 chains efficient and scalable. Polygon, Arbitrum, Optimism, Loopring, Starknet, each, offers unique contributions to the ecosystem. As more people continue to adopt blockchain, the demand for these layer2 platforms is bound to increase.
Since its official mainnet debut, Base (which originated from Coinbase Exchange) has become the fastest-growing layer 2 blockchain.. It has acquired 1 million unique addresses. Before the Base network's formal debut on August 9, 2023, users had already added 532k addresses by using unauthorized bridges to connect to the chain.
In addition to being faster and less expensive than routers, Layer 2 switches do not require an IP address or a routing algorithm to forward data.
An off-chain network or technology constructed on top of a Layer 1 blockchain is called a Layer 2 network. A Layer 2 often functions as an additional blockchain that builds upon the original Layer 1 blockchain and takes over its security assurances.
coinpress prepared a review methodology to rate crypto exchanges, tools, and apps. We curated a list of metrics to evaluate crypto platforms based on their services, user experience, security and customer support, payment gateways and charges, pricing and promotions. Visit our Review Methodology page to learn more about how we review each crypto platform.
This content is purely for educational purposes and should not be considered as financial advice. Do your own research before investing in any crypto platform and only invest the amount you can afford to lose.
DAILY NEWSLETTER
Your daily dose of Crypto news, Prices & other updates..