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Ethereum is the leading platform for building decentralized applications (DAPP) and other decentralized autonomous organizations (DAOs). It accounts for more than 80% of all blockchain projects. But it is not a perfect platform thanks to its slow speed and high transaction costs. This is where layer 2 projects come in. These are blockchain projects that help developers to optimize their apps. Let us look at the best layer 2 cryptocurrencies to invest in.
Polygon
Polygon (MATIC/USD) is the biggest layer 2 project in the world. MATIC, its native token, has seen its price rise by more than 10,000% this year. That has brought its total market capitalization to more than $14 billion and made it the 14th biggest cryptocurrency in the world.
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Polygon’s growth has happened as more developers use it to scale their Ethereum apps. Some of the top developers that currently use it are Aave, Curve Finance, and QuickSwap. According to DeFi Llama, there are more than 130 DeFi projects built in Polygon that have a total value locked of more than $4 billion.
Polygon has inked some notable partnerships and it has become the go-to platform for people who are building on Ethereum. I expect that the Polygon price will keep rising in the coming years.
Loopring
Loopring is a layer 2 platform that is relatively different than Polygon. It is a zero-knowledge platform that runs a decentralized exchange (DEX) where people can buy and trade assets. The goal is relatively simple.
The developers wanted to provide a platform where people can go and buy assets in a decentralized way without going through Ethereum directly. This is important because many Ethereum DEXes tends to be relatively slow. This happens because Ethereum can only transact less than 20 transactions per second (tps).
Loopring’s native token is known as LRC. Its price has jumped by more than 1,200% this year. It has a market cap of more than $2.8 billion.
Immutable X
The Non-Fungible Token (NFT) industry is doing relatively well. This year alone, NFT deals worth billions of dollars have been implemented. And analysts expect that the industry will keep doing well in the coming years.
Ethereum is the biggest blockchain platform for NFTs and Immutable X is the biggest layer 2 platform that focuses on the industry. It helps to ensure that users pay almost zero gas fees and that people can transact instantly. Immutable X has a token known as IMX that has a market cap of more than $1 billion.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- bitFlyer, simple, easy to use and regulated. Register here >
