Ethereum Layer 2 scaling solutions have grown increasingly popular. These L2 networks process transactions and run applications off the main Ethereum chain, increasing throughput and lowering gas fees. If you’re wondering which Ethereum L2 tokens might be worth considering next year, read on.
Polygon (MATIC)
Polygon is one of the most widely adopted Layer 2 scaling solutions for Ethereum. Many projects, including SushiSwap, already use Polygon, and it continues to attract teams building in Web3 and the metaverse. Developers choose Polygon because it delivers fast, highly scalable transactions. On Polygon’s internal testnet, a single sidechain has demonstrated throughput exceeding 7,000 transactions per second, a stark contrast to roughly 14 TPS on Ethereum’s mainnet.
Given Polygon’s growing adoption, investing in its native token MATIC is a logical consideration. At the time of writing, MATIC trades around $0.90, below its all-time high near $3.00 reached last year. The token has shown a gradual recovery from the lows, hinting at renewed investor interest. MATIC ranks among the top cryptocurrencies by market capitalization, reflecting a market value of approximately $7.89 billion.
Where to buy MATIC
Loopring (LRC)
Loopring is another Layer 2 project worth evaluating. It is an open-source, non-custodial exchange protocol that also functions as a payment layer. Loopring employs hybrid scaling techniques designed to increase Ethereum’s capacity dramatically—claims put its scaling potential at up to 1,000 times the base network.
Loopring’s token (LRC) trades near $0.20 and sits lower in the market-cap rankings, around the #89 position with a market capitalization near $324.5 million. Currently, LRC remains under pressure from the broader bear market and may not present an immediate buying opportunity for risk-averse investors. However, a sustained market recovery could lift LRC’s price as demand for efficient L2 solutions returns.
Where to buy LRC
Optimism (OP)
Optimism is a Layer 2 network built on optimistic rollups to host decentralized applications on Ethereum. By batching and verifying transactions off-chain, Optimism speeds up processing and lowers transaction costs for users and developers.
The Optimism token (OP) drew significant attention during its June 2022 airdrop and subsequently climbed to highs near $2.20 before correcting. Amid the ongoing bear market that has affected many cryptocurrencies, OP has been recovering steadily and trades around $1.13. With a market capitalization near $264.3 million, OP is positioned around the #104 spot by market cap.
Where to buy OP