I assume you're familiar with Layer 2s since you read my post on Publish0x.
Publish0x uses the Optimism Network, one of the most popular Ethereum scaling solutions, for its weekly payouts.
For those unfamiliar, let's first understand what Layer2s are before we explore the Top 5 Layer 2 tokens.
What Are Layer 2s?
Layer 2 solutions, such as those on top of the Ethereum blockchain, enhance scalability while preserving Layer 1's security and decentralization standards. The most significant benefits of enhanced scalability are much faster and cheaper transactions.
The TOP 5 Layer 2 tokens by market capitalization according to recent data from CoinGecko are Polygon $MATIC, ImmutableX $IMX, Arbitrum $ARB, Optimism $OP, and Mantle $MNT.
Most of the native Layer 2 tokens are used for various reasons like paying transaction fees and staking but mainly for governance.
1. Polygon $MATIC
The Matic Network, now known as Polygon, is the layer 2 solution with the highest market capitalization. It currently holds the 15th rank in market cap and is focused on Ethereum scaling and infrastructure development.
It allows anyone to create Optimistic Rollup chains, ZK Rollup chains, stand-alone chains, or any other kind of infra required by the developer.
Project Website: https://polygon.technology
2. ImmutableX $IMX
Immutable X is a Layer 2 scaling solution for NFTs and gaming projects on the Ethereum Blockchain. Right now, more than 200 different projects are building on ImmutableX.It offers zero gas fees and the ability to process 9000 transactions per second.
Project Website: https://imx.community
3. Optimism $OP
The Optimism Network, ranked at number 3, is a digital democratic governance experiment on a large scale. Optimism is developed as a simple extension to the existing Ethereum software. The EVM-equivalent architecture of the OP Mainnet enables Ethereum apps to scale and function at a significantly lower cost.
Publish0x has been using the Optimism network to distribute weekly payouts to its users since the end of last year.
Project Website: https://app.optimism.io
You may also like: These Are The TOP Apps And Integrations In The Optimism Ecosystem
4. Arbitrum $ARB
Arbitrum is a roll-up chain that improves Ethereum's scalability by bundling multiple transactions into a single transaction, thus reducing the Ethereum network's load.
Project Website: https://arbitrum.io
5. Mantle $MNT
Mantle Network has made it to this list. It is a Layer-2 scaling solution that is Ethereum Virtual Machine (EVM)-compatible, and uses Optimistic rollups to enable fast and cost-effective transactions. Transactions are executed off-chain but settle on-chain.
Project Website: https://www.mantle.xyz
My Final Conclusion
These are the TOP 5 Layer 2 tokens by market capitalization. CoinGecko counts more than 20 Layer 2 tokens in total.
What is your favorite Layer 2 token? Is it one of the top 5, or do you prefer a smaller one like Loopring? Please let me know your thoughts in the comments section. Thank you for reading, and if you enjoy this type of content, consider following on Publish0x for more.
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You may also like: These Are The TOP Apps And Integrations In The Optimism Ecosystem
