Top Layer 2 Crypto Projects in 2024

Introduction

In the ever-evolving landscape of cryptos, Layer 2 solutions have emerged as a promising avenue, offering scalability, enhanced transaction speeds, and reduced fees. Delving into the realm of Layer 2 crypto projects, this comprehensive guide navigates through the top contenders set to redefine the blockchain space in 2024. From Polygon to Arbitrum and beyond, explore the top 10 Layer 2 blockchain projects poised to revolutionize the crypto sphere, providing insights into their innovations and potential impact on the market.

Polygon

Polygon, formerly recognized as Matic Network, emerges as a leading Layer 2 scaling solution designed specifically to tackle Ethereum’s scalability challenges and the accompanying high transaction costs. Positioned as an enticing crypto asset for potential investments in 2023, Polygon aims to optimize Ethereum’s decentralized application (DApp) functionality by constructing scalable blockchain networks, boasting features like low fees and rapid confirmation times.

A recent milestone for Polygon involves reaching unprecedented transaction volumes through its zkEVM. The transition from MATIC to POL symbolizes a pivotal upgrade, granting governance rights to POL holders. This empowerment enables them to propose and vote on network upgrades, fostering a decentralized ecosystem. POL Tokens significantly reduce transaction fees, augmenting the network’s cost-efficiency and attracting more developers and users.

Emphasizing liquidity provision, interoperability, and heightened security, Polygon 2.0 anticipates increased adoption among developers and applications within its ecosystem. The MATIC to POL transition signifies Polygon’s commitment to fostering innovation and adoption, creating a secure, user-centric environment that caters to diverse user needs. This reflects Polygon’s steadfast dedication to delivering an advanced blockchain network and an enriched ecosystem.

Current Price	$0.51
Market Cap	$5 billion
Circulating Supply	9.89 billion MATIC
Max Supply	10 billion MATIC
Vol (24H)	$436 million
Change (YTD)	-47.2%
Founder	Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic

• Throughout 2023, Polygon’s MATIC price exhibited relatively subdued movements, struggling to capitalize on market rebounds as effectively as its peers.
• In early 2024, MATIC price showed signs of resurgence, testing the critical $1 threshold twice and briefly reaching $1.2, suggesting a potential breakout. However, since mid-March 2024, MATIC price has corrected from $1.2, declining by over 56%.
• Currently, Polygon price is trading well below the crucial Fibonacci base pivot level at $0.6. To regain bullish momentum, it must surpass $1 again, which is significantly above the R3 Fibonacci pivot level.
• Following this correction, the 50-day and 200-day EMAs formed a death cross on April 25, potentially introducing fresh selling pressure on MATIC price, and this death cross is still in effect.
• Moving forward, the psychological level at $0.5 could serve as critical support, establishing a pivotal zone for the altcoin.

Read On: Top Altcoins in 2024

Arbitrum

When it comes to top Layer 2 projects for Ethereum, Arbitrum consistently earns its place at the forefront. This optimistic rollup solution utilizes an intricate Optimistic Virtual Machine (OVM) that runs Ethereum code off-chain, achieving lightning-fast transaction speeds and near-zero gas fees without compromising on security. This translates to a smoother, more affordable user experience, a stark contrast to Ethereum’s notorious scalability challenges.

But Arbitrum’s prowess extends beyond raw speed. Its vibrant ecosystem boasts a wide range of decentralized applications (dApps) spanning DeFi protocols, NFT marketplaces, and even play-to-earn games, all seamlessly deployed and functioning on its optimized infrastructure. This diverse offering attracts both users and developers alike, further solidifying Arbitrum’s position as a thriving hub for blockchain innovation on top of Ethereum.

With its impressive scalability, thriving ecosystem, and unwavering dedication to decentralization and security, Arbitrum has secured its spot as one of the top Layer 2 projects to watch closely in 2024. Keep your eyes on this game-changer as it continues to empower developers, scale Ethereum’s potential, and redefine how we interact with blockchain technology in the years to come.

Current Price	$0.71
Market Cap	$2.32 billion
Circulating Supply	3.23 billion ARB
Total Supply	NA
Vol (24H)	$362 million
Change (YTD)	-53.7%
Founder	Steven Goldfeder

• In line with the broader trend of massive depreciation in value amongst the top layer 2 cryptos in the market – Arbitrum price too has borne the brunt of this correction.
• Despite having seen a solid rally late in 2023 and in the early weeks of 2024 – touching new YTD highs of $2.4 by the second week of January 2024 – however, since then, ARB price has been on a non-stop corrective spiral, especially since March 2024.
• Arbitrum price has fallen over 68% from January highs, and is down well below the $1 mark – trading heavily in the bearish zone. 
• Arbitrum price is trading below both the 50-day and 200-day EMAs, both of which underwent a bearish death cross back in April itself and that has sustained since then.
• To gain back its bullish momentum, ARB price needs to break out of both the EMAs, and sustain above them to ensure a bullish golden crossover to bring in fresh buying activity into the altcoin.
• On the downside, the S3 Fibonacci pivot level at $0.5 – which also happens to be a psychological price level should serve as a support for Arbitrum price.

Additional Read: Top 10 Cryptos 2024

Mantle

While most Layer 2 solutions focus on speeding up Ethereum transactions, Mantle takes a bolder approach, unlocking a gateway to interoperability within the blockchain landscape. Built on top of the Optimism network, Mantle leverages its own unique infrastructure to seamlessly connect Ethereum with other blockchains, breaking down the walls between isolated ecosystems.

Imagine freely transferring your NFTs or DeFi assets between Ethereum and other prominent chains like Solana or Avalanche, all without sacrificing speed or security. Mantle makes this a reality through its innovative cross-chain messaging protocol, enabling atomic swaps and frictionless asset movement across different blockchain worlds. This opens up a myriad of possibilities for developers and users alike, fostering broader DeFi adoption and enriching the overall crypto experience.

But Mantle’s ambition doesn’t stop there. It aims to become a thriving hub for next-generation Web3 applications, specifically targeting high-performance gaming and metaverse projects. Its low transaction fees, fast finality, and interoperable capabilities create the perfect environment for these demanding use cases, attracting talented developers and fostering cutting-edge innovation in the burgeoning Web3 space.

Current Price	$0.69
Market Cap	$2.28 billion
Circulating Supply	3.26 billion MNT
Max Supply	6.2 billion MNT
Vol (24H)	$276 million
Change (YTD)	+8.6%
Founder	Pascal Leblanc

• In line with the broader trend of significant value depreciation among top layer 2 cryptos in the market, Mantle price has also experienced a substantial correction – similar to Arbitrum mentioned above.
• Despite a strong rally ever since the start of 2024 – eaching new YTD highs of $1.51 by the middle of April 2024, MNT price has since been on a continuous downward spiral, immediately after attaining the highs.
• MNT price has dropped over 68% from its April highs, now trading well below the $1 mark, firmly in bearish territory under $0.7.
• MNT price is trading below both the 50-day and 200-day EMAs, and these EMAs are also on the verge of undergoing a bearish crossover very soon, if the current trajectory does not reverse. 
• To regain its bullish momentum, MNT price needs to break above both EMAs and sustain above them and flip the crucial psychological level at $1.
• On the downside, the S3 Fibonacci pivot level at $0.53, which also serves as a psychological price level, should act as a support for MNT price.

ImmutableX

For gamers and NFT enthusiasts seeking blazing-fast transactions and zero gas fees, Immutable X deserves a top spot on your radar. This Layer 2 scaling solution built on Ethereum boasts an impressive arsenal of features tailored to revolutionize the NFT gaming space.

Immutable X’s claim to fame lies in its innovative ZK-Rollup technology. This technology essentially bundles transactions off the main Ethereum chain, processing them in batches at lightning speed while inheriting the security of the underlying blockchain. The result? Frictionless NFT trading and gameplay, where users can mint, trade, and battle for digital glory without the crippling gas fees or network congestion that plague Ethereum.

But Immutable X doesn’t stop there. To elevate the gaming experience, it offers a suite of developer tools and APIs, empowering creators to build immersive, NFT-infused games like Gods Unchained and Guild of Guardians. These games seamlessly integrate blockchain elements, allowing players to truly own their in-game assets and reap the rewards of their virtual exploits.

With its focus on scalability, developer-friendly tools, and a thriving gaming ecosystem, Immutable X is poised to usher in a new era of seamless and engaging NFT-powered gaming. Keep your eyes peeled on this project as it continues to redefine the boundaries of blockchain gaming and pave the way for a more accessible and user-friendly future.

Current Price	$1.4
Market Cap	$2.1 billion
Circulating Supply	1.5 billion IMX
Max Supply	2 billion IMX
Vol (24H)	$66 million
Change (YTD)	-34.3%
Founder	Robbie Ferguson

• ImmutableX stands out as one of the poorer performers amongst other top layer 2 tokens on this list. IMX price has lost a greater share of its gains in 2024, and is now trading heavily in the negative zone for 2024. 
• Similar to Arbitrum, ImmutableX price too has lost well over 60% from its YTD highs in 2024 – and is currently trading at $1.4, well below both the 50-day and 200-day EMAs, both of which underwent a bearish crossover earlier last month in June 2024.
• For IMX to regain bullish momentum, it needs to break above both the EMAs and sustain above them long enough to ensure a bullish golden crossover. Further, a breakout above the psychological level at $2 could lead to price targets of $2.35 to $2.7 before the end of July 2024.
• On the downside, the S2 Fibonacci level at $1.2 is expected to serve as a support region for the altcoin.

Optimism

Optimism, a leading Layer 2 project for Ethereum, has become a beacon of hope for scaling the network and unlocking its true potential. This solution utilizes an optimistic rollup, which essentially bundles transactions off the mainchain, verifying them securely and efficiently before “optimistically” assuming their validity. This clever trick allows for near-instant transactions at minimal cost, eliminating the dreaded bottlenecks and hefty gas fees often plaguing Ethereum.

But Optimism isn’t just about speedy transactions. It boasts a vibrant ecosystem of decentralized applications (dApps) and protocols, ranging from DeFi platforms like Synthetix and Uniswap to NFT marketplaces like Opensea, all running seamlessly on its optimized infrastructure. This diverse offering caters to a wide range of crypto enthusiasts, solidifying Optimism’s position as a crucial bridge between the current and future iterations of Ethereum.

Furthermore, Optimism’s commitment to decentralization and security is unwavering. Its open-source codebase, governed by the Optimism Collective, ensures transparency and community involvement in its development. This collaborative approach, coupled with its robust security measures, instills confidence in users and developers alike, making Optimism a reliable and trustworthy destination for building the future of decentralized finance and beyond.

Current Price	$1.52
Market Cap	$1.71 billion
Circulating Supply	1.12 billion OP
Max Supply	4.29 billion OP
Vol (24H)	$429 million
Change (YTD)	-58.9%
Founder	Jinglan Wang, Kevin Ho, and Karl Floersch

• Optimism, an alternative layer 2 crypto project, showcased significant growth during the “Uptober” 2023 period, breaking free from a previously sustained descending triangle pattern.
• Breaking away from the bearish descending triangle pattern in mid-October, OP price has sustained a strong bullish trend for approximately six weeks, rising from below $1.2 to around $2 by the end of the year.
• However, in line with the broader correction in the crypto market and the top layer 2 tokens sector of the crypto market taking a major hit, Optimism price too has seen some deep falls. 
• Similar to other tokens on this list, OP price too is trading well below both the 50-day and 200-day EMAs and both have undergone a bearish death cross back in May 2024.
• To regain bullish momentum once again, Optimism price needs to break out of the $2 level, which is a psychological resistance for the layer-2 token and also aligns with the base Fibonacci pivot level for July 2024.

Know More: Top Memecoins You Should Knowc

Skale

For those seeking a unique approach to Ethereum scalability, SKALE offers a refreshing perspective. Unlike most Layer 2 solutions, SKALE leverages a network of independent “sidechains” built on top of Ethereum. These sidechains, also known as SKALE Chains, provide custom-tailored environments for specific applications, catering to diverse needs in terms of security, privacy, and transaction fees.

This modular architecture presents exciting possibilities. Developers can choose the ideal sidechain for their project, whether it’s a high-performance DeFi protocol seeking blazing-fast speeds or a privacy-focused NFT marketplace requiring enhanced anonymity. This flexibility empowers innovation and fosters a wider range of dApps to flourish on the Ethereum ecosystem, ultimately enriching the user experience.

But SKALE’s innovation doesn’t stop there. It boasts features like instant finality, which ensures near-immediate transaction settlement on sidechains, and interoperability with Ethereum through its secure, trustless bridge. This bridge allows seamless asset movement between the mainchain and sidechains, further enhancing user convenience and fostering cross-chain interaction.

Current Price	$0.04
Market Cap	$241 million
Circulating Supply	5.49 billion SKL
Total Supply	7 billion SKL
Vol (24H)	$22 million
Change (YTD)	-36.1%
Founder	Jack O’Holleran

• Skale’s recent price trajectory has been highly volatile, making it difficult to pinpoint favorable entry points and skewing the risk-reward ratio towards higher risk for potential investors.
• Since November 2023, Skale price has exhibited a consistent higher high, higher low price action, positioning it as the second-best performing layer 2 token in this list. But ever since April 2024 – SKL price has been falling consistently, in line with the overall fall in the top layer 2 tokens in the crypto market.
• Currently, SKL price faces significant resistance at $0.06, $0.07, and $0.08, which correspond to the base pivot level of the Fibonacci pivot points, coinciding with the short and long-term EMAs and can serve as targets for the remainder of the month.
• On the support side, SKL price is anticipated to find stability around $0.04, aligning with the base pivot level of the Fibonacci pivot points.

Loopring

Amidst the Layer 2 crypto project frenzy, Loopring shines as a pioneer in zk-Rollup technology, offering Ethereum users a potent mix of blistering speed, minimal fees, and advanced functionality. Its custom-built zk-Rollups process transactions off-chain, verifying them using cryptographic proofs on the mainchain, resulting in near-instantaneous settlements and gas costs that are mere fractions of those on Ethereum itself. This unlocks a world of possibilities for DeFi enthusiasts, traders, and anyone seeking a smooth, cost-effective experience.

But Loopring is more than just a speed demon. It boasts a robust DeFi ecosystem built specifically for its high-performance infrastructure. Decentralized exchanges (DEXs) like Loopring DEX offer lightning-fast order book trading and innovative features like ring-matching, ideal for active traders and yield farmers seeking optimal execution. Moreover, its integration with major wallets and protocols like MetaMask and Uniswap V3 enhances accessibility and fosters further cross-platform interactions.

With its unparalleled transaction speed, dedicated DeFi platform, and focus on expanding horizons into NFTs, Loopring has established itself as a top contender in the Layer 2 landscape. As DeFi matures and the demand for efficient, user-friendly blockchain solutions soars, keep Loopring firmly on your radar for 2024 and beyond. It’s poised to ring in a new era of high-performance blockchain interactions, shaping the future of how we engage with decentralized finance and beyond.

Current Price	$0.15
Market Cap	$207 million
Circulating Supply	1.36 billion LRC
Total Supply	1.374 billion LRC
Vol (24H)	$20 million
Change (YTD)	-49%
Founder	Daniel Wang

• Loopring, a layer 2 crypto project, has underperformed relative to its peers. Despite a predominantly bearish 2023, LRC price experienced a significant recovery during “Uptober,” forming a bullish rounding bottom pattern on the chart.
• In March 2024, LRC price saw an impressive 140% rally, although this surge was quickly followed by heavy selling pressure.
• While the token has entered a new bullish phase, LRC price still faces substantial obstacles to fully break free from its bearish trends and sustain a strong rally. 
• For a continued upward move, LRC price must overcome resistance zones at $0.2, $0.25, and eventually target $1 later in the year for older LRC holders to see positive returns.
• On the downside, LRC price is expected to find support around the S2 Fibonacci pivot level, near $0.12.

Conclusion

The tokens highlighted above present diverse innovations in the Layer 2 crypto landscape for 2024. Despite varied price movements, these projects signify transformative potential. From Polygon’s scalability solutions to ImmutableX’s NFT gaming focus, each token showcases unique strengths. Optimism and Mantle emphasize Ethereum’s scaling and cross-chain capabilities, while Arbitrum, Loopring, and SKALE contribute with distinct technological approaches. As 2024 progresses, these Layer 2 projects are poised to shape blockchain innovation, offering investors and enthusiasts a dynamic landscape to watch for transformative developments.

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