As the market for cryptocurrency is gearing up for the next bull market, Ethereum Layer 2 protocols are becoming key participants in Blockchain’s ecosystem. These new solutions are expected to solve the scalability issues of Ethereum and improve customer experience. In this article we’ll look at the five most exciting Ethereum Layer 2 protocols poised to rise during the upcoming bull market.
These protocols will transform the way transactions are handled within the Ethereum network which will make it faster more efficient and more cost-effective while maintaining the fundamental values of the security of decentralization and secure transactions. Come along as we dive deep into what’s to come of Ethereum as well as it’s Layer Two technologies that are expected to define the future of Ethereum.
Most Ethereum layer 2 tokens have been hit hard by the bear market, and many of them are trading at massive discounts from their all-time highs. This post’s five most promising layer 2s have respectable market caps, proven track records, and support from bullish price predictions.
Top 5 Ethereum Layer 2 Protocols Are:
1. Polygon ($MATIC)
Market Capitalisation: $5.1 billion
Total Value Locked: $800 million
Current Price: $0.55
The Polygon ($MATIC) zkRollups is one of the most successful projects of its type. It has a total value locked (TVL) of just under $800 million, and its market capitalization puts it just outside of the top 10 cryptos on the entire market. Polygon has a solid track record for security, and if you’ve ever used this layer 2 you’ll know how fast and cheap it is even when the Ethereum mainnet is congested.
$MATIC trades at $0.55, which is a 90% discount on its all-time high, as Polygon ($MATIC) was hit badly in 2022, especially following the FTX collapse. Most price predictions, including CoinCodex and AMBCrypto, are bullish on MATIC in the long run and expect it to be trading above $1 and possibly even $2 in the next 1-2 years.
Visit Matic Official Website to explore it more.
2. Arbitrum ($ARB)
Market Capitalisation: $1.2 billion
Total Value Locked: $1.7 billion
Current Price: $1
Arbitrum ($ARB) is one of the most successful Ethereum layer 2 optimistic roll-up protocols. Despite launching less than one year ago, it already has over $1.5 billion TVL. $ARB has maintained a surprisingly stable price despite the general market volatility, with a trading range of $1 – $1.5. Arbitrum price predictions are very bullish. AMBcrypto expects its price to double in the next two years, and Coincodex expects it to return 30% before the end of 2023.
Visit Arbitirium’s Official Website to explore it more.
3. Optimism ($OP)
Market Capitalisation: $1.1 billion
Total Value Locked: $725 million.
Current Price: $1.55
Optimism ($OP), as the name suggests, is an optimistic Ethereum Layer 2 scaling solution. $OP is one of the leading Ethereum layer 2 tokens with a market cap of over $1 billion, and the network has $725 million in TVL. $OP hit its all-time high six months ago and has since dropped by over 50%. Price prediction analysts do expect $OP to recover its all-time high of $3.22 eventually. Techopedia has a high price target of $6 in 2025, requiring $OP to be 6X its current price.
Visit Optimism Official Website to explore it more.
Market capitalization: $680 million
Total Value Locked: $32 million
Current Price: $0.6
ImmutableX ($IMX) is a zkRollup solution that focuses on NFT minting and blockchain gaming. Since its launch in late 2021, ImmutableX has enabled millions of NFT trades at almost no cost. The issue with this project is that it does depend on the high NFT trading volume on Ethereum. At the moment, the NFT market is in the dumps, so betting on ImmutableX means betting on the NFT market recovering. Price predictions for $IMX are mixed, but analysts who believe the NFT market will recover in 2023 are optimistic that this Ethereum layer 2 could generate some decent returns.
Visit Immutable’s Official Website to explore it more.
5. Mantle ($MNT)
Market Capitalisation: $1.3 billion
Total Value Locked: $37 million
Current Price: $0.4
Mantle ($MNT) is an optimistic roll-up of the Ethereum Layer 2 protocol launched in 2023. Mantle was created by BitDAO, a decentralized autonomous organization (DAO), and launched in July on the ByBit exchange. Despite being only a month old, the project has grown its TVL to over $30 million, and its market capitalization is well above $1 billion. Several price prediction experts expect MNT to post massive gains in the medium and long term. Ovenadd expects $MNT to be more than 5x in the coming year, and Coincodex expects it to double before the end of 2025.
Visit Mantle’s Official Website to search it more.
Ethereum’s dominance in DeFi, NFTs, and just about any smart contract-based industry appears destined to continue for years to come. However, the network needs to get faster and cheaper if mass adoption is the goal, which is why so many layer 2 solutions have been developed over the past few years. If the next bull run includes more transactions flooding the Ethereum blockchain, then the most successful layer 2 scaling solutions could see huge gains, as we saw in 2021.
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