Top 7 Layer-2 Crypto Coins With 50X Return For 2024

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Web3Prophet

11 min readMay 13, 2024

In 2024, the cryptocurrency market is abuzz with the potential of Layer-2 solutions to revolutionize scalability and transaction speeds. Layer-2 solutions are off-chain protocols that work alongside the main blockchain to enhance its capabilities. Among these solutions, several Layer-2 crypto coins stand out as potential game-changers, offering investors the opportunity for significant returns. These coins are not only technologically advanced but also have strong fundamentals and growing communities backing them.

As the demand for faster and cheaper transactions increases, these Layer-2 projects are poised to capture a significant market share and potentially deliver a 50X return on investment. By understanding the unique features and value propositions of these coins, investors can position themselves to benefit from the continued growth and adoption of Layer-2 solutions in the cryptocurrency ecosystem.

What are Layer-2 Crypto Coins?

Layer-2 crypto coins are cryptocurrencies that operate on a secondary protocol layer built on top of a primary blockchain network, such as Ethereum. These secondary layers are designed to address scalability issues by processing transactions off-chain or in a more efficient manner than the main blockchain. Layer-2 solutions aim to improve the speed and cost-effectiveness of transactions, making them more scalable and accessible to a larger user base.

By conducting transactions off-chain or through more efficient methods, Layer-2 solutions can significantly increase the throughput of the underlying blockchain network. Examples of Layer-2 solutions include sidechains, state channels, and plasma chains, each with its own approach to improving scalability. These Layer-2 crypto coins often have their own native tokens, which are used to facilitate transactions and interact with the secondary layer. Overall, Layer-2 solutions play a crucial role in improving the scalability and usability of blockchain networks, making them a key focus area for development in the cryptocurrency space.

Why Layer-2 Solutions are Important in 2024?

Layer-2 solutions are critical in 2024 due to several key reasons:

➥ Scalability: Layer-2 solutions help address the scalability issues of blockchain networks like Ethereum, allowing them to process more transactions per second. This is crucial as decentralized applications (dApps) gain popularity and need to handle increasing transaction volumes.

➥ Cost-Effectiveness: By offloading transactions from the main blockchain, Layer-2 solutions can reduce gas fees, making transactions more affordable for users. This is particularly important as high gas fees can deter users from using certain dApps or executing transactions.

➥ Improved User Experience: Faster transaction speeds and lower fees enhance the overall user experience, making decentralized applications more competitive with centralized alternatives. This is essential for the mainstream adoption of blockchain technology.

➥ Interoperability: Layer-2 solutions can enhance interoperability between different blockchains, allowing for a more seamless transfer of assets and data. This is crucial for the growth of the decentralized finance (DeFi) ecosystem and other cross-chain applications.

➥ Environmental Impact: By reducing the burden on the main blockchain, Layer-2 solutions can contribute to reducing the environmental impact of blockchain networks, especially those using proof-of-work (PoW) consensus mechanisms.

Overall, Layer-2 solutions play a vital role in addressing the scalability, cost, user experience, interoperability, and environmental challenges faced by blockchain networks in 2024 and beyond.

Factors to Consider When Choosing Layer-2 Crypto Coins

When choosing Layer-2 crypto coins, consider the following factors:

Scalability Solution: Different Layer-2 solutions use various scaling techniques such as sidechains, state channels, and Plasma. Understand the scalability approach of the Layer-2 solution and how it fits your needs.
Security: Security is paramount. Look for Layer-2 solutions that provide strong security mechanisms to protect against attacks and ensure the safety of your assets.
Decentralization: Consider the level of decentralization offered by the Layer-2 solution. A more decentralized solution is often preferred for its resilience and censorship resistance.
Token Economics: Examine the token economics of the Layer-2 solution, including the token distribution, utility, and potential for value appreciation. A well-designed token economy can incentivize network participants and drive adoption.
Adoption and Ecosystem: Check the adoption and development activity within the Layer-2 solution’s ecosystem. A vibrant ecosystem with active developers and users is more likely to succeed in the long term.
Interoperability: Consider the interoperability features of the Layer-2 solution. Compatibility with other blockchains and Layer-2 solutions can expand its utility and use cases.
Community Support: A strong and supportive community can contribute to the success of a Layer-2 solution. Look for projects with an engaged community that actively participates in the development and promotion of the solution.
Usability and User Experience: User-friendly interfaces and smooth user experience are essential for mass adoption. Choose Layer-2 solutions that prioritize usability and provide intuitive tools for users.
Cost: Evaluate the cost-effectiveness of using the Layer-2 solution, including transaction fees and other associated costs. A cost-effective solution can lower barriers to entry and attract more users.
Compliance: Ensure that the Layer-2 solution complies with relevant regulations and standards. Compliance is crucial for long-term sustainability and mainstream adoption.

By considering these factors, you can make an informed decision when choosing Layer-2 crypto coins that best suit your needs and preferences.

Top 7 Layer-2 Crypto Coins

1. Polygon (MATIC)

Polygon (MATIC) is a Layer-2 scaling solution for the Ethereum blockchain. It aims to address the scalability issues that Ethereum faces, such as slow transaction times and high gas fees. Polygon does this by providing a sidechain network that runs parallel to the Ethereum mainnet. Transactions on the Polygon network are much faster and cheaper than on the Ethereum mainnet.

MATIC is the native token of the Polygon network. It is used to pay for transaction fees on the network and to participate in its governance. MATIC is also used to stake on the network, which helps to secure it.

Market Performance:

Current Price: $0.69.
Market Cap: $6.8 — $6.9 Billion (Ranks around #18–20)
Trading Volume: $185–190 Million (last 24 hours)

Here are some of the benefits of using Polygon:

Faster transaction times: Transactions on the Polygon network are typically much faster than on the Ethereum mainnet.
Lower gas fees: Gas fees on the Polygon network are significantly lower than on the Ethereum mainnet.
Increased scalability: Polygon can handle a much higher volume of transactions than the Ethereum mainnet.
Security: Polygon is secured by a Proof-of-Stake (PoS) consensus mechanism.

Overall, Polygon is a promising solution for scaling the Ethereum blockchain. It offers several benefits over the Ethereum mainnet, including faster transaction times, lower gas fees, and increased scalability.

2. Optimism (OPT)

Optimism (OPT) is another Layer-2 scaling solution for the Ethereum blockchain, similar to Polygon (MATIC). Here’s a breakdown of Optimism (OPT):

What it Does:

Optimism aims to tackle Ethereum’s limitations of slow transaction speeds and high gas fees.
It achieves this by utilizing a technique called Optimistic Rollups. Transactions are processed off-chain on Optimism for speed and cost-effectiveness but are ultimately secured by the Ethereum mainnet for security.

Key Features:

Faster Transactions: Transactions on Optimism are significantly faster compared to Ethereum’s mainnet.
Lower Fees: Gas fees on Optimism are a fraction of what you’d pay on the Ethereum mainnet.
Security: Inherits security from the Ethereum blockchain through Optimistic Rollups.
EVM Compatibility: Designed to be compatible with Ethereum Virtual Machine (EVM), making it easy for developers to deploy existing Ethereum smart contracts on Optimism.

OPT Token:

The native token of Optimism is OPT.
It plays a crucial role in governing the network and staking to secure it.
OPT is also used for paying transaction fees on the Optimism network.

Market Performance:

Price: Around $2.50.
Market Cap: Roughly $2 Billion (ranking around #70–80).

3. Arbitrum (ARB)

Arbitrum (ARB) is another Layer-2 scaling solution for the Ethereum blockchain, joining Polygon (MATIC) and Optimism (OPT) in the quest for faster transactions and lower fees. Here’s a look at Arbitrum:

What it Does:

Arbitrum utilizes a technology called Optimistic Rollups, similar to Optimism, to achieve scalability. Transactions are processed off-chain for speed and cost-efficiency but are ultimately secured by the Ethereum mainnet.

Key Features:

Faster Transactions: Like its Layer-2 counterparts, Arbitrum offers significantly faster transactions compared to the Ethereum mainnet.
Lower Fees: Gas fees on Arbitrum are much lower than on Ethereum’s mainnet.
Security: Inherits security from the Ethereum blockchain through Optimistic Rollups.
EVM Compatibility: Compatible with the Ethereum Virtual Machine (EVM), allowing for easy deployment of existing Ethereum smart contracts on Arbitrum.

ARB Token:

The native token of Arbitrum is ARB.
It serves governance purposes, allowing holders to vote on proposals that shape the future of the network.
ARB is also used for staking to contribute to the security of the network.

Market Performance:

Current Price: ~$1.04.
Market Cap: ~$2.76 Billion (ranking around #47)
Trading Volume: ~$273 Million.

4. zkSync (ZKS)

zkSync (ZKS) is another Layer-2 scaling solution for the Ethereum blockchain, aiming to address the network’s limitations of slow speeds and high fees. Here’s a breakdown of zkSync:

What it Does:

Unlike Arbitrum and Optimism which use Optimistic Rollups, zkSync leverages a different technology called Zero-Knowledge Rollups (ZK-Rollups).
With ZK-Rollups, zkSync bundles hundreds of transactions off-chain, but instead of relying on checkpoints for fraud detection, it uses cryptographic proofs to verify the validity of the transactions.

Key Features:

Faster Transactions: Similar to other Layer-2 solutions, zkSync offers significantly faster transactions compared to the Ethereum mainnet.
Lower Fees: Gas fees on zkSync are designed to be much lower than on Ethereum’s mainnet.
Security: Inherits security from the Ethereum blockchain through ZK-Rollups. ZK-Rollups are theoretically more secure than Optimistic Rollups as they provide cryptographic verification of every transaction.
Focus on Decentralization: The zkSync team emphasizes maintaining Ethereum’s core values of decentralization and self-sovereignty even at scale.

5. Loopring (LRC)

Loopring (LRC) is indeed a Layer-2 scaling solution for the Ethereum blockchain, just like the ones you mentioned previously. Here’s a breakdown of Loopring:

What it Does:

Loopring uses a zkRollup technology similar to zkSync to bundle transactions off-chain for faster processing and lower fees compared to the Ethereum mainnet.

Key Features:

High Throughput: Loopring boasts a high transaction processing capacity, reaching speeds of up to 2,025 transactions per second.
Low Fees: Transactions on Loopring incur significantly lower gas fees compared to the Ethereum mainnet.
Security: Inherits security from the Ethereum blockchain through zkRollups.
Decentralized Exchange Focus: Loopring is designed specifically for building decentralized exchanges (DEXs) that combine the benefits of centralized order matching with decentralized on-chain order settlement.

LRC Token:

Loopring has its own token, LRC.
LRC plays a crucial role in the Loopring ecosystem:
Protocol Fees: A portion of transaction fees on Loopring-powered DEXs is used to buy back and burn LRC tokens, reducing overall supply and potentially increasing its value.
Staking: LRC holders can stake their tokens to earn rewards and participate in governance decisions.

Market Performance:

Price: ~$0.25.
Market Cap: ~$6.8 Billion (ranking around #)
Trading Volume: ~$182 Million (last 24 hours)

6. StarkNet (STN)

StarkNet (STN) is a prominent player in the Layer-2 scaling solutions arena for the Ethereum blockchain. It tackles the challenges of slow transaction speeds and high gas fees on the Ethereum mainnet. Here’s a comprehensive look at StarkNet:

What it Does:

Unlike Loopring or zkSync which utilize zkRollups, StarkNet leverages a different scaling technology called Validity Rollups.
Validity Rollups, similar to zkRollups, process transactions off-chain for efficiency. However, instead of zk-SNARKs (zero-knowledge proofs) used in zkRollups, StarkNet relies on STARK proofs (Scalable Transparent Argument of Knowledge proofs) for verification.

Key Features:

Scalability: Achieves significant scalability by processing a massive volume of transactions off-chain.
Security: Inherits security from the Ethereum blockchain. STARK proofs offer strong cryptographic guarantees, ensuring the validity of transactions on the Layer-2 network.
Decentralization: Aims to be a permissionless and decentralized Layer-2 solution.
General Purpose: Designed to support a wide range of applications and functionalities beyond just decentralized exchanges (DEXs), unlike Loopring with its DEX focus.

7. Hermez Network (HEZ)

The landscape of Hermez Network (HEZ) has changed due to its merger with Polygon. Here’s a breakdown of the current situation:

Hermez Network (HEZ): Past and Present

Hermez Network was previously a Layer-2 scaling solution for Ethereum, utilizing zkRollup technology for faster transactions and lower fees.
It had its own native token, HEZ, used for fees, staking, and potentially governance.

Current Solution:

Polygon Hermez zk-Rollup is the current iteration that leverages the zkRollup technology from Hermez Network.
MATIC is the primary token used for this solution, including fees, staking, and potential governance.

Conclusion

In conclusion, the potential for 50X returns in 2024 among the top 7 Layer-2 crypto coins is an exciting prospect for investors. These coins represent a new wave of innovation in the cryptocurrency space, offering solutions to scalability and speed issues that have long plagued blockchain networks. While investing in cryptocurrencies always carries risks, the strong fundamentals and technological advancements of these Layer-2 projects make them promising candidates for significant growth.

As the crypto market continues to mature and mainstream adoption increases, these Layer-2 solutions could play a crucial role in shaping the future of decentralized finance (DeFi) and other blockchain-based applications. Investors looking to capitalize on this trend should conduct thorough research and consider diversifying their portfolios to mitigate risk. Overall, the outlook for these Layer-2 crypto coins in 2024 is optimistic, and they are certainly worth keeping an eye on as the year unfolds.

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