Zero-knowledge (ZK) scaling is a fast-growing concept in the blockchain industry. Its goal is to increase the overall throughput of blockchains and lower costs. They achieve this by recording the validity of rolled transfers processed on Ethereum. By so doing, it becomes possible for thousands of transactions to be done in a single second. Here are some of the best zk-rollups cryptocurrencies for 2022.
1. Polygon
Polygon is a leading layer-2 blockchain project that helps developers accelerate their projects. In the past few years, the number of developers who have embraced the network has been on a steady rise. They include developers like AAVE, Uniswap, and Curve Finance. According to DeFi Llama, the network has a total value locked (TVL) of over $4 billion.
Polygon’s initial product was a sidechain that helped boost speeds and lower cost of transactions. In 2021, the developers launched Polygon Hermez, which is an open-source zk-rollup that is optimized for secure, low-cost, and usable token transfers on the wings of Ethereum.
The MATIC price has struggled in the past few months. It has dropped by over 25% from the highest point in February. In the long term, however, the coin will likely rebound.
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2. Loopring
Loopring (LRC/USD) is another zk-rollup platform that tackles the challenge of high transaction costs when trading. It addresses the challenge where people using popular decentralized exchanges (DEXEs) pay a lot of fees. Through its platform, users pay less amount of money to trade and settle transactions.
Loopring also powers a liquidity pool platform that has millions of dollars in assets. For example, the ETH-USDC pair has over $34 million in liquidity while LRC to ETH has $20 million in liquidity.
The Loopring price has risen by more than 63% from its lowest level in February. Recently, however, it has lost momentum and is trading at $1.02. There is a likelihood that it will keep doing well in the coming months.
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3. Mina Protocol
Mina Protocol is another small but fast-growing blockchain project that aims to use the zk-rollup technology in scale. The coin has a market cap of over $1.5 billion while its creators have raised millions of dollars from investors.
While the Mina price has done well, the protocol is yet to launch. Instead, the developers have provided grants to over 1,100 developers to build their products. Therefore, there is a likelihood that the protocol will keep doing well in the future.