Ethereum Layer 2 scaling solutions have been becoming popular. The L2 solutions scale applications and handle transactions off Ethereum. In doing so, they raise the transaction’s throughput and cut the gas fees. But do you know which tokens of Ethereum L2 solutions to buy next year? Read on:
Polygon (MATIC)
Polygon is easily the most popular L2 scaling solution on Ethereum. Polygon is already tapped by many projects, including Sushiswap, and continues to attract firms building into the Web3 and metaverse. Projects enter Ethereum through Polygon due to its highly scalable and fast transactions. There are over 7,000 transactions per second on a single sidechain on Polygon’s internal testnet. This is significantly higher than 14 TPS on Ethereum.
With the growing popularity of Polygon, investing in its native token, MATIC, makes a lot of sense. The cryptocurrency trades at $0.9, compared to its all-time high of nearly $3.0 last year. The cryptocurrency has been on a slow recovery, offering a glimpse of its former self that investors could love. MATIC is currently ranked #10 on CoinMarketCap with a value of $7.89 billion.
Where to buy MATIC
Loopring (LRC)
Loopring is another Ethereum L2 you could consider investing in. It is an open-source and non-custodial exchange that also dubs as a payment protocol. The exchange is powered by hybrid scaling solutions, which scale the Ethereum network 1000 times.
Loopring price (LRC/USD) is currently $0.2 and is ranked at #89 with a market cap of $324.5 million. The cryptocurrency remains in an intensely bear market and is not yet in a good position to buy. However, the return of a bull should wake up bulls and drive LRC higher.
Where to buy LRC
Optimism (OP)
Optimism is an L2 that uses optimistic rollups to support Dapps on Ethereum. The network speeds up transactions and reduces costs on the Ethereum blockchain.
Optimism token (OP) was a sensational token during its airdrop in June 2022. It rose afterwards to a high of $2.2 before cooling off. Even as the bear market continues to ravage cryptocurrencies, Optimism is making slow and sure recoveries and trades at $1.13. With a market cap of $264.3 million, OP is ranked at #104 by market cap.