Top Layer 2 Scaling Tokens to Invest

Layer 2 scaling solutions are transforming the blockchain landscape by improving the scalability and efficiency of existing networks like Ethereum. These solutions enable faster transactions, lower fees, and enhanced user experiences while maintaining the security and decentralization that blockchain technology promises. 

Collectively the TVL of all Layer 2 chains is worth 8.98 Billion.

By leveraging off-chain or rollup technologies, Layer 2 scaling offers:

• Increased transaction throughput
• Lower transaction fees
• Enhanced user experience
• Reduced congestion on main blockchain networks

With the Layer 2 scaling sector continuing to grow, many investors are turning their attention to tokens that power these solutions. In this article, we will explore the top Layer 2 scaling tokens to invest in for 2024, each with strong use cases, significant market potential, and a solid foundation supporting the scalability of blockchain ecosystems.

What are Layer 2 Scaling Tokens?

Layer 2 scaling tokens are cryptocurrencies that fuel protocols designed to scale blockchain networks by offloading much of the transaction processing to secondary layers. These solutions enhance the performance of Layer 1 blockchains (such as Ethereum) without sacrificing security or decentralization. Layer 2 scaling tokens are typically used for governance, transaction fees, staking, and facilitating liquidity on Layer 2 networks.

As the demand for faster and cheaper transactions continues to grow, Layer 2 solutions are becoming increasingly important in addressing the scalability challenges faced by major blockchain platforms. This rising demand creates substantial potential for Layer 2 scaling tokens, making them attractive investment opportunities.

You can track Layer 2 ecosystem growth and metrics through platforms like L2Beat.

Now, let’s dive into the top Layer 2 scaling tokens you should consider for your portfolio in 2024:

1. Polygon (MATIC)

Polygon is one of the most popular Layer 2 scaling solutions for Ethereum, providing a framework for building and connecting Ethereum-compatible blockchain networks. The native token, MATIC, plays a vital role in securing the network through staking, paying transaction fees, and participating in governance decisions.

Polygon’s ability to offer high-speed and low-cost transactions has made it a go-to solution for many decentralized applications (dApps), leading to a thriving ecosystem of projects built on the network.

• Market Cap: $7 billion+
• Use Case: Governance, staking, transaction fees
• Invest Tip: With its broad adoption and continuous development, MATIC remains one of the top Layer 2 tokens, providing long-term growth potential as Ethereum scales.

2. Arbitrum (ARB)

Arbitrum is a Layer 2 scaling solution designed to improve the speed and efficiency of Ethereum smart contracts. By using rollups, Arbitrum moves transactions off-chain, reducing gas fees and transaction times without compromising security. The ARB token is used for governance within the Arbitrum ecosystem, giving holders a say in protocol upgrades and changes.

As one of the most widely adopted Layer 2 solutions, Arbitrum has established partnerships with several leading DeFi projects, making it a crucial player in Ethereum’s scaling strategy.

• Market Cap: $2 billion+
• Use Case: Governance, transaction fees
• Invest Tip: ARB’s increasing adoption by DeFi protocols positions it as a key Layer 2 token with significant potential for future growth.

3. Optimism (OP)

Optimism is another Layer 2 scaling solution for Ethereum, utilizing optimistic rollups to significantly reduce transaction costs and increase throughput. The native OP token is used for governance and staking within the Optimism ecosystem. Optimism’s design allows for minimal changes to Ethereum smart contracts, making it easier for developers to migrate their dApps to the Layer 2 network.

With its user-friendly integration and focus on Ethereum compatibility, Optimism has gained traction among both developers and users, establishing itself as a prominent Layer 2 solution.

• Market Cap: $1 billion+
• Use Case: Governance, staking, transaction fees
• Invest Tip: Optimism’s rapid growth and continuous improvements make OP a promising investment for those looking to capitalize on Ethereum’s scaling needs.

4. Loopring (LRC)

Loopring is a Layer 2 scaling solution that focuses on enabling fast and cheap decentralized exchanges (DEXs) using zkRollups. The Loopring protocol allows users to trade assets directly from their wallets without the need for centralized intermediaries. The LRC token is used for governance, staking, and transaction fees within the Loopring network.

Loopring’s combination of zkRollups and decentralized trading has positioned it as a key player in the Layer 2 ecosystem, particularly for users seeking low-cost, high-speed transactions on Ethereum.

• Market Cap: $600 million+
• Use Case: Governance, staking, transaction fees
• Invest Tip: LRC’s focus on decentralized exchanges and zkRollups makes it an attractive Layer 2 token for investors looking to capitalize on the future of decentralized trading.

5. Immutable X (IMX)

Immutable X is a Layer 2 scaling solution designed specifically for NFTs and gaming applications on Ethereum. Using zkRollups, Immutable X enables fast, gas-free transactions for minting and trading NFTs. The IMX token is used for governance, staking, and transaction fees within the network.

As the demand for NFTs and blockchain-based gaming continues to grow, Immutable X is well-positioned to become a leading platform in this space, offering scalability solutions tailored to the unique needs of the NFT market.

• Market Cap: $700 million+
• Use Case: Governance, staking, transaction fees
• Invest Tip: With the rise of NFTs and blockchain gaming, IMX is a strong contender for investors looking to tap into these rapidly growing sectors.

6. zkSync Token (ZKS)

zkSync is a Layer 2 scaling solution that uses zkRollups to bring scalability to Ethereum while preserving security and decentralization. The zkSync Token (ZKS) plays a crucial role in the network, being used for governance, staking, and transaction fees. zkSync’s innovative approach to Layer 2 scaling has attracted a lot of attention in the crypto space, particularly for its ability to process thousands of transactions per second at a fraction of Ethereum’s typical fees.

• Market Cap: $500 million+
• Use Case: Governance, staking, transaction fees
• Invest Tip: With its advanced zkRollups technology, zkSync is a leading solution for scaling Ethereum, making ZKS a valuable investment for those interested in Layer 2 innovations.

7. Boba Network Token (BOBA)

Boba Network is a Layer 2 scaling solution that enhances Ethereum’s scalability using optimistic rollups. BOBA, the native token, is used for governance and paying transaction fees on the network. Boba Network’s hybrid approach allows developers to build dApps that require faster, cheaper transactions while maintaining the security of the Ethereum mainnet.

• Market Cap: $300 million+
• Use Case: Governance, transaction fees
• Invest Tip: With its unique hybrid solution, BOBA offers significant potential for growth as more developers look to scale their Ethereum dApps.

8. Cartesi (CTSI)

Cartesi is a Layer 2 scaling solution designed to make blockchain development more accessible by enabling developers to code with traditional programming languages like Python and C++. The CTSI token is used for governance, staking, and transaction fees within the Cartesi ecosystem. By offering a more familiar development environment, Cartesi aims to attract a broader range of developers to the blockchain space.

• Market Cap: $200 million+
• Use Case: Governance, staking, transaction fees
• Invest Tip: Cartesi’s focus on simplifying blockchain development gives CTSI long-term potential, particularly as the demand for decentralized applications continues to grow.

9. Celer Network (CELR)

Celer Network is a Layer 2 scaling platform that enables fast, low-cost transactions across various blockchain networks. The CELR token is used for staking, governance, and liquidity mining. Celer’s unique inter-chain operability allows it to support a wide range of decentralized applications, making it a versatile solution for blockchain scalability.

• Market Cap: $150 million+
• Use Case: Governance, staking, liquidity mining
• Invest Tip: CELR’s cross-chain capabilities and scalability solutions make it a valuable asset for investors interested in the broader blockchain ecosystem.

10. SKALE Network (SKL)

SKALE Network is a Layer 2 scaling solution designed to enhance the performance of Ethereum by providing elastic sidechains. SKL, the native token, is used for staking, transaction fees, and governance within the SKALE ecosystem. SKALE’s elastic sidechains allow for fast, low-cost transactions, making it a flexible solution for developers looking to build scalable dApps on Ethereum.

• Market Cap: $100 million+
• Use Case: Governance, staking, transaction fees
• Invest Tip: With its focus on providing flexible scaling solutions, SKL is a promising investment for those looking to support Ethereum’s growth and scalability.

Conclusion: Investing in Layer 2 Scaling Tokens with Klink

As the demand for scalable blockchain solutions continues to rise, investing in Layer 2 scaling tokens presents a unique opportunity to be part of the next phase of blockchain development. Platforms like Klink Finance make it easy to invest in tokens like ARB, offering secure and risk-free ways to grow your portfolio.

Read more about how to swap your ARB tokens with USDT or USDC…

Whether you’re looking to stake tokens, participate in daily prize pools, or complete tasks to earn crypto, Klink provides multiple ways to invest in the growing world of Layer 2 scaling solutions.

For real-time data on these tokens, you can check platforms like CoinGecko and CoinMarketCap to track their performance and stay updated on market trends.