Layer 2 crypto are in high demand in the crypto space because of their high scalability and low prices. The potentials in these assets have moved investors to search for the best layer 2 crypto to buy for high-profit margins.
Network congestion coupled with slow transaction speed has been the babe on layer 1 blockchain like Ethereum. This challenge gives rise to the need to have layer 2 crypto that solve these problems by simply drawing traffic away from the underlying blockchain.
Furthermore, layer 2 crypto facilitate high transactions speed, enabling thousands of transactions to be processed within seconds while maintaining the blockchain’s security.
1. Polygon (MATIC)
To begin our best layer 2 crypto to buy, we have the Polygon Network. Formerly referred to as Matic Network, the network protocol has been on an upward trajectory in recent times.
Polygon is designed to bring scalability to the Ethereum network. Polygon does this by validating transactions off-chain before adding them back to the Ethereum mainnet.
Polygon remains one of the fastest scaling solutions around, capable of processing 65,000 transactions per second (TPS). The 14th ranked crypto asset, according to market cap, is trading in the green. MATIC price is up by 0.98% to $2.38 in the last 24 hours. The digital asset has gained 13.08% in the last 7 days.
Polygon has also introduced a new scaling solution called Plonky2. Plonky2 is a recursive snark that is about a hundred times faster than other available alternatives, and it is programmed to operate on the Ethereum network.
This innovation is a breakthrough that provides a pathway for another horizontal scaling of blockchain networks.
Polygon is also on the list of the top 10 coins held by the largest 1,000 Ethereum whales famously dubbed the ‘rich list’.
2. Loopring (LRC)
Loopring, one of the cryptocurrencies built on the Ethereum network, deserves mention among the best layer 2 cryptos to buy.
The open-source blockchain protocol is specially designed to facilitate the building of decentralised crypto exchanges. Loopring aims to merge both centralised order matching and decentralised on-blockchain order settlement to form a hybrid product showcasing the best aspects of both centralised and decentralised exchanges.
Loopring recently introduced Loophead NFTs to its growing community. There are about 10,000 of these dynamic Loophead NFTs that have been made available to members of the Loopring community.
The asset is also in the news for developing a decentralised exchange called Layerswap. This new development will save users about ten times the gas fees they would have paid using Ethereum.
Users now have the opportunity to move cryptos from Coinbase, Binance, KuCoin, or FTX to Loopring and other layer 2 protocols at a lightning-fast speed.
Loopring is also putting measures in place to roll out a decentralised autonomous organisation (DAO). With the DAO, community members will be able to vote on development and project implementations within the layer 2 blockchain protocol. At the time of writing, LRC has a market cap of 2.1 billion, up 4.48% in the last 24 hours. LRC is trading at $1.577.
3. Immutable X (IMX)
Premier layer two scaling platforms for non-fungible tokens (NFTs) on Ethereum, IMX is undoubtedly one of the best layer 2 crypto to buy for high-profit margins.
The digital asset has sealed many partnerships in recent times, which will further enhance the image of the blockchain protocol.
Immutable X, well-known as one of the big players in the NFT market, signed an agreement with PlanetQuest to bring a fantastic gaming experience to users.
With this deal in place, gamers will be in for a thrilling gaming experience beyond the play-to-earn game model. Players in this blockchain-based game will have access to NFT-represented entire planets that are upgradeable, and they can send invites to friends to participate in the exciting virtual world games.
The partnership comes with the promise that users will buy, sell, borrow, and also trade digital collectibles like gears and guns without paying gas fees. At press time, IMX is trading at $3.66, up 1.52% in the last 24 hours.
4. OMG Network (OMG)
One of the best layer 2 crypto to buy is OMG Network, formerly known as OmiseGo. This network protocol is non-custodial and built on the Ethereum blockchain.
This Ethereum scaling solution allows users to transfer Ethereum (ETH) and other ERC-20 tokens faster and cheaper when making transactions directly on the Ethereum network.
The network uses a scaling solution called MoreViable Plasma, which employs a sidechain model to group transactions off-chain into a batch, allowing it to verify all as a single transaction.
OMG Network believes that this technology can process thousands of transactions per second (TPS) on Ethereum.
In the last 24 hours, the trading volume of OMG is 482.29 million, up 21.37%. OMG is trading at $6.148 at press time.
5. Celer Network (CELR)
The Celer Network (CELR) is a layer-2 scaling solution handling transactions off-chain, making it one of the best layer 2 crypto to buy for high-profit margins.
The Celer blockchain protocol allows fast and secure off-chain transactions, including payments and smart contracts. The Celer Network is a member of the Polkadot ecosystem and aims to revolutionise decentralised applications (Dapps), thereby enabling efficient and productive outputs.
Celer Network yesterday announced the launch of the Celer Inter-chain Message (Celer IM) Framework.
The Celer IM brings a game-change for how multi-blockchain decentralised apps (dApps) can be built and deployed.
The Celer IM enables developers to build inter-chain-native dApps that has efficient liquidity utilisation, coherent application logic and shared states without having to deploy multiple copies of isolated smart contracts on different blockchains. Decentralised exchanges (DEXes) allow users to swap tokens across multiple chains from just one chain in a single transaction.
The Celer Network has a market cap of $479.4 million, up 11.20% in the last 24 hours. At press time, CELR is trading in the green and valued at $0.078.
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Source: https://insidebitcoins.com/news/5-best-layer-2-crypto-to-buy-for-long-term-returns-january-2022-week-2