What Is Layer 2 (L2)?

Layer 2 refers to any off-chain network, system, or technology built on top of a blockchain (commonly known as a layer-1 network) that enhances the capabilities of the underlying base layer network. Layer 2 networks offer improvements such as higher transaction throughput. A core requirement for a network, system, or technology to be considered Layer 2 is that it inherits the security of the blockchain it is built upon. Transaction data must be verified and confirmed by the underlying blockchain network, not a separate set of nodes. For example, sidechains are often not considered Layer 2 because they typically deploy their own consensus mechanisms and validators, resulting in different security guarantees than the base layer chain.

For blockchains that prioritize decentralization and security over scalability, Layer 2 solutions provide greater transaction throughput, which can lead to lower fees. Layer 2 is seen as a solution to scalability challenges, enabling fast and scalable transactions without compromising decentralization or security.

Top Layer 2 (L2) Coins by Market Cap

Below is a list of the top Layer 2 coins ranked by market capitalization, along with brief details about each project:

1. Mantle (MNT) Mantle is a Layer 2 solution designed to scale Ethereum. It offers fast and low-cost transactions, providing developers with a high-performance platform. Its modular architecture stands out.
2. Arbitrum (ARB) Arbitrum is an Ethereum-based Layer 2 solution that utilizes optimistic rollup technology. It is popular for decentralized applications due to its low transaction fees and high throughput.
3. POL (ex-MATIC) POL (formerly MATIC) is the native token of the Polygon network, designed to enhance Ethereum’s scalability. It supports a broad ecosystem with fast transactions and low costs.
4. Optimism (OP) Optimism is another optimistic rollup solution that boosts Ethereum’s scalability. It provides developers and users with an efficient experience through low-cost transactions.
5. Stacks (STX) Stacks is a Layer 2 solution that adds smart contract and decentralized application support to the Bitcoin blockchain. It leverages Bitcoin’s security to develop innovative applications.
6. Immutable (IMX) Immutable X is an Ethereum-based Layer 2 solution focused on NFTs and gaming. It offers fast and secure transactions with zero gas fees.
7. Starknet (STRK) Starknet is a Layer 2 network that scales Ethereum using zero-knowledge (ZK) rollup technology. It provides high security and low transaction costs.
8. ZKsync (ZK) ZKsync enhances Ethereum’s scalability with zero-knowledge technology. It offers fast, secure, and low-cost transactions on a user-friendly platform.
9. Wrapped Ether (Mantle Bridge) (WETH) Wrapped Ether (WETH) is a tokenized version of Ethereum used within the Mantle network. It facilitates liquidity and seamless transactions in Mantle’s Layer 2 ecosystem.
10. Movement (MOVE) Movement is an Ethereum-based Layer 2 solution that delivers high-performance data transfer and transaction speed. It stands out with its innovative technologies.

Layer 2 solutions address blockchain scalability issues, offering faster, more cost-effective, and secure transactions. Ranked by market cap, these projects enhance the potential of leading networks like Ethereum and Bitcoin, shaping the future of the decentralized ecosystem. These coins continue to provide innovative opportunities for both developers and users.

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The post What Are the Top Layer 2 (L2) Coins? appeared first on Coin Engineer.

Bitcoin (BTC) recently retreated from $64,000 to $58,000, struggling to reclaim the $60,000 mark. Despite the overall negative market sentiment, certain altcoins have managed to stand out by showing notable gains.

These altcoins have attracted significant attention from bullish investors throughout the day.

So, which altcoins have managed to defy the broader market trend and climb to the top?

Dogs (DOGS)

Dogs (DOGS), a memecoin that has quickly gained millions of users thanks to its platform built on Telegram, has emerged as the top performer of the day. This popular token within the Ton ecosystem saw a remarkable 22.7% surge in the last 24 hours.

According to CoinGecko, DOGS’ market cap has reached $780 million, with a trading volume of $2.3 billion over the past day.

Immutable (IMX)

Immutable (IMX), a platform for creating NFTs on the blockchain, recorded a 9% increase over the past 24 hours, making it the second-best performing altcoin of the day.

IMX’s market cap now stands at $2.33 billion, with an 80 million-dollar trading volume in the last 24 hours.

LayerZero (ZRO)

LayerZero (ZRO), a Web3 project that facilitates data transfer between blockchains while supporting decentralization, was among the top gainers today. ZRO, one of the newer players in the crypto market, saw its value rise by 8% in the last 24 hours.

With a trading volume of $100 million in the past day, ZRO has reached a market cap of $450 million.

Sundog (SUNDOG)

Sundog (SUNDOG), one of the first memecoins launched by Sun Pump on the Tron blockchain, continues to remain in the spotlight. This memecoin has quickly gained popularity and was among the top performers of the day, climbing 6.1% over the past 24 hours.

SUNDOG’s market cap has exceeded $250 million, with a trading volume of $104 million in the last 24 hours.

Chromia (CHR)

Chromia (CHR), a blockchain initiative developed using a programming language called Rell, saw a 7.7% increase in value over the past 24 hours, making it one of the standout altcoins of the day.

CHR’s market cap has reached $172 million, with $39 million in trading volume over the last day.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post Which Altcoins Are Bullish Amidst the Crypto Market Downturn? appeared first on Coin Engineer.

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23rd of January, Tuesday (Altcoin Unlocks)

• dYdX (DYDX)
  • Market Cap: $866.39 million
  • Unlocked Token Amount: $17.82 million (2.05% of market cap)
• Bonfida (FIDA)
  • Market Cap: $33.04 million
  • Unlocked Token Amount: $5.18 million (15.70% of market cap)

January 24, Wednesday

• Ribbon Finance (RBN)
  • Market Cap: $292.66 million
  • Unlocked Token Amount: $11.67 million (3.99% of market cap)
• GameSwift (GSWIFT)
  • Market Cap: $31.51 million
  • Unlocked Token Amount: $1.55 million (4.91% of market cap)
• Mask Network (MASK)
  • Market Cap: $344.92 million
  • Unlocked Token Amount: $2.30 million (0.67% of market cap)

January 25, Thursday

• Pintu Token (PTU)
  • Market Cap: $36.05 million
  • Unlocked Token Amount: $2.45 million (6.74% of market cap)
• H2O Dao (H2O)
  • Market Cap: $29.10 million
  • Unlocked Token Amount: $4.29 million (14.77% of market cap)
• TENET (TENET)
  • Market Cap: $21.74 million
  • Unlocked Token Amount: $2.51 million (11.56% of market cap)

 26th of January, Friday

• GateToken (GT)
  • Market Cap: $471.45 million
  • Unlocked Token Amount: $31.66 million (6.72% of market cap)
• Dogechain (DC)
  • Market Cap: $20.66 million
  • Unlocked Token Amount: $2.63 million (12.86% of market cap)
• Immutable (IMX)
  • Market Cap: $2.59 billion
  • Unlocked Token Amount: $71.92 million (2.79% of market cap)

January 27, 2024

• Flow (FLOW)
  • Market cap: $1.2 billion
  • Unlocked token amount: $5.59 million (0.47% of market cap)
• Axelar (AXL)
  • Market cap: $489.77 million
  • Unlocked token amount: $22.42 million (4.57% of market cap)
• Yield Guild Games (YGG)
  • Market cap: $154.26 million
  • Unlocked token amount: $5.42 million (3.56% of market cap)

28 of January 2024 (Major Altcoin Unlock)

• Fetch.ai (FET)
  • Market cap: $506.20 million
  • Unlocked token amount: $2.04 million (0.40% of market cap)
• Chromia (CHR)
  • Market cap: $201.27 million
  • Unlocked token amount: $1.44 million (0.72% of market cap)
• Maverick Protocol (MAV)
  • Market cap: $130.08 million
  • Unlocked token amount: $5.76 million (4.43% of market cap)
• Open Campus (EDU)
  • Market cap: $153.58 million
  • Unlocked token amount: $6.08 million (3.96% of market cap)

Analysis

As a general rule, large token unlocks can lead to selling pressure on the underlying asset. This is because investors who have been holding tokens locked up are now able to sell them on the open market. In the case of the altcoins listed above, the unlocked token amounts represent a significant percentage of the respective market caps. This suggests that the selling pressure from these unlocks could be significant.

Of course, the impact of token unlocks will vary depending on a number of factors, including the underlying fundamentals of the asset, the overall market sentiment, and the timing of the unlock. However, it is important to be aware of the potential for selling pressure from token unlocks when making investment decisions.

The post Major Altcoin Unlocks: Week of January 22, 2024 appeared first on Coin Engineer.