There's been a good deal of things happening with Ethereum this year. It starts to beg the question of some of these layer 2 tokens are really worth it anymore?
Layer twos mainly got their value back in the day when Ethereum was a proof of work system and fees were crazy high. They were born out of people wanting options outside of paying $50+ fees.
This is how Polygon (Matic) now POL was born but since then fees have reduced, Ethereum is now a proof of stake system and a lot of updates have been made to reduce fees and allow more through put on the Ethereum blockchain. Fees of today on Ethereum normally range around $1 per transaction still crazy high unless you have some serious cash you're transferring and can at times spike to over $2 but it's come a long way.
Ethereum also is traded now as a ETF making it much easier for people to get their hands on it and not pay transaction fees on the buying and selling of the asset.
There are however some great layer two options that seem to be doing rather well. In this article we are going to have a look and see what we can find out about them and if there could be good options.
Arbitrum
This token has had had a bit of a wild ride this year so far but then again what token hasn't. That alt coins season feels forever away! It was a token created in 2019 and raised over 140 million from many large cap investors.
Arbitrum is really 4 tokens in one and let me explain as every blockchain and system seems to have their own crazy rules these days.
The first Arbitrum one that supports zk rollups. Arbitrum Nitro allows developers to create startups otherwise know as layer three tokens and Arbitrum Nova which is a version optimized for gaming and social media as it's a faster chain the last is Stylus which allows the use of any coding language to be used.
It's primary goals right now is on Stylus to bring on more and more developers which is critical for the growth and use of the blockchain. The entire goal right now for this platform is scaling in both efficiency and also developers for new projects. It feels like a promising choice if it turns out some solid applications. As we have seen in the past a single high quality application has the ability to skyrocket the price of the native token it operates on.
BASE
Base is coinbases layer two token of the Ethereum blockchain but it's never gotten all that much love. However with a multi billion dollar company and the massive potential in revenue and traction it could bring to the company you can be sure they are not going to let this baby slide.
Base has had it's fair share of meme coin hype and a rather lackluster NFT launch but what else does it have going for it? BASE doesn't have it's own token though and was launched in 2023 just a little over a year ago. This makes people wonder if we are due for a token launch for this platform or not. However it's clearly stated that they will not launch their own token and this is most likely due to confusing SEC regulations that are keeping company's like Coinbase to take further action on projects like this.
Base is built on the Optimum network and it's why we saw a good amount of action and love for that blockchain early on. But those days have since dried up and the hype around it as well. But does that mean it should be counted out?
For myself I don't think so. Coinbase is massive, has won many lawsuits and is known world wide it's also a publicly traded company I don't see them dropping the ball on this one even if it's underwhelming always it feels like there should be growth there and some serious legit projects.
Optimism
This one got some of the biggest hype ever raising 178 million of funds and launched 2021 and layer two token support in 2022. Their goal is to build a super chain to create a massive network and layer threes are due to be released soon on the "super chain".
What's a layer two token of Ethereum you like?
*This article is for entertainment purposes only and is not financial advice. Do your own research before investing and understand the risks.
Posted Using InLeo Alpha