Layer 2 solutions play a really important role when it comes to mass adoption of blockchain technology. Layer 2 solutions aim to solve the issues regarding transactions speed and scalability. All of the following layer 2 projects solve real issues and also propose concrete solutions to problems that can not be solved in any other, at least in the short term.
Polygon (MATIC) is a structured Ethereum scaling project designed to bring efficient, low-cost, and fast blockchain infrastructure. Polygon is actually the largest layer 2 project in the world for Ethereum. In total, more than 130 DeFi protocols are built on Polygon with a TVL of over $4B.
The market cap of Polygon (as of Feb. 2022) is around $10B. This means Polygon is the 17th biggest cryptocurrency at this moment.
Loopring is quite different compared to Polygon. The platform is mostly used to manage a decentralized exchange (DEX). Loopring allows users to trade cryptocurrencies in a decentralized way without any intermediary. This makes trading faster and cheaper than trading on DEXs that run directly on the Ethereum blockchain.
The market cap of Loopring (as of Feb. 2022) is around $1B. This means Loopring is the 77th biggest cryptocurrency at this moment.
Immutable X (IMX)
Immutable X is the largest layer 2 solution for NFTs on Ethereum. Especially thanks to the NFT craze in 2021 Immutable X was a major success. It allows users to move NFTs on Ethereum from one wallet to another, paying only low fees and almost instantly.
The market cap of Immutable X (as of Feb. 2022) is around $355M. This means Immutable X is the 136th biggest cryptocurrency at this moment.