The market capitalization of Layer 2 (L2) coins and tokens is increasing after a period of stagnant trading. L2 tokens have been overshadowed by meme tokens, but they are regaining value and have the potential for innovation. L2 projects like Arbitrum and Optimism are leading the recovery in market capitalization. L2 tokens are also exiting their unlocking periods, reducing selling pressures. The total market capitalization of L2 tokens is $17 billion, much lower than meme tokens. L2 chains are gaining attention and paying rent to Ethereum for using transaction records. Blob fees are becoming a significant fee burner on Ethereum. L2 chains have the ability to host super-apps and retain earnings. Most L2 chains are in profit, although Polygon and Taiko are exceptions. L2 chains still lag behind L1 chains like Solana in terms of fee production. Despite this, L2 chains are successful in scaling and reducing transaction costs for DEX trading and DeFi. L2 tokens may benefit from the growth of Ethereum.



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