With the growing popularity of cryptocurrencies, the need for scalable and efficient blockchain solutions has increased significantly in recent years. In this quest for improvement, Layer 2 solutions have become increasingly well-known in the blockchain industry. Layer 2 coins represent the most promising projects that take blockchain networks to the next level using innovative technologies. From faster transactions to improved scalability and lower costs, these coins offer revolutionary solutions to the limitations of traditional blockchains, or Layer 1 blockchains.

Do you want to know more about Layer 2 Coins and their functionalities? Then read on quickly. Below, we have listed the Top 10 Layer 2 Coins of 2023 for you.

1. Polygon (MATIC)

Polygon (MATIC), formerly known as Matic Network, is an Ethereum-based platform that aims to improve the scalability and usability of Ethereum. Polygon is designed to address the limitations of Ethereum's network, specifically focusing on the high transaction fees and delays in confirming transaction fees on the Ethereum network.

MATIC, Polygon's native token, is used for transaction fees, network security and governance on the Polygon network. MATIC can also be staked to participate in Polygon's consensus mechanism and earn rewards.

2. ImmutableX (IMX)

ImmutableX (IMX) is a Layer 2 protocol built on Ethereum's network for trading NFTs. Through their platform, ImmutableX aims to solve the recurring problem of scalability in order to enable large-scale trading of NFTs. ImmutableX leverages the security and power of Ethereum's network, this allows you to develop projects in Ethereum's network through ImmutableX. Furthermore, ImmutableX offers a platform where users can set their own trading fees, have a scalability of as many as 9,000 transactions per second and determine no gas costs.

IMX is an ERC-20 utility token that ensures ImmutableX users are rewarded. Users receive IMX tokens when they perform actions on the platform, such as trading NFTs, building applications or providing liquidity. The IMX tokens are exclusively for the community, no ImmutableX team members receive IMX for their work.

3. SKALE (SKL)

SKALE Network (SKL) is a decentralized and "elastic" blockchain designed to scale Web3 applications. The different chains on SKALE are configurable blockchains that exist one layer above the Ethereum blockchain. SKALE Network is therefore an execution layer for Ethereum's network. An execution layer is specifically aimed at scaling, particularly applications. Developers can rent a SKALE chain that works as a private, Ethereum-compatible, smart contract platform. By using the side chains provided by SKALE, for example, developers can process more transactions per second and it is a scalable model.

SKL, the coin associated with SKALE Network, is used on the network for a variety of things. For example, SKL is used for network security. Furthermore, SKL token holders can stake the SKL and earn rewards through their contribution to the network and holders can vote on the direction of the project.

4. ZKSpace (ZKS)

ZKSpace (ZKS) is a platform consisting of the following main components: the ZKS cryptocurrency, an innovative Automated Market Maker (AMM) DEX using ZK-Rollups technology, the payment service ZKSquare and an NFT marketplace called ZKSea.

With a full user interface, NFT support, unlimited token listing, smoother withdrawals, optimized efficiency and multi-chain support, ZKSpace aims to implement EVM-compatible ZK-Rollups and bring the community more Layer 2-based products in the future.

5. Loopring (LRC)

Loopring (LRC) is a decentralized and automated exchange protocol built on Ethereum. Loopring allows the decentralized exchange to proceed quickly and efficiently, this is done through ring sharding and order matching. Ultimately, all orders are completed by the exchange itself. Loopring itself is not an exchange, but is just a smart protocol that makes everything easier.

LRC is an ERC-20 token that allows Loopring users to securely and quickly exchange between different exchanges.

6. dYdX (DYDX)

dYdX (DYDX) is a decentralized trading platform built on Ethereum that lets users trade a wide range of crypto assets. Also, dYdX offers a fully decentralized exchange, a DEX, on which users can trade directly with their own wallets.

The dYdX token is a utility token and the native token of the dYdX protocol and can be used as payment for transaction fees and for voting rights on governance proposals on the platform.

7. OMG Network (OMG)

OMG Network (OMG) is a cryptocurrency payment platform built on the Ethereum blockchain. OMG Network was built with the goal of enabling fast, secure and low-cost transactions of cryptocurrencies and other digital assets. OMG Network does this by providing a decentralized and open financial infrastructure.

The OMG token plays an important role in the operation of the OMG Network. The token is used as payment for transaction fees and for staking to help in the validation process of transactions. The OMG token also helps decentralize the network and OMG holders can receive discounts on transaction fees when using OMG as a means of payment.

8. Cartesi (CTSI)

Cartesi (CTSI) is a multichain layer 2 infrastructure that enables software developers to create their own smart contracts with off-chain software tools that developers are used to. The layer 2 application of Cartesi is a way to make the application and protocol scalable. This application is central to the development and implementation of scalable dApps. The applications contain both blockchain components and off-chain components.

CTSI is Cartesi's utility token that makes the network operable. CTSI is used for such things as staking and fees paid to validators for processing data on the Cartesi network.

9. MetisDAO (METIS)

MetisDAO (METIS) is, as the name might suggest, a Decentralized Autonomous Organization (DAO). However, MetisDAO is not a normal DAO. In fact, MetisDAO sees all the problems of today's organizations and has innovative ideas for them. MetisDAO is a Layer 2 project, which aims to address the problems of Layer 1 projects. MetisDAO should ensure that the developments around the decentralized economy of Web3.0 continue.

METIS is a very important token within the MetisDAO ecosystem. For example, you can stake the METIS token to earn additional returns on top of your investment.

10. Optimism (OP)

Optimism (OP) is a Layer 2 scaling solution with the goal of improving the scalability of Ethereum. The Optimism platform accelerates transactions on Ethereum at a fraction of the cost of a typical on-chain transaction. Optimism makes this possible through a technology called optimistic rollups, this technology bundles multiple transactions into one.

OP is the token that belongs to Optimism's ecosystem. The OP token uses the ERC-20 standard on the Ethereum blockchain. Unlike other scaling solutions, users do not need the OP token to pay transaction fees. Instead, fees are always paid using Ether, the cryptocurrency of the Ethereum blockchain.