Introducing the Layer 2 screener
Gas prices are insane this year. Amounts to be spent on transaction fees are basically leaving small retails traders off board. And ETH 2.0 is becoming more and more important project to release. As soon as possible.
This is the demand for ETH 2.0 visualized:
ETH 2.0 release is going to happen sooner or later:
Meanwhile a bunch of projects are researching Ethereum scalability solutions. What are possible solutions?
- Layer 1 (On-Chain) Solutions
- Layer 2 (Off-Chain) Solutions
- Consensus mechanisms
- Scalable Distributed Ledgers
Layer 1 is requiring fundamental changes to be made onto the codebase of the actual blockchain (hence the term “on-chain”). This entails engaging in updates such as increasing the block size limit or reducing the block creation time.
Layer 2 refers to secondary applications or channels that are built on top of the main blockchain and do not require any fundamental changes to the actual blockchain. The bulk of transactions are ‘off-loaded’ to the secondary channels to reduce network congestion and facilitate faster processing speeds. (Details)
Yes! Looks like Layer 2 is one of the most anticipated things to curb insane fees. While ETH2.0 is forever 'somewhere close'.
Projects successful in Layer 2 (L2) implementation can possibly be in a high demand, bring value to users and reduce fees. L2 projects tokens can increase in value significantly.
What are Layer 2 projects?
Santiment has a comprehensive set of Market Segments for projects, or tags. One of available tags is "Layer 2". How to filter projects by "Layer 2" tag? Use a screener. Well, we already did it for you: one of the most complete lists of Layer 2 projects.
Few observations on L2 market segment
- 1. A project with largest marketcap is OMG. And it gained almost 10% last week:
2. Second biggest price gainer is LRC. No wonder, Loopring was first to release zkSNARKs for scalability earlier this year. Not sure we know much about Rivex, gained 69% last week. And you?
3. The most powerful buidlers are:
For comparison - August’s busiest ERC-20 Dapps
Btw, have you explored the "Yield farming" projects screener?