Ethereum Layer-2 Coins Continue Their Amazing Run As Optimism (OP) Breaks All-Time Highs: Here’s Why

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Ethereum layer-2 The tokens seem to be enjoying an amazing rally despite the bearish environment in the financial markets.

Layer-2 refers to the various scaling solutions on the separate blockchain that extends the Ethereum network. In particular, Layer-2 projects take multiple off-chain transactions, combine them into one, and send them for verification to the Ethereum mainnet, thus reducing gas costs.

One such layer is the cumulative optimistic optimism (OP). The project’s parent token, OP, has been one of the best performing tokens in the crypto markets since the beginning of the year.

The token is up about 230% in the last month and It just reached an all-time high of $3.20According to CoinGecko data.

Other Layer-2 symbols are also being pumped. For example, zero-knowledge Loopring (LRC) is up 57.5% in the past two weeks after the project announced its partnership with Protocol: Gemini to bring Web3 games to Layer-2.

ImmutableX (IMX), a gaming blockchain built on Layer-2, is up 150% in the past month. And Polygon (MATIC), which says it is about to launch a zero-knowledge Ethereum Virtual Machine (zkEVM) scaling solution, is up 57.8% last month.

Why are the second layer tokens pumped?

While it is difficult to say why the Ethereum Layer-2 token went live, there could be some plausible reasons.

First, the pump coincides with the rally in the stock market. Moreover, many other cryptocurrencies are also huge since the beginning of the year. However, second layer tokens seem to be of particular interest to investors.

This may indicate a new narrative formation in the markets. While last year was supposed to be the year of Layer-2s (hence the L222), multiple bankruptcies and controversies in the industry may have prevented a real rise – in terms of adoption and token price – of Layer-2s occurring.

This year, Ethereum Layer-2s have been gaining momentum since the beginning of the year. Some observers have said that it is time to retire the term “layer-one wars” and pay more attention to competition in the Ethereum Layer-2 markets.

Ethereum Layer-2 scaling solutions are one of the most exciting projects in the crypto industry. No wonder investors seek second-tier exposure. However, investors should always do their research before deciding where to invest their money.

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