In the world of cryptos, one of the most promising trends is the Layer-2 solutions that offer scalability, increased speed of transactions, and decreased transaction fees.
Notably, per the market cap, Mantle, Arbitrum, and Optimism are the top Layer 2 crypto projects with the potential for expansion and near-future utilization.
According to L2Beat, a site that provides stats on the Ethereum layer-2, the current total value locked (TVL) for the Ethereum layer 2 is approximately $39 billion. It surged 3 times compared to the TVL at the beginning of the year.
An upward trend in the TVL shows that Layer 2 solutions have a significant role to play in scaling the Ethereum blockchain.
Here is a detailed breakdown of the top three Layer-2 tokens.
Mantle (MNT)
While most Layer-2 solutions aim to scale Ethereum transactions, Mantle dares to do more. It is opening up the prospects of horizontally integrating with the blockchain world.
Since April, the MNT token price has continued to lose gains and has faced a massive selloff from the higher levels. The token tumbled from the upside mark of $1.50 and slipped below the $1 mark in the last few trading sessions.
Notably, the Mantle token traded below its key moving averages and experienced bearishness. Until it reclaims the $1 mark, it might continue to hover in the downside region and stay under the grip of sellers.
MNT Price Chart Source: TradingViewAt press time, the Mantle token was trading at $0.667 with an intraday surge of over 4.92%, reflecting a neutral stance on the chart. It has a market cap of $2.18 Billion and was ranked 42.
Its technicals looked neutral, and the RSI curve stayed in the oversold region around 32 at press time. That suggested a pullback could be imminent.
Per the price action, the token will show a recovery and might retest the 20-day EMA mark soon.
Arbitrum (ARB)
When listing the top Layer-2 projects on Ethereum, Arbitrum always deserves a place.
During the first half of 2024, ARB made a double top formation, witnessed a severe distribution from its supply region of $2.40, and corrected over 70% in the last four months.
It traded in the bearish trajectory and guided the negative sentiment among the investors. The follow-on lower low swings persisted, and sellers have shown their upper hand in the ARB price.
Fresh buying interest could not be possible if the ARB token price retains the $1 mark.
ARB Price Chart Source: TradingViewAt press time, the Arbtirum token was trading at $0.671 with an intraday surge of over 4.22%, reflecting neutrality on the chart.
It has a total supply of 10 billion and has a market cap of $855.92 Million.
Traded in the downside region, the ARB token sails in the bearish course and was below its significant moving averages.
Per the price action, the token will show a recovery and might retest the 20-day EMA mark soon.
Optimism (OP)
Optimism (OP), the leading Layer-2 scaling solution for the Ethereum network, is viewed as the hope of providing true scalability.
When writing, it traded in a downtrend and has looked bearish for the past few weeks. It formed a descending triangle formation and dragged below its key EMAs.
At press time, the OP token price was trading at $1.52 with an intraday surge of over 0.54%, reflecting neutrality on the chart.
OP Price Chart; Source: TradingViewNotably, the token has a market cap of $325.04 Million and was ranked at 160.
The Relative Strength Index (RSI) curve revived from the oversold region and produced a positive crossover on the chart.
All In All
The top layer 2 cryptocurrencies had already completed the bearish run and were in a downtrend. Still, these picks have a strong potential to pump their gains and could outperform in the upcoming sessions.
