Top 5 Ethereum Layer 2 Altcoins Under $1 That You Should Buy Right Now

19 Apr 2024

Top 5 Ethereum Layer 2 Altcoins Under $1 That You Should Buy Right Now

With the imminent Dencun upgrade on the horizon, Ethereum, the cornerstone of decentralized finance (DeFi), is undergoing significant enhancements. As the Ethereum network braces itself for this crucial event, investors are eagerly eyeing Layer 2 altcoins priced under $1. These altcoins, strategically constructed atop Ethereum’s Layer 2 scaling solutions, offer a beacon of hope amidst the congested lanes of the Ethereum mainnet. Their promise lies in unlocking unprecedented scalability and cost-efficiency, aligning perfectly with the evolving demands of the blockchain ecosystem.
In this comprehensive exploration, we embark on a journey into the realm of Ethereum Layer 2 altcoins, dissecting the top five contenders poised for exponential growth. Beyond merely scratching the surface, we delve deep into the intricate tapestry of their technological prowess and untapped potential, providing discerning investors with invaluable insights into the opportunities that lie ahead.

What are Layer 2 Altcoins?

Layer 2 altcoins are cryptocurrencies built on top of existing blockchains like Ethereum. They aim to improve scalability and efficiency by processing transactions off-chain or in a layer above the main blockchain. These altcoins offer faster transaction speeds, lower fees, and improved scalability compared to the main blockchain. Examples include Loopring (LRC), Skale (SKL), Matic Network (MATIC), OMG Network (OMG), and Immutable X (IMX). They utilize various scaling techniques such as state channels, sidechains, plasma chains, or zero-knowledge proofs to achieve these improvements.

Understanding Layer 2 Scaling Solutions

Ethereum Layer 2 Scaling Solutions play a crucial role in improving the scalability and efficiency of blockchain networks, particularly Ethereum. By processing transactions off-chain or in a layer above the main blockchain, Layer 2 solutions significantly increase transaction throughput while reducing costs and congestion on the main chain. State channels, sidechains, and plasma chains are among the various types of Layer 2 scaling solutions, each offering unique benefits for enhancing blockchain usability and scalability.

Features of Layer 2 Altcoins

Layer 2 altcoins play a pivotal role in the evolution of blockchain technology, addressing critical challenges and unlocking new opportunities for mainstream adoption. Let’s explore their significance under various subheadings:

  1. Scalability Enhancement: Layer 2 altcoins significantly increase transaction throughput by offloading transactions to secondary layers. This alleviates congestion on the main chain, enabling smoother operation of decentralized applications (dApps).
  2. Cost Reduction: Layer 2 altcoins reduce transaction fees through off-chain processing or alternative consensus mechanisms, making blockchain transactions more accessible and affordable for users.
  3. Speed Improvement: Layer 2 altcoins process transactions faster than the underlying blockchain, enabling near-instantaneous transaction confirmations and enhancing the overall user experience.
  4. Enhanced Privacy Features: Layer 2 altcoins incorporate advanced privacy features, allowing users to transact more anonymously compared to the underlying blockchain, fostering trust and confidence in the cryptocurrency ecosystem.
  5. Interoperability Promotion: Layer 2 altcoins facilitate interoperability between different blockchain networks, enabling seamless transfer of assets and promoting synergy among diverse blockchain ecosystems.
  6. Smart Contract Capabilities: Layer 2 altcoins support smart contracts, empowering developers to build complex decentralized applications (dApps) across various industries, driving innovation in the cryptocurrency space.

Top 5 Ethereum Layer 2 Altcoins

Skale (SKL)

Positioned as a leader in the decentralized space, Skale (SKL) offers a tailored network for developers within Ethereum’s ecosystem. SKL addresses Ethereum’s scalability challenges and high gas fees by providing a platform for building custom blockchains and decentralized applications. With its native currency, SKL token, the network incentivizes participation through staking rewards and governance decisions.

Despite a slight decrease in price to $0.1054, SKL has witnessed a notable surge of over 45% in the past month, boasting a market capitalization of $546 million.

Loopring (LRC)

Utilizing “zkRollup” technology, Loopring (LRC) enhances decentralized exchange (DEX) performance by moving transactions off-chain, resulting in lower costs and faster speeds compared to Ethereum’s mainnet operations. The LRC token plays a crucial role in staking, governance, and securing fee reductions within the ecosystem.

Despite a recent drop to $0.3503, LRC’s market capitalization stands at $478 million, positioning it as a key altcoin amidst the anticipated Dencun network upgrade.

Mantle (MNT)

Mantle (MNT) swiftly climbed the ranks within Ethereum Layer 2 network, securing the fourth position in Total Value Locked (TVL) within two months of its launch. With an Annual Percentage Yield (APY) of 7.2% and the capability to process up to 200 transactions per second, Mantle showcases robust processing capabilities.

Priced at $1.01, MNT has witnessed a significant increase, making it a compelling cryptocurrency for investment consideration.

Myria (MYRIA)

Myria focuses on NFTs and blockchain gaming, offering instant trade confirmations and zero gas fees for NFT transactions. Developed in collaboration with StarkWare, Myria utilizes Zero-Knowledge Rollup (ZK-Rollup) technology to support up to 9,000 transactions per second (TPS).

Currently priced at $0.01454, MYRIA marks a 2.17% increase over the last 24 hours.

Gelato Network (GEL)

A pioneering decentralized network, Gelato Network (GEL) employs bot technology to automate smart contract operations across major public blockchains like Ethereum, Polygon, and Fantom.

GEL is priced at $0.7671, with a market capitalization of $84 million, offering potential growth opportunities for investors.

Factors to Consider Before Investing

Before investing in any cryptocurrency, it’s essential to conduct thorough research and consider various factors. Here are some factors that you should consider:
Market Research: Conduct thorough research on the cryptocurrency’s technology, use case, and competition. Understand its potential for success.
Risk Tolerance: Assess your risk tolerance and invest only what you can afford to lose. Create a balanced investment strategy aligned with your financial goals.
Diversification: Spread investments across a mix of cryptocurrencies to reduce risk. Avoid putting all funds into one asset.
Regulatory Environment: Stay informed about regulations impacting cryptocurrencies. Understand how regulations may affect your investments.
Security: Securely store cryptocurrencies in reputable wallets. Consider hardware wallets for enhanced security.
Liquidity: Consider the liquidity of a cryptocurrency before investing. High liquidity allows for easier buying and selling.
Use Case and Adoption: Evaluate the cryptocurrency’s use case and adoption. Look for projects with clear use cases and growing user bases.
Market Conditions: Understand overall market conditions and trends. Adjust investment strategies accordingly.
Long-Term Potential: Assess the cryptocurrency’s long-term potential. Consider technology, team, adoption, and competitive advantage.
Collaborating with Ethereum Layer 2 solution providers unlocks scalability and efficiency for businesses and developers in the blockchain space. By leveraging cutting-edge technologies and expertise, businesses can scale their applications without compromising security or decentralization. These collaborations streamline operations, reduce transaction fees, and drive innovation, ultimately enhancing the user experience.


In conclusion, Ethereum Layer 2 altcoins under $1 offer exciting investment prospects amidst the Dencun upgrade. Skale, Loopring, Mantle, Myria, and Gelato Network are positioned for significant growth, addressing scalability challenges and driving innovation within the Ethereum ecosystem. As Ethereum continues to evolve, these Layer 2 altcoins have the potential to deliver substantial returns for investors seeking exposure to decentralized finance and blockchain technology.

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