Scaling options within the crypto ecosystem has grow to be a dire want, particularly for the Ethereum (ETH) blockchain. So, it was not stunning that many Ethereum Layer 2 (L2s) sprung up in the previous couple of years.
For the unfamiliar, the principle aim of scalability is to extend transaction throughput and pace with out compromising on safety or decentralization. Curiously, nearly all the scaling options have tokens connected to them, and in 2024, a few of these tokens may expertise a breakout.
On this article, Coin Version will concentrate on the highest 10 Layer 2 tokens with immense potential in 2024. Right here, additionally, you will discover out why the basics behind the initiatives may play essential roles within the efficiency of the native tokens.
Arbitrum (ARB)
Arbitrum (ARB) has cemented its place as one of many scaling options with essentially the most traction. It is because it is without doubt one of the few initiatives utilizing optimistic rollups to enhance pace and cost-efficiency on Ethereum. Nonetheless, the ARB token has had its share of troubles.
Between December 2 and 12, ARB’s value traded between $1.06 and $1.21. Nonetheless, the 4-hour ARB/USD chart confirmed that each one which will have been prior to now. Beforehand, Coin Editon had reported how ARB was displaying indicators of a breakout.
On December 23, ARB broke out of its tight buying and selling vary as the value rose to $1.45. Nonetheless, the value has decreased these days. The token dropped to $1.29 within the course of.
A have a look at the Relative Energy Index (RSI) confirmed that the indicator had decreased to 47.28. If profit-taking intensifies, the value could lower to the $1.10 area. Ought to this occur, the RSI studying could drop beneath 30.00 and this could possibly be a great entry level earlier than the token approaches $2.
Polygon (MATIC)
Polygon (MATIC) makes use of a modular framework to scale the event of purposes on Ethereum whereas enabling quicker transactions. For MATIC, its value has elevated by 109% within the final 90 days, CoinMarketCap revealed. This value improve impacted the Cash Circulation Index (MFI) to hit 91.08. The MFI swings between 0 and 100.
Studying above 80 signifies {that a} cryptocurrency is overbought. If the MFI falls beneath 20, it implies {that a} token is overbought. At press time, MATIC was buying and selling at $1.06. However the MFI studying is a sign to promote.
Due to this fact, MATIC may lower beneath $1 within the coming days. Nonetheless, the 0.5 Auto Fibonacci extension confirmed that the value could drop to $0.90.
Additionally, the 4.236 Fib degree indicated that the subsequent space of curiosity may be $1.40. So, merchants searching for lengthy MATIC may have to search for entries round $0.90. So, merchants searching for lengthy MATIC may have to search for entries round $0.90 earlier than the rally begins.
Immutable X (IMX)
Immutable X (IMX) is an L2 that permits the fast deployment of complicated good contracts and purposes on Ethereum. Within the final 12 months, IMX has elevated by 473.21%, information from CoinMarketCap confirmed. Nonetheless, the Superior Oscillator (AO) confirmed that IMX momentum had grow to be bearish. At press time, the AO was -0.04.
The AO studying beneath the zero line signifies an current downtrend. The Bollinger Bands (BB) additionally revealed that the volatility across the cryptocurrency had grow to be low. So, the IMX value could solely fluctuate inside the next vary within the brief time period.
On the identical time, the contracting bands could possibly be the catalyst that foreshadows a breakout. Going ahead, IMX could lean towards $3 as a full-blown altcoin season could possibly be close to.
Optimism (OP)
Optimism (OP) contributes to the Ethereum ecosystem by enabling trustless transactions utilizing optimistic rollups like Arbitrum. OP’s value at press time was $3.30.
However the breakout already appeared to have begun since December 19, when the value was $2.13. The value motion was additionally in a position to break the $2.34 resistance, resulting in an increase above $3.
Within the meantime, OP could lower beneath $3.29. However there was robust help at $3.14. Ought to OP keep the help, the value may rise near $4. This inference was additionally confirmed by the Exponential Transferring Common (EMA).
At press time, the 20 EMA (blue) had risen above the 50 EMA (yellow), suggesting a bullish bias for the token. If promoting stress doesn’t outpace accumulation, then OP’s breakout could also be one thing to look out for.
Mantle (MNT)
Mantle (MNT) allows scalability on Ethereum by compressing costly fuel charges within the type of a block. In response to CoinMarketCap, MNT’s 30-day efficiency was decrease in comparison with the likes of OP and ARB.
As of this writing, the cryptocurrency’s value was $0.58. The 4-hour MNT/USD chart confirmed that the token confronted promoting stress after it hit $0.62.
Nonetheless, MNT may be able to run up the charts once more, as indicated by the Relative Energy Index (RSI). On December 26, the RSI was 31.18, suggesting that the token was beforehand overbought.
However on the time of writing, the RSI studying has returned in an upward path. This motion implies a rise in purchase orders for MNT. Ought to the shopping for stress improve, then MNT could cross $0.62 yet another time. This might additionally assist the cryptocurrency hit a brand new All-Time Excessive (ATH).
MetisDAO (METIS)
MetisDAO (METIS) employs the DAO mannequin to resolve the associated fee, pace, and scalability points on Ethereum. The mission is ranked quantity 134 as per market capitalization. Nonetheless, the 233% seven-day improve reveals that the token has the potential to grow to be a prime 100 cryptocurrency. At press time, METIS’ value was $89.40.
Moreover, Coin Version checked out the Transferring Common Convergence Divergence (MACD). As of this writing, the MACD was 1.92. The constructive MACD signifies that METIS has fashioned a bullish divergence.
One other indicator thought of is Aroon. At press time, the Aroon Up (orange) was 85.71%, whereas the Aroon Down (blue) was a lot decrease. The positions of the Aroon up and down had been an indication that the energy of the bullish pattern was immense. So, the value of METIS had the potential to extend additional.
Loopring (LRC)
Loopring (LRC) runs on Ethereum and makes use of the Zero-Information (ZK) proof to enhance cost and low-cost buying and selling on the blockchain. The value of LRC was $0.29 as of this writing. However since holding the help at $0.25, bulls have discovered it onerous to push the LRC value towards $3.
Within the mid to long run, LRC may have the ability to cross the $3 mark. This conclusion was taken from the EMA. LRC’s 50-day EMA (blue) crossed over the 200 EMA (yellow), indicating a possible rally in just a few months.
SKALE (SKL)
SKALE Community (SKL) makes use of the modular blockchain system to carry scalability to Ethereum. On account of the answer, there was a rise in SKL. This adoption was important within the 354.50% value improve within the final a number of days.
Going into 2024, there could possibly be an extra hike within the SKL value. The SKL value at press time was $0.064. Per the 4-hour chart, the Superior Oscillator (AO) had decreased to 0.073, indicating growing downward momentum.
Nonetheless, the On Stability Quantity (OBV) confirmed a rise in shopping for stress. Due to this fact, SKL stays a cryptocurrency with good long-term potential. Merchants also needs to be careful for the motion of ETH. If ETH rises, there’s a excessive probability that SKL may comply with in an identical path.
ethDYDX (ETHDYDX)
At press time, ethDYDX was present process a transfer to the dYdX chain. This motion is to make sure that the mission scales Ethereum and allows seamless bridging on the blockchain. For the token, the value has elevated by 73.75% within the final three months.
ETHDYDX’s potential breakout may largely rely upon the variety of bridges between the dYdX chain and Ethereum. If market individuals bridge extra tokens between the chains, then demand for ETHDYDX may improve, which may additionally have an effect on its value positively.
Neo (NEO)
Neo (NEO) has been tagged because the Chinese language model of Ethereum. One of many causes for this comparability is that the mission acts as an open-source platform for scaling funds and good contracts.
NEO’s value at press time was $13.98—nearly double the worth it had 30 days in the past. Contemplating the NEO/USD 4-hour chart, NEO could also be making ready for an additional leg up as 2024 approaches.
This was due to the Relative Energy Index (RSI). As of this writing, the RSI had hit 51.35. The bounce above the 50.00 midpoint implies rising bullish momentum. If the momentum stays the identical, it may solely be a matter of time earlier than NEO hits $15.
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