đTop Layer 1/Layer 2 Tokens by Market Capitalization :-
đŤLayer 1 (L1) and Layer 2 (L2) tokens are essential components of blockchain ecosystems, each with distinct roles. L1 tokens are native to their blockchain and serve as the primary layer that handles all transactions, smart contracts, and data storage. Layer 2 tokens, on the other hand, are built atop Layer 1 blockchains to improve scalability and transaction speed without sacrificing security or decentralization.
âď¸ Top Layer 1 Tokens :
Layer 1 tokens include the native tokens of major blockchains, such as:
â Bitcoin ( $BTC ): The first and largest cryptocurrency, Bitcoin operates on its own blockchain and is primarily used as a store of value.
â Ethereum ( $ETH ): Ethereum, the second-largest cryptocurrency by market cap, supports decentralized applications ( dApps ) and smart contracts, and its token, ETH, is used for transactions and gas fees.
â Solana ( $SOL ): Known for its high transaction speed and low fees, Solana aims to solve Ethereum's scalability issues. Cardano (ADA): A proof-of-stake blockchain focusing on security and sustainability, Cardanoâs ADA token is used for staking and governance.
âď¸ Top Layer 2 Tokens :
Layer 2 solutions are designed to scale blockchain networks efficiently, offering faster, cheaper transactions while still relying on the security of the L1 blockchain:
â Polygon (MATIC): Built on Ethereum, Polygon enhances scalability by providing a multi-chain system for dApps, offering faster and cheaper transactions.
â Optimism (OP): An L2 solution built on Ethereum, Optimism uses optimistic rollups to scale dApps while keeping them secure and decentralized.
â Arbitrum (ARB): Like Optimism, Arbitrum uses rollups to increase transaction throughput on Ethereum, making it more scalable and cost-effective.
In summary, Layer 1 tokens drive the fundamental operations of blockchains, while Layer 2 tokens enhance scalability and efficiency. Both types are integral to the growth of the decentralized
