Tuna Chain is a modular Layer 2 solution that functions on Bitcoin while also integrating with Ethereum. Learn more about how it works in this article.

 is rightfully known for its security through its use of 

 offers greater versatility. Until recently, blockchain projects had to choose between the two. Now, however, a hybrid solution is available that blends the benefits of both of these leading blockchains and takes a bold leap into the future.

 that functions on Bitcoin while also integrating with Ethereum.

) is strongly rooted in elevating the user experience (UX). Bitcoin is the most trusted cryptocurrency, largely due to the recognized strength of its security protocols. However, while it excels in security, it lacks the versatility that ultimately fosters innovation. In this regard, Ethereum is viewed as a superior blockchain. 

Tuna Chain’s modular Layer 2 solution works on Bitcoin through a 

 hybrid layer while offering Ethereum functionality. It uses 

-powered modularity to minimize transaction costs. At the same time, this modularity improves both trust and efficiency. Tuna Chain currently supports Solana, Ethereum and Bitcoin transactions. It works with Bybit, Phantom, MetaMask, UniSat Wallet and OKX Wallet.

Tuna Chain is a new project that was established by three unknown individuals, known under the names of Tuna Nigiri, Tuna Sushi and Tuna Sashimi. Each team member brings their unique experiences and knowledge with blockchain, cryptography and 

 to move Tuna Chain forward. Tuna Chain is financially supported by BSC News, Normie Capital, Serafund, ArkStream Capital, Cogitent Ventures, MH Ventures and other angel investors. After its Ocean Festival and Ocean Trio, Tuna Chain now has over 1.3 million wallets connected on the Tuna Chain Testnet, with a total 

The purpose of Tuna Chain is to bridge the gap between Bitcoin and Ethereum. Although Bitcoin’s chain boasts superlative security, it lacks the versatility that Ethereum’s 

 provides. As a hybrid Layer 2 solution, Tuna Chain’s primary goal is to blend the two. By doing so, its founders want to push the envelope on the future of blockchains and provide a better UX.

Tuna Chain’s functionality is based on three core features: the Toro native 

, Celestia-powered modularity and a hybrid ZK-OP layer. With the Toro stablecoin, users can purchase new digital assets through the overcollateralization of their BTC supply. Meanwhile, Celestia-powered modularity improves data availability, and the ZK-OP hybrid layer executes smart contracts with fast, secure transactions.

Rollup Solutions and Operational Mechanism of Bitcoin Layer 2

Layer 2 solutions similar to those found on Ethereum enhance Bitcoin's scalability, using technologies such as 

 (ZK). Tuna Chain enhances Bitcoin's transaction capacity by integrating optimistic rollup technology into its Layer 2 framework.

Securing Native Assets on Bitcoin: Leveraging Taproot's Upgrade

 upgrade into the Bitcoin network marks a significant advancement in the security of its native assets. This update incorporates advanced cryptographic techniques, such as Schnorr Signatures, MAST and Tapscript. To further secure these assets, Tuna Chain has implemented a multisignature security model and is exploring the addition of external validators to its network security protocols.

Tuna Chain processes transactions through a detailed system that begins with the precise arrangement and execution of transactions. These are then reliably recorded on 

's data availability layer and conclusively verified on the Bitcoin blockchain. Verifiers are essential to the chain's integrity, quickly producing fraudproofs to address any transaction discrepancies and ensure the network remains secure and reliable.

Tuna Chain is a next-level Layer 2 solution that moves blockchain into the future. Each of its core features provides unique benefits to support a superior UX. 

Tuna Chain uses Celestia-powered modularity to optimize its Layer 2 functionality. Specifically, this modularity is supported by Layer 2 data management that enhances trust, improves efficiency and reduces transaction fees.

The ZK-OP Layer is Tuna Chain’s hybrid Layer 2. This layer utilizes a dual-phase architecture that integrates Ethereum’s benefits with those of Bitcoin. By doing so, it empowers smart contracts and accelerates secure transactions.

 is a grand opening event celebrating Tuna Chain’s launch. During this grand opening, the first round of TUN tokens will be distributed. Distribution cap for this initial release is based on 

 growth driven by the community, and could range between 2% and 21%. The token supply increases by 2% as each new milestone is achieved.

, the setup experience for new community members, consists of Calm Waters, Whimsical Tides and Majestic Depths. With Calm Waters, new users can receive 60 points for following Tuna Chain on social media and linking their wallet. Additional points are available by referring friends to Tuna Chain. Whimsical Tides, the testnet phase, is still in development along with Majestic Depths.

In the first quarter of 2024, Tuna Chain successfully completed several milestones, including the launch of the Tuna Testnet — Alpha, Ocean Trio Points campaign, Ocean Festival (which highlights the TVL) and the rollout of the TunaChain Explorer. 

Moving into Q2 2024, progress is ongoing with significant developments. Tuna Chain’s team is currently deploying an optimistic rollup (OP)-based Mainnet, establishing a native bridge from Bitcoin to the Tuna Mainnet, launching a Mainnet decentralized exchange (

), and developing a modular data availability (DA) layer.

Tuna Chain functions with three primary tokens: TORO, TUNA and WOOG. Each serves a different and integral role.

TORO, Tuna Chain’s native stablecoin, helps users transform their BTC into their choice of high-yield digital assets. This is accomplished seamlessly and with full transactional stability. The user doesn’t need to liquidate the BTC to complete the transaction.

 of Tuna Chain, is used for various purposes, such as revenue generation, funding builders and contributors, benefiting token holders, incentivizing users and community members, and promoting community engagement within the Tuna Chain ecosystem.

TUNA has a total token supply of 210,000,000.

 token that acts as the primary ticket into the Tuna Chain ecosystem. Only 200 of 1,000 available WOOG tokens were distributed at the BRC-20 Launchpad event. The remaining WOOG will be distributed only when they’re activated by external forces.

Looking to get your hands on the TUNA token? Bybit will soon offer it via our 

In the meantime, you can also purchase TUNA through 

WOOG tokens grant access to the Tuna Chain ecosystem. Of the total supply of 1,000 tokens, only 200 are currently scheduled to be released. These tokens are exclusively available through the 

. There’s a purchase limit of one WOOG token. While 800 WOOG tokens will remain, they’re sealed, and their release isn’t scheduled. You must have an active Bybit account with a funded wallet to participate in the event. 

TUNA tokens play a fundamental role in governance of the Tuna Chain’s unique hybrid Layer 2 chain, designed to deliver the benefits offered by both Bitcoin and Ethereum. Tuna Chain is presented as the future of blockchain, and is poised to change the blockchain landscape in exciting ways, which could place a premium on TUNA tokens. 

As an investment, TUNA should be purchased conscientiously because the value of the tokens will decrease when additional tokens are released, even for a short period of time. In addition, all cryptocurrencies are speculative in nature, with a risk of partial or complete loss. Therefore, 

 cryptocurrencies before making an investment.

Tuna Chain is a hybrid Layer 2 solution that provides a much-needed service in the blockchain world. By bridging the gap between Bitcoin and Ethereum, it allows users to enjoy the best of both worlds. In doing so, it has the potential to move the dial forward significantly in blockchain technology. Moving forward, Tuna Chain is a platform worthy of attention.

Intermediate

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Tuna Chain (TUNA): Reinventing Bitcoin With a ZK-OP Approach

Notable Ethereum Spot ETF applications have come from high-profile issuers that received approval for Bitcoin Spot ETFs earlier this year. Learn more here.

The cryptocurrency landscape could be on the brink of a major shake-up as several Ethereum spot exchange-traded fund (

) applications await regulatory approval. These financial instruments promise to bridge the gap between traditional investment markets and the fast-growing world of digital assets, offering investors a regulated and accessible means for gaining exposure to 

This article explores the top pending Ethereum Spot ETF applications, exploring their significance, potential impact on the market and implications for the broader adoption of cryptocurrencies.

What Is an Ethereum Spot ETF Application?

An Ethereum Spot ETF application is a filing submitted to regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), to list an exchange-traded fund that tracks the price of Ether (ETH), allowing investors to gain exposure to the cryptocurrency without directly holding it.

How Does an Ethereum Spot ETF Application Work?

An Ethereum Spot ETF application is a formal request by a financial institution to gain regulatory approval to offer a financial product that tracks the price of Ether (ETH), the second-largest cryptocurrency and the token of the Ethereum network, in real time. 

Investors can participate in the ETF by purchasing shares through their brokerage accounts. This way, they can gain exposure to Ether's price movements without the complexities associated with directly buying or holding the cryptocurrency. The ETF provider assumes responsibility for securely holding the Ether, managing the fund's day-to-day operations and ensuring ongoing compliance with regulatory requirements.

Current Ethereum Spot ETF Application Landscape

, Fidelity, VanEck and ARK 21Shares have all thrown their hats into the ring by submitting applications to the SEC for approval. These particular issuers have previously applied to run Bitcoin Spot ETFs that are currently approved and trading.

However, the SEC has pushed back on the recent Ethereum Spot ETF applications, prolonging the decision-making process. They've also sought public feedback in order to gauge whether the arguments supporting the approval of Bitcoin Spot ETFs are applicable to Ethereum Spot ETFs as well.

Anticipation has continued to build with the approach of the final deadlines for the SEC's decisions, set for between May 23 and Jul 5, 2024 for various applicants. The SEC's review process involves assessing factors such as the potential for market manipulation and the resemblance between Ethereum spot and futures exchange-traded products.

The outcome of these applications holds significant weight, as it could shape the future landscape of cryptocurrency investment vehicles and play an important role in driving broader adoption of Ethereum within traditional financial markets. Investors and observers alike are closely monitoring these developments, recognizing their potential to influence the trajectory of both Ethereum and the wider crypto market.

Top High-Profile Ethereum Spot ETF Applications

Several high-profile financial institutions have applied for Ethereum Spot ETFs, reflecting a growing interest in cryptocurrency investment products. Following is a list of some notable contenders.

BlackRock, a global investment giant and the world’s largest asset manager, submitted its 

 Ethereum Trust, in November 2023. However, the SEC postponed its decision to late January 2024 and again to March. The SEC is currently seeking public comment on the application, particularly concerning Ethereum’s susceptibility to fraud, and has delayed its decision until Jun 11, 2024.

Franklin Templeton, another major player in the investment world, 

 for an Ethereum Spot ETF in February 2024, making it the latest contender to join several other firms in the race. The SEC has delayed the deadline to June 2024 to rule on the firm’s application. If approved, the fund will be listed on the Chicago Board Options Exchange as Franklin Ethereum ETF.

Known for its ETFs and mutual funds, investment management firm VanEck has expressed doubts about the SEC's approval of its Ethereum Spot ETF application, 

 in July 2021. Although the SEC’s decision is expected in May 2024, VanEck’s CEO has voiced his skepticism of approval by the May 23, 2024 deadline, citing the regulators' ominous silence. Notably, VanEck holds the distinction of being the first investment management firm to file an ETH Spot ETF application in the United States.

21Shares specializes in cryptocurrency exchange-traded products (

), while ARK Invest focuses on thematic investing. The two firms 

 for the ARK 21Shares Ethereum ETF in September 2023, with the SEC expected to decide by May 24, 2024. The application has been 

 to include a cash-creation model, and has proposed plans to stake a portion of the ETF’s Ether for generating additional income.

A global asset manager focused on cryptocurrencies, Hashdex 

 with the SEC in September 2023 to list and trade shares of the 

 its decision on the application, with a verdict expected by late May 2024.

Grayscale is the world’s largest digital currency asset manager, with a range of investment products that provides exposure to cryptocurrencies and the digital currency asset class. The firm 

 its Grayscale Ethereum Trust into an Ether Spot ETF in October 2023. The SEC extended the review period, setting a new deadline for June 2024. 

Invesco, an investment management firm, has partnered with Galaxy Digital, a diversified financial services firm, to create a 

 for an Ethereum Spot ETF to be named the Invesco Galaxy Ethereum ETF. The SEC's decision, expected in December 2023, has been 

Fidelity Investments is a major financial services corporation with a global presence and millions of customers. Fidelity first filed for an Ethereum Spot ETF in November 2023. It later 

 its application in March 2024 to include ETH staking, which would allow investors to earn additional income from staking rewards. The SEC has set a deadline of May 23, 2024 to approve or deny the application.

What Could Happen If an Ethereum Spot ETF Application Is Approved?

The approval of an Ethereum Spot ETF application holds significant implications for the cryptocurrency market.

Approval of an Ethereum Spot ETF could mark a significant milestone for the crypto market. It would greatly improve Ethereum's accessibility, bolster market confidence and potentially drive up Ether’s price. In addition, such an approval would represent a new milestone in cryptocurrency adoption, providing investors with a regulated and easy avenue for investing in Ethereum. Nevertheless, regulatory hurdles and market volatility are variables that could influence the timing and magnitude of the approval of the pending applications.

ethereum spot etf applications featured image

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An Overview of the Top Pending Ethereum Spot ETF Applications

Stripe is reentering the cryptocurrency market by allowing merchants to accept payments in USD Coin (USDC) on Ethereum, Solana, and Polygon networks

The SPX index is down 0.46%, influenced by disappointing economic data indicating a slowdown and persistent inflation, along with poor earnings from companies such as Meta Platforms and IBM. The broader cryptocurrency market is up, with Bitcoin and Ether rising by 1.12% and 1.45%, respectively in the past 24 hours.

Today’s outperformer is W, which jumped 16.1% after Wormhole launches Native Token Transfers for seamless W token interoperability across blockchains.

Wormhole (W), launched in 2020, is a cross-chain protocol that facilitates communication and token transfers across over 30 blockchain networks. Originally a crypto bridge between Solana and Ethereum, it has expanded to include features like the Portal token bridge and messaging protocols, serving as a comprehensive platform for cross-chain interactions. Wormhole has launched Native Token Transfers (NTT) to enable seamless transfers of the W token across blockchains like Solana and Ethereum without needing liquidity pools. This innovation supports Wormhole's introduction of a multichain governance system and W staking, enhancing the token's functionality and security across diverse ecosystems. NTT marks a key step in Wormhole's roadmap, advancing its commitment to interoperability and decentralized, flexible token usage.

Check Out the Latest Prices, Charts, and Data of 

Stripe is reentering the cryptocurrency market by allowing merchants to accept payments in USD Coin (USDC) on Ethereum, Solana, and Polygon networks starting this summer. Originally, Stripe accepted Bitcoin in 2014 but discontinued this option in 2018 due to increasing costs. The new initiative will support USDC transactions that are automatically converted to fiat currency for merchants, aiming to enhance global payment accessibility, particularly for those without traditional banking facilities. This marks Stripe's continued interest in the evolving potential of cryptocurrencies.

Bitcoin's price showed volatility near $64,000, influenced by reduced ETF inflows and a market tug-of-war. U.S. inflows slowed, ending a streak for BlackRock’s iShares Bitcoin Trust. Meanwhile, Morgan Stanley may soon enable direct broker recommendations for Bitcoin ETFs, potentially increasing demand. In contrast to U.S. regulatory hesitations, Hong Kong is launching three spot BTC ETFs. Despite these fluctuations, Fidelity Digital Assets remains optimistic, citing an increase in smaller Bitcoin wallets as a positive indicator of broader adoption.

The Aethir Cloud Drop campaign features an airdrop that is accessible through various activities, including purchasing Aethir Checker nodes, engaging on social media, participating in quizzes, referring friends, and being part of certain NFT/token communities. Eligibility for the airdrop is determined by a badge and quest system. More details are provided on their website and Twitter page.

Beginner

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Stripe Reintroduces Crypto Payments with USDC Support on Multiple Blockchain Networks

Merlin Starter (MSTAR) is an IDO launchpad and accelerator dedicated to supporting Layer 2 projects for Bitcoin native asset applications.

Over the last couple of years, projects aiming to develop the wider Bitcoin (

) crypto ecosystem have been gaining more attention in the crypto industry, taking some focus away from 

-based initiatives. With the arrival of projects such as 

, one might even say that the Bitcoin ecosystem is experiencing a kind of innovative development that characterized Ethereum's heyday between 2015 and 2020.

Among the projects driving this phenomenon are Merlin Chain (MERL) and its integral Merlin Starter (MSTAR). Merlin Chain is a Bitcoin Layer 2 (L2) platform committed to supporting utilization and enhanced liquidity for Bitcoin native assets, while Merlin Starter, a Bitcoin-focused 

 and L2 project accelerator, is a core part of the wider Merlin ecosystem,

 (MSTAR) is an IDO launchpad and Layer 2 accelerator dedicated to supporting promising Bitcoin-focused decentralized projects.

 It's an integral part of the L2 Merlin Chain (MERL), designed to facilitate a seamless flow of Bitcoin native assets across various protocols in the Bitcoin ecosystem. Merlin Starter aims to support projects dedicated to enhancing the circulation and liquidity of Bitcoin native assets, both on Merlin Chain and across a variety of Bitcoin-focused protocols and networks.

Founded in 2023, the Merlin project launched its operations in early 2024, with Merlin Starter's native MSTAR token debuting in mid-April 2024.

Merlin Starter is made up of two main components — an 

 launchpad and a Bitcoin Layer 2 project accelerator. Additionally, the 

 NFT collection is a critical element within the project's ecosystem.

The IDO launchpad on Merlin Starter facilitates the launch of projects dedicated to native asset issuance, enhanced 

 and free asset circulation for the Bitcoin ecosystem. It's the first native launchpad of the Merlin platform. The launchpad also supports new projects that explore cross-chain functionality and focus on enabling Bitcoin native assets across different platforms.

As of late April 2024, the launchpad is still in the early stages of its operation, but already lists a couple of initial projects that it’s helped to launch. The most recent of these is Sparkle (FCFS), a gamified astrology app.

The Merlin Starter launchpad offers a number of different token launch modes, including 

, oversubscription lotteries and allocations based on preset weightings. A variety of token standards are supported, including the highly popular 

 and ERC-20 as well as the less common BRC-420, ERC-404 and Atomicals (ARC-20). Standards supporting cross-chain assets may also be available. 

Merlin Starter’s IDO launchpad also features an insurance protocol that helps protect investors from either 7-day or 14-day loss.

While the Merlin Starter IDO launchpad is dedicated to facilitating the launch of new tokens, its accelerator is an initiative aimed at providing consultancy and support to L2 apps and protocols at the pre-launch stage, as well as in the critical post-launch period.

Via the accelerator, the Merlin Starter team offers multidisciplinary consultancy services in areas such as technical support, marketing strategies and initiatives, human resources and 

Merlin's Spellbook is an NFT collection issued by Merlin Starter. Spellbook NFTs grant holders eligibility for a 20,000,000 MSTAR token airdrop, should they choose to stake the NFT. Staking a Spellbook NFT in exchange for MSTAR locks the NFT, and the NFT is subsequently burned. As an NFT staker, you may also qualify (depending upon random selection) for IDO whitelist entries.

At the center of the wider Merlin ecosystem, Merlin Chain is an L2 platform dedicated to enabling cross-chain applications utilizing Bitcoin native assets. Although it operates as a dedicated Bitcoin L2 network, Merlin Chain also offers 

 (EVM) compatibility in order to better support cross-chain use cases.

 network, which allows it to achieve significant scalability and cost efficiencies. The average block time on the chain is less than one second, while the average transaction fee is measured in tiny fractions of a cent.

Merlin Starter's native crypto, MSTAR, is a recently launched token (April 2024) that’s used for the following functions on the IDO launchpad:

The token's maximum and total supply is 1 billion. Supply allocation shares for MSTAR are shown in the chart below.

You can buy the MSTAR token on Bybit through a Spot pair with USDT (

). Additionally, you can join Bybit's MSTAR campaigns to grab a share of the 

The first campaign, MSTAR Community Airdrop Quest, runs through May 10, 2024, 8AM UTC. It’s offering a total prize pool of 8,900,000 MSTAR, featuring a 7,000,000 MSTAR community airdrop, a 1,000,000 MSTAR referral prize pool and an exclusive affiliate referral event with a 900,000 MSTAR prize pool. The second campaign, Token Splash, is being held through Apr 30, 2024, 9AM UTC, with a 2,800,000 MSTAR prize pool.

As a plethora of projects such as Merlin Starter look to extend Bitcoin's functionality, its blockchain is steadily moving away from a passive state of use that’s reserved for asset transfers and storage. Merlin Starter is contributing a great deal to putting Bitcoin native assets to use in various apps and protocols.

While Merlin Chain is doing the critical job of enabling the actual utilization of assets via its Layer 2 network, Merlin Starter is a pivotal endeavor aimed at supporting numerous new projects looking to make Bitcoin a more active crypto environment. The more of these projects we see, the more likely it is that Bitcoin will develop into a thriving ecosystem that could rival Ethereum’s. To achieve such a goal, Merlin Starter is exactly the catalyst the industry needs.

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Merlin Starter (MSTAR): Empowering Startups and Innovation

Investing

Altcoins

Blockchain

These Ethereum Layer 2 solutions which include Polygon, Mantle and Loopring, are some of the most promising projects that you should take a look at post-Ethereum Merge. 

 mainnet completed its transition from the proof of work (

) consensus mechanism to proof of stake (

," the transformation of Ethereum from the PoW to PoS consensus layer was a highly anticipated event. The transformation has positively affected the price of various Ethereum-based Layer 2 projects. The price of Polygon, one of the most popular Ethereum Layer 2 solutions, rose by 36%. Meanwhile, Optimism registered an increase by over 60%. Investors are also awaiting subsequent developments such as the 

, which would likely push the price of Layer 2 projects further.

So, what are some of the top Ethereum Layer 2 solutions you should consider investing in post-merge? Let's find out.

 protocols are solutions designed to solve the scalability issues related to the main Ethereum base blockchain. Layer 2 is attached to the Ethereum 

 blockchain, which enables it to perform blockchain operations and report them to the main chain.

You can think of these Ethereum Layer 2 solutions as roads leading to the main Ethereum highway. When the Ethereum network gets congested due to high traffic, Layer 2 helps by offloading the traffic to the roads. Ultimately, the congestion is reduced. 

Since Ethereum has reached its capacity of one million transactions per day, the various Layer 2 protocols help Ethereum increase transaction speed without sacrificing decentralization or security. Among other benefits, they also contribute to lowering gas fees and letting developers create new applications with improved user experience. 

In the last two to three years, various Ethereum Layer 2 solutions have emerged. State channels, plasma and rollups are some of the well-known techniques. Each of these has its advantages and limitations. Following is a brief overview:

 allow users to transact with one another outside of the blockchain, enabling instant peer-to-peer Ethereum transactions. While state channels offer high transaction throughput, instant withdrawal and low fees, they suffer from cross-chain interoperability. However, the advent of 

 is another popular Layer 2 solution that uses 

 to create almost unlimited sidechains. Since the transaction and the computation takes place inside sidechains, it helps Ethereum handle much larger data sets. Unfortunately, the withdrawal time can range between 7 and 14 days.

Blockchain rollups are somewhat similar to plasma; however, rollups keep some of the data on Ethereum. The unique mechanism helps elevate security and reduce centralization. You can even run an 

 (EVM) inside a rollup. There are two kinds of rollups: 

. In the long run, ZK rollups may prove more practical due to their shorter withdrawal time.

Investing in Ethereum Layer 2 projects makes sense because Ethereum is the most highly anticipated cryptocurrency that may potentially cause the 

 and overtake Bitcoin as the king of crypto. Ethereum Layer 2 blockchains help to quickly solve scalability issues related to Ethereum which may hasten the Flippening process. The recent hike post-Ethereum Merge in the price of native tokens associated with some of the Ethereum Layer 2 projects is a testament to this theory. 

If you're looking for opportunities, consider these 11 well-established and upcoming Layer 2 projects:

 values are as accurate as of date of publishing (Feb 13, 2023). 

One of the largest Ethereum Layer 2 scaling solutions in the cryptosphere, 

 is a sidechain running in parallel to the Ethereum blockchain. Among its main functions are faster transactions and lower transaction costs. You can "bridge" some of your cryptos to Polygon, enabling you to interact with a wide range of decentralized apps (

) that are exclusive to the Ethereum network.

Polygon's main chain is a PoS sidechain, which is used to validate transactions and vote on network upgrades. Developers can easily build additional sidechains using the Polygon software development kit (SDK). At this time, Polygon supports the development of sidechains using plasma, optimistic rollup, and ZK-rollup construction scalability methods.

 is the first modular Layer 2 protocol built on Ethereum that is initiated by a 

, Mantle expands the utility of BitDAO's governance token, BIT. 

Mantle's modular structure processes different transactions and actions in separate layers operated by network participants at different levels via Ethereum rollups and a decentralized data availability layer. This enables high throughput on lower gas fees with Ethereum-grade security, derived as a result of a restaking mechanism, for any application built on Mantle.

Mantle also aims to decentralize the sequencer, thereby allowing for multiple Sequencer nodes to operate and receive BIT rewards. This reduces the security and operational risks typically faced in existing rollup models.

 seeks to resolve congestion on Ethereum through its high transaction speed of 40,000 

 (TPS) costing about two cents or less in fees. 

The smart contracts on Arbitrum are validated using optimistic rollups. However, Arbitrum stands out for EVM compatibility. It means that DApp developers can build their apps within the Arbitrum mainnet without learning a new coding language. For instance, if you already know the coding language used for developing smart contracts on Ethereum, you don't require additional skills.

Arbitrum doesn't have a native token. Until a native token is introduced, the most direct way to invest in Layer 2 is by investing in projects that are native to the rollup. 

As the largest DeFi project on Arbitrum, 

 is a viable candidate worth investing in. 

 of the decentralized GMX exchange. Deployed on Arbitrum, the exchange is a spot and perpetual contract decentralized exchange (DEX) with outstandingly low fees and zero slippage. 

 is a major competitor of Arbitrum. While it's somewhat similar to Arbitrum, Optimism uses the optimistic rollups introduced by the Optimism Foundation. These optimistic rollups assume that every transaction is valid. Any fraudulent transaction is rolled back after participants submit 

Both Optimism and Arbitrum are similar because they only deploy when faulty blocks are identified. Accordingly, tokens on these networks can flow between Layer 1 and Layer 2. The mechanism to confirm a block is also identical. 

Besides enhancing the scalability of the Ethereum ecosystem, Optimism helps maintain the security of transactions. Individual nodes on the network put a stake to suggest a new block, and each note has the power to challenge the validity of the transaction.

Optimism is a good alternative to invest in since Arbitrum has no native token. 

 (NFTs) on the Ethereum blockchain. This Layer 2 offers 

 gaming developers a way to launch NFT projects quickly with near-zero gas fees and scalable features. 

The technology uses ZK-rollup. Instead of dumping all the transaction data on the blockchain, the system batches together hundreds of separate transactions into a single zero-knowledge proof known as ZK-STARK and processes the transactions off-chain.

Immutable X is also the first ZK-rollup technology that solely focuses on NFT projects. The unique mechanism requires less storage and computing resources to validate an entire block of transactions. NFT projects benefit from the speed because the network can accommodate over 9,000 NFT trades each second. The zero gas fees for minting or launching a 

ecosystem is an added incentive for developers. 

 is an upcoming Ethereum-based Layer 2 blockchain that will boost the utility of the famed 

, has gained enormous success mainly due to the hype created around the concept. Despite the growth, the community always wanted an ecosystem that could sustain its growth in the long term. The debut of the Shibarium L2 layer is the answer to such concerns. 

The sidechain will take over a large portion of the SHIB transactions, so SHIB doesn't have to rely on the Ethereum network. As a result, users will likely experience massive improvements in transaction speeds along with gas fee reductions.

The prices of SHIB and related Shiba Inu tokens are already increasing in anticipation of the launch. If you're a fan of Shiba Inu, it should be a no-brainer to consider SHIB and other tokens in the SHIBA ecosystem. BONE, the governance token of 

, Shiba Inu's DEX, is another logical choice to invest in as it is slated to become Shibarium's utility token.

 is a Layer 2 scaling protocol that facilitates noncustodial order book-based DEXs and payment protocols. Deployed in December 2019 on the Ethereum mainnet, it is reputed to perform more than 2,000 TPS while maintaining the same level of security as Ethereum. It uses ZK-rollups for the payment system that lets users exchange digital assets such as cryptocurrencies. 

Loopring has tremendous potential to grow further as DEXs and 

 are predicted to flourish in 2023. You can trade LRC as a Spot pair (

 is the execution-layer EVM Layer 2 sidechain to facilitate the development of DApps and NFTs. It uses the xDai 

 to facilitate transactions and pay for smart contracts and gas fees. The native token of the Gnosis ecosystem, GNO, is used for staking on the Gnosis Beacon Chain and for governance in the GnosisDAO. Gnosis Chain is a part of the Gnosis Beacon Chain.

Gnosis Chain was the first Ethereum sidechain solution that had a U.S. dollar-pegged stablecoin as a transactional token. The main goal of the Gnosis Chain is to provide stable, low-cost and optimized transactions for Ethereum-based projects. By focusing on specific goals, the chain can offer developers 100% uptime, $0.0001 per 100K gas, and 5 seconds of block time. 

According to the official website, the Layer 2 blockchain is secured by over 100K validators delivering a yield of almost 16% on staked assets. It takes only $117 to validate with Gnosis Chain. Its advanced technology, simple concept and strong governance make GNO a viable candidate for future growth. 

 is a Layer 2 web3 network that is highly interoperable, allowing developers to create a variety of DApps on the SKALE elastic sidechains instead of the Ethereum mainnet. It is a highly scalable infrastructure that creates an environment suitable for implementing multiple protocols, virtual machines and enhanced security measures.

It is perhaps the largest Layer 2 blockchain network, which is capable of running an unlimited number of fast, on-demand, pooled-security blockchains with zero gas fees. At the time of writing (Feb 8, 2023), the market cap of SKALE is $177.6 million. 

SKALE operates in an integrated manner with Ethereum while running its own consensus mechanism. Accordingly, developers can create an unlimited number of configurable SKALE chains that are independent of each other. All of these independent chains are interoperable and EVM-compatible, which means that anyone can easily deploy existing Ethereum-based smart contracts directly on SKALE chains. 

According to its founders, SKALE can process 120,000 TPS using SKALE’s modular architecture comprising 1,000 chains. Without a doubt, the unique architecture holds a lot of promise that can make SKALE flourish. 

 on the Bybit exchange as a USDT Perpetual (

 is a decentralized ZK-rollup that operates on a Layer 2 network over Ethereum. StarkNet uses Validity Proofs called STARK-Proofs that are produced off-chain and validated on Ethereum. Validity Proof is a form of ZK-Proof that lets a party prove that a computation is executed correctly, thereby maximizing privacy and security for the transaction data.

, you can still benefit from StarkNet's growth by investing in the projects built on it. Immutable X as mentioned above is one such project. Another logical investment choice is 

, an order book model DEX built in early 2022. 

11 Best Layer 2 Crypto Projects To Check Out Post-Merge (2023)

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