Best Layer 2 Cryptocurrencies 2026
Layer 2 solutions are protocols built on top of Layer 1 blockchains to improve scalability and reduce transaction costs.
Layer 2 networks process transactions off the main chain and then anchor them back to Layer 1. They inherit its security while offering faster and cheaper transactions. The main types include rollups (Optimistic and Zero-Knowledge), sidechains, and state channels. They are essential to making blockchains usable for everyday transactions and mass adoption.
Layer 2 Coins
FAQ
What is a Layer 2 solution?
A Layer 2 solution is a protocol built on top of a Layer 1 blockchain that processes transactions off-chain to increase speed and reduce costs, while relying on the main chain's security.
Why are Layer 2 solutions needed?
Layer 1 blockchains like Ethereum can process only a limited number of transactions per second, which leads to high fees during heavy usage. Layer 2 solutions address this by handling transactions off the main chain.
What are the main types of Layer 2?
The main types are Optimistic Rollups (used by Arbitrum and Optimism), ZK-Rollups (used by zkSync and StarkNet), and sidechains (such as Polygon PoS).