Which Layer 2 will be next?
Spring is in sight for crypto, with altcoins across the market sending out green shoots as we move into February.
The improving conditions come as the Federal Reserve acknowledges cooling inflation, and new partnerships and product launches continue to push the industry towards mainstream adoption.
Leading the action, these market-moving events could be presenting big opportunities for investors. Immutable X and Loopring are both riding higher on a wave of interest in Layer 2 networks, followed by Litecoin which has released a new card that could help boost adoption.
Read more after the jump.
This week’s focus
– Loopring adds 15% — is this the start of “Layer 2 season”?
– Will Immutable’s new Passport take it to the moon?
– Litecoin hits $100 on Mastercard partnership and more
Loopring adds 15% — is this the start of “Layer 2 season”?
Layer 2 scaling solutions were all set for a big year in 2022, with the “L222” meme taking over Crypto Twitter before falling prices and crypto bankruptcies disrupted the trend.
Yet the potential of Layer 2 scaling projects, which increase blockchain capacity by taking transactions off-chain, has not been diminished: they are still expected to lead to lower fees and improved scalability, and could still help millions enter the crypto market in 2023 and beyond.
Kicking things off, Layer 2 Loopring is up 15% over the last week, after the project announced a Web3 gaming partnership that could attract more users by launching games on the protocol.
In the coming weeks, Loopring’s rally could be echoed by other Layer 2s such as Polygon, which is soon set to release its highly-anticipated zkEVM mainnet, and Shiba Inu, which is expected to launch its own Shibarium Layer 2 on Valentine’s Day.
Will Immutable’s new Passport take it to the moon?
With ambitions of using zero-knowledge proofs to power a blockchain gaming revolution, Immutable X is leading two of the hottest crypto market trends.
Over the last week, the token popped more than 30% on news of the Immutable Passport. Similar to an Xbox Gamertag or an Apple ID, this provides an all-in-one access tool for onboarding gamers to web3, and according to the team, will help welcome a billion players to the growing ecosystem.
That might sound ambitious, but Immutable X has the financial firepower to make it happen. Collectively, projects in the Immutable X ecosystem games raised $900 million in 2022, and Polygon, added $850 million to its war chest over the same period.
Litecoin hits $100 on Mastercard partnership and more
After sinking below $50 in the bear market last year, Litecoin is once again hitting the $100 mark.
The surging prices follow news that Litecoin Card, created in partnership with Mastercard, is now available in the UK and Europe. This adoption milestone will enable people across the continent to pay for goods and services using one of the oldest and most trusted cryptoassets.
In addition, Litecoin’s rally may also be supported by the commitment of miners and large investors. The blockchain’s hashrate has recently hit an all-time high, suggesting that mining Litecoin is more popular than ever, and on-chain data shows a growing number of whale-sized transactions in 2023.
Looking ahead, Litecoin is likely to stay in the spotlight until the halving event this coming August. Similar to Bitcoin‘s halving, this will cut Litecoin’s pace of supply expansion by 50%, and has historically been preceded by surging prices.