On September 15, 2022, the Ethereum mainnet completed a merge, moving from the Proof of Work consensus (PoW) layer to the Proof of Stake (PoS). This move has caused prices for various Layer 2 projects to skyrocket, including Polygon, Optimism, and Arbitrum.
Ethereum introduced the Layer 2 project to solve the scalability drawbacks associated with the network. The project will help reduce Ethereum (ETH) transaction fees and improve transaction speed without compromising transaction security and decentralization. Below are current Layer 2 projects that are experiencing a market boom.
Optimism (OP)
Optimism utilizes an optimistic rollup to bundle large numbers of transactions and reduce pressure on the Ethereum blockchain. This Layer 2 solution greatly improves transaction speeds by facilitating interactions with off-chain code, including wallets.
OP has broken records in the past few months, with a 190% increase in daily users and a more than 180% increase in daily network charges. The value of the OP token has also skyrocketed, recording a price easing of over 600% and a market cap of over $1 billion in the last 12 months.
![Layer 2 projects that boomed after The Merge - 1](https://crypto.news/app/uploads/2023/02/optimism-price-chart-1024x548.png)
Polygon (MATIC)
Polygon, originally known as MATIC, is an Ethereum Layer 2 scaling service that uses a sidechain system to process critical transactions on the Ethereum mainchain. Scaling services facilitate cheaper and faster transactions while maintaining Ethereum mainchain security.
Polygon has seen a significant increase in users over the last few months, with over 1000% price increase and over $10 billion market capitalization as of February 19, 2023. According to market cap, it has a market cap of $11.2 billion.
![Layer 2 projects that boomed after The Merge - 2](https://crypto.news/app/uploads/2023/02/polygon-matic-1024x549.png)
Arbitrum
Arbitrum utilizes a smart contract system to bundle many transactions from the main chain. The system provides easy access to DeFi apps and fast and affordable transactions. Arbitrum’s user numbers have skyrocketed in recent months, increasing by more than 40%, with daily users surpassing his 42,000 and daily transaction fees surpassing his $40,000. The platform hit an all-time high for unique addresses recorded on Arbitrum on Feb. 23 as the network surpassed Ethereum in daily transactions.
The possibility of an airdrop in the near future also contributes to the increase in Arbitrum’s trading volume. Arbtrum does not have a native token, but GMX, the governance and utility token of the GMX exchange, is deployed on the network. GMX claims its position in the market with a market cap of $563.76 million and his TVL value of $538.17 million.
![Layer 2 projects booming after The Merge - 3](https://crypto.news/app/uploads/2023/02/gmx-usd-1024x541.png)
Immutable X
Immutable X is a layer 2 scaling solution and the first ZK rollup technology for NFTs on the Ethereum blockchain. The Immutable X solution enables web3 game developers to start NFT projects faster with negligible gas costs and highly scalable features.
Immutable X’s growth rate has fluctuated over the past year. The IMX token has a market capitalization of $847,875,611 and a trading volume of $50,809,099 as of February 23, 2023.
![Layer 2 projects booming after The Merge - 4](https://crypto.news/app/uploads/2023/02/imx-1024x542.png)