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Author Topic: Ethereum Layer-2 is very successful, which native tokens are you investing in?  (Read 34 times)
Vincom (OP)
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August 14, 2024, 06:49:53 AM
 #1

Ethereum's network once struggled with sluggish transaction speeds and exorbitant fees. However, the emergence of Layer-2 solutions has significantly improved the network's performance. This burgeoning ecosystem has witnessed explosive growth, with daily transactions increasing by 140% year-to-date, as reported by Cointelegraph [1].

Layer 2 solutions are revolutionizing Ethereum. By significantly reducing gas fees, they're making it more accessible for users to participate in the network. This increased usability is driving broader Ethereum adoption across various sectors. While this surge in activity has led to a decrease in Ethereum transactions and ETH burned, resulting in renewed ETH inflation, these factors are unlikely to sway an investor's long-term buy-and-hold strategy [2].

The recent surge in Layer-2 adoption has piqued my interest in their native tokens, such as MATIC, ARB, and OP. Despite their current valuation, I anticipate a substantial uptrend in the Layer-2 sector, which could significantly benefit investors holding these tokens.

I would like to know your opinion on this issue:
  • Do you think the success of Layer-2 is also the success of Ethereum?
  • Are you holding any native tokens of Layer-2?
  • Are you planning to invest in tokens in the Layer-2 ecosystem this season?

References:
[1] Ethereum L2 ecosystem processes a record 12.4M transactions in a day
[2] Ethereum Inflation Surges with Burn Rate Decline: Layer-2s Vital in Dynamics – ETH Price May Bottom

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August 14, 2024, 07:31:47 AM
 #2

I think it's the other way around.

1. The success of Ethereum is the success of layer 2 projects, you can't beat the OGs in this crypto space, even if they aren't fast enough they will be the best option before other alternatives, that's why we will likely never see another layer 2 take the second position on coinmarketcap.

2. Yes I do hold some like OP, Arb and others and I also included few new ones like LightLink and SRK but I am in for gains only, I don't care much about what the projects have in stock for the long run.

3. I already filled up my bags, but I don't do layer 2 only, because some will still fail, I am into gaming, RWA and AI too, which I believe will gain some momentum when BTC dominance starts decreasing.

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August 14, 2024, 09:39:49 AM
 #3

There are only three layers 2 that are wanted in the crypto space, and the first ones here are Matic, Arb, and OP. These ones I mentioned will surely have something to release when Bitcoin's
rally starts a few months from now.

And there are a lot of people waiting there for sure, so with the opportunity we have right now, let's just accumulate until we have a chance to do it, and even if
it's just a small amount gradually, that's fine.

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Sayeds56
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August 14, 2024, 09:51:56 AM
 #4

I think it's the other way around.

1. The success of Ethereum is the success of layer 2 projects, you can't beat the OGs in this crypto space, even if they aren't fast enough they will be the best option before other alternatives, that's why we will likely never see another layer 2 take the second position on coinmarketcap.

2. Yes I do hold some like OP, Arb and others and I also included few new ones like LightLink and SRK but I am in for gains only, I don't care much about what the projects have in stock for the long run.

3. I already filled up my bags, but I don't do layer 2 only, because some will still fail, I am into gaming, RWA and AI too, which I believe will gain some momentum when BTC dominance starts decreasing.

You sound like a professional trader who prefer to book gain in the shortest possible by using their technical skills and don't bother much about holding assets for long.

Among L2 chains of Ethereum, I believe OP is worth investing for long term due to its ongoing technological advancement, it is also possible that OP could be used to pay transactions fees, adding to its utility. Its current price is attractive for investing and holding for the next bull run to book decent profit.

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August 14, 2024, 10:01:08 AM
 #5

I love OP and had good times using its scanner and low fees (don't forget about the OP rollups, of course), so, I do believe that it brings that fame back to ETH as a whole. I do think to hold some OP for the future to come.

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August 14, 2024, 10:28:46 AM
 #6

1. Do you think the success of Layer-2 is also the success of Ethereum?

Yes, Ethereum (ETH) can't accommodate the transaction rate which continues to increase from day to day, with L2 such as Arbitrum (ARB) and Optimism (OP) it can create new options for adopters so that it will not be too burdensome on the native Ethereum (ETH) network.

2. Are you holding any native tokens of Layer-2?

Yes, some of Optimism (OP).

3. Are you planning to invest in tokens in the Layer-2 ecosystem this season?

Maybe in early October I'll think about my investment plan in this type of token, end of October choose the token and wait until the U.S. election finished.

R


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