Layer 2

The cryptocurrencies listed in this section are associated with Layer 2 blockchain scaling solutions. Layer 1, or base blockchains, like Bitcoin and Ethereum, are optimized for maximum security and decentralization, sometimes to the detriment of speed or performance.

By moving transactions to layers above the base chain, Layer 2 protocols reduce demand for block space, making transactions faster and cheaper. Subsequently, fees for using the base layer drop, extending the network's utility to more users. Efforts like rollups on Ethereum and the Bitcoin Lightning Network are examples of Layer 2 crypto projects.

Many Layer 2 blockchain scaling solutions have their own native crypto assets, a number of which are available to trade on OKX. These assets provide incentives to holders participating in consensus mechanisms or other network functions.

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  • What is a Layer 2 blockchain?
  • What is the difference between Layer 1 and Layer 2 blockchains?
  • Why do Layer 2 blockchains matter?
  • What are the best Layer 2 cryptos to buy?
  • Where can I buy Layer 2 cryptos?