Almost every cryptocurrency has reached its lowest price due to the crypto winter spread across the industry in 2022. Market-wide decreases obscure a number of complexities and outliers. As a result, many investors are looking for the best recession-proof cryptos with high upside potential.
However, due to the fees, Ethereum-based layer 2 solutions have recently gained a lot of attention. Since the Ethereum price is relatively stable, the layer-2 chains built on the platform are also preparing for a significant rally.
While Bitcoin was the market’s focal point throughout 2021,
Surprisingly, many Ethereum-based coins, such as ETH, outperformed BTC in the market, reducing its dominance from over 70% to less than 40%.
Here’s a closer look at the top three Ethereum-based Layer-2 chains to watch in Q4 2022:
Polygon (MATIC):
Polygon (previously Matic Network) is the first well-structured, user-friendly Ethereum scaling and infrastructure development platform. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications. Matic tokens are traded on the Ethereum blockchain rather than on their own blockchain.
MATIC broke through resistance at $0.84 and reached monthly highs around $0.87. According to an analysis of Polygon prices expected in 2022, the price could be as low as $0.89 or as high as $0.97, according to the Changelly blog. The average prediction is approximately $0.92.
OMG Network (OMG):
OMG Network is an Ethereum blockchain-based Layer 2 scaling solution. It enables users to transfer ETH and ERC20 tokens at a lower cost and faster compared to using the Ethereum Network directly.
The current CoinMarketCap ranking is #123, with a live market cap of $218,965,633 USD. It has a circulating supply of 140,245,398 OMG coins. Despite the recent rejection from $1.65, the asset appears to be quite bullish, as it could spark a strong upswing at any time.
Loopring (LRC):
Loopring (LRC) is an open protocol designed to build decentralised cryptocurrency exchanges. Besides that, using zero-knowledge proofs, users can create a non-custodial, order book-based exchange on the Ethereum network (ZKPs).
LRC is currently ranked 101 on CoinMarketCap, with a live market cap of $332,409,782 USD. It has a total supply of 1,374,513,896 LRC coins and a circulating supply of 1,330,133,546 LRC coins.
