Win The Bull Market! 5 Layer 2 Crypto To Buy Should Bitcoin Reclaim $72,000 - August 2024

As an experienced analyst, I firmly believe that investors seeking potential gains in the upcoming Bitcoin bull market should consider adding exposure to layer 2 crypto projects. These projects play a crucial role in bringing volume and positively impacting the Bitcoin blockchain. Based on my research, I recommend the following layer 2 cryptos for your consideration:

For individuals looking to capitalize on potential gains in the upcoming Bitcoin bull market, exploring investment opportunities in layer 2 cryptocurrencies could be an effective strategy. These digital assets either directly or indirectly relate to Bitcoin. While Bitcoin itself has experienced a mini-rally since January, reaching a new peak price of $73,837, it’s believed that the major surge is still on the horizon.

Projects at the second layer of the Bitcoin network will play a crucial role in increasing its transaction capacity and should not be overlooked in investment portfolios. These second-layer cryptocurrencies hold significant promise for enhancing your portfolio’s performance in the years 2024 and 2025.

1. Crypto To Buy – SatoshiVM (SAVM)

SatoshiVM is a Bitcoin ZK Rollup layer 2 solution that uses native BTC as gas. SAVM is the native token of the layer 2 network and is used for governance. SatoshiVM is also fully compatible with the Ethereum Virtual Machine (EVM) while using Bitcoin as the settlement layer. The project has a myriad of tools being built on it, including a decentralized exchange that includes a DeFi yield protocol for staking and BTC yield.

Since the debut of SatoshiVM’s alpha mainnet in March 2024, its price has been steadily declining. Despite this downtrend, however, trading volume is picking up, suggesting investors are stockpiling and anticipating a price surge. With a market capitalization of $21 million, SatoshiVM represents a promising opportunity for those seeking investments in the upcoming Bitcoin DeFi season.

2. Elastos (ELA)

Since its early days in the cryptocurrency world, Elastos has positioned itself as a pioneer in creating a more intelligent and advanced digital landscape, often referred to as the “Smarter Web.” By leveraging the security and stability of Bitcoin, Elastos aims to provide a more secure and private digital ecosystem that is smarter than existing platforms.

With the tech infrastructure Elastos has constructed, developers can create second-layer networks as an addition. Notably, Elastos is working on BeL2, a two-layered protocol linking Elastos and Bitcoin, enabling EVM smart contracts to operate directly above Bitcoin.

As an analyst, I’ve observed that the current price of Elastos (ELA) stands at $2.62, and its market capitalization amounts to $54 million. Looking back in time, the all-time high price of Elastos was recorded over six years ago, reaching a significant peak of $89.14. This historical data underscores the immense potential hidden within this project.

3. Merlin Chain (MERL)

Merlin Chain is a natively-built Bitcoin Layer 2 network brought to life by Bitmap Tech, and it expands upon the fundamental assets, protocols, and tools of the Bitcoin Layer 1. This secondary network has made significant progress in connecting Decentralized Finance (DeFi) to Bitcoin through the creation of a practical bridge.

Via the Merlin Bridge connection, approximately 190,000 Bitcoin, equivalent to around 12.9 billion USD, have been transferred to various other platforms such as Solana, Binance Smart Chain, Ethereum, and Manta.

The current cost of Merlin (MERL) is currently lagging behind its underlying value based on market fundamentals. At present, MERL hovers around $0.5 – a 7% rise in the past week. However, this represents a significant decrease of 65% compared to its record high of $1.45 two months ago. For those entering the market now, they could potentially secure a 65% price reduction as MERL’s value may spike during Bitcoin’s upcoming rally.

4. Stacks (STX)

As a crypto investor, I’m always on the lookout for promising projects that build upon the foundation of established cryptocurrencies like Bitcoin. One such project that has caught my attention lately is Stacks (STX). Stacks operates as a Layer 2 network specifically designed for Bitcoin, enabling the deployment of smart contracts and decentralized applications with Bitcoin serving as a secure base layer.

The Stacks market soared along with its price, rising to $2.88 billion. The STX daily trading volume also surged by 215%, signaling a recent rise in market activity.

Two months ago, Stacks reached its peak price of approximately $3.86 – an all-time high. The path back to that price might seem straightforward, but the potential return on investment could be minimal. Nevertheless, as the cryptocurrency favored by Grayscale among Bitcoin Layer 2 projects, STX‘s price may experience further growth in the near future. If Bitcoin were to revisit its previous high of $72,000, STX’s gains could potentially soar exponentially.

5. Optimism (OP)

Optimism, which is a widely recognized Ethereum Layer 2 solution, has recently attracted attention from Build on Bitcoin (BOB), the pioneering hybrid Layer 2 platform that bridges Bitcoin’s security with Ethereum Virtual Machine (EVM) liquidity, due to its ongoing expansion.

The emergence of Bitcoin following the launch of the BOB network could potentially influence the value of the Optimism network’s token, OP.

As an analyst, I’ve observed that despite a 4.5% decrease in OP price over the past week, the token has managed to hold its ground. In March, Optimism made headlines with a private sale of $89 million worth of 19.5 million OP tokens. This news elicited varied reactions within the Ethereum community and led to a temporary price dip. However, it’s essential to remember that Optimism is a robust project with continuous development efforts underway.

Conclusion

Exploring the possibility of investing in secondary crypto layers prior to Bitcoin’s next bull run phase could significantly increase your portfolio. Nonetheless, it is crucial to conduct thorough research before making any investments in second-tier cryptocurrencies.

2024-06-04 19:12