L2 Coins: Core Tokens of Blockchain Scaling Solutions

L2 coins are the native tokens of Layer 2 blockchain scaling solutions. These Layer 2 solutions are built on top of Layer-1 blockchains (such as Ethereum), with the primary goal of addressing the main chain's challenges like scalability, slow transaction speeds, and high transaction fees, while striving to inherit the main chain's decentralization and security.

Layer 2 networks significantly enhance transaction throughput and drastically reduce fees by processing most transactions off-chain, and then batching the transaction results back to the main chain for final verification. L2 coins, as utility tokens for these Layer 2 networks, are typically used to pay for transaction fees within the network, participate in network staking to maintain its security, and engage in community governance, granting holders voting rights on the network's future development.

What are L2 Coins? An Analysis of Mainstream Layer 2 Network Tokens and Their Trading Avenues

Mainstream L2 Technology Types

Currently, L2 technology is mainly divided into two categories:

  • Optimistic Rollups: This technology assumes off-chain transactions are valid and allows for a challenge period (typically 7 days) for transactions. If a challenge is successful, the transaction is rolled back. Representative projects include Arbitrum and Optimism.
  • ZK-Rollups (Zero-Knowledge Proof Rollups): This technology uses zero-knowledge proofs to verify the validity of off-chain transactions, allowing for immediate transaction confirmation without waiting for a challenge period. Representative projects include zkSync, Starknet, and Polygon zkEVM.

In addition to the Ethereum ecosystem, there are also Layer 2 solutions for the Bitcoin mainnet, such as the Lightning Network, aimed at improving Bitcoin's transaction speed and cost-effectiveness.

Examples of Major L2 Coins and Their Functions

Arbitrum (ARB)

What are L2 Coins? An Analysis of Mainstream Layer 2 Network Tokens and Their Trading Avenues

Arbitrum is one of the most mature Optimistic Rollup solutions in the Ethereum ecosystem, offering high EVM compatibility, which allows decentralized applications (dApps) to migrate seamlessly, achieving higher transaction throughput and lower Gas fees. ARB is its governance token, launched in March 2023, with a total supply cap of 10 billion. On the Arbitrum network, transaction fees are primarily paid using ETH.

Optimism (OP)

Optimism is another Layer 2 scaling solution based on Ethereum, also using Optimistic Rollups technology to increase transaction speed and reduce fees. OP is its governance token. In October 2022, Optimism launched the OP Stack, a modular, open-source development stack that supports building more Layer 2 chains based on the Optimism technology stack, forming the "Superchain" vision.

Polygon (POL)

Polygon, formerly Matic Network, is a Layer 2 scaling solution for Ethereum, designed to provide faster and cheaper transactions. Its native token MATIC was used to pay transaction fees, stake to maintain network security, and participate in governance. Notably, Polygon migrated and upgraded its native token from MATIC to POL in 2024. The POL token inherits the functionalities of MATIC and provides broader utility for the Polygon 2.0 ecosystem, including supporting interoperability and security for multiple Polygon chains. The total supply of POL is set at 10 billion.

What are L2 Coins? An Analysis of Mainstream Layer 2 Network Tokens and Their Trading Avenues

zkSync (ZK)

zkSync is an Ethereum Layer 2 scaling solution developed by Matter Labs, utilizing zero-knowledge proofs (zk-SNARKs) to achieve fast, cheap, and secure transactions. zkSync Era (v2) launched in March 2023 and is one of the first fully EVM-compatible ZK Rollups. ZK is its governance token, distributed via airdrop in June 2024, accounting for approximately 17.5% of the total supply of 21 billion tokens.

Starknet (STRK)

Starknet is an Ethereum Layer 2 scaling solution that uses validity proofs (STARK proofs) to achieve fast, low-cost transactions. STRK is its native token, used to facilitate transactions and governance within the ecosystem. The STRK token was launched on the Ethereum mainnet in November 2022 and became available to the public in February 2024. Its maximum supply is capped at 10 billion. As of August 13, 2026, the price of STRK is approximately $0.0232, with a total market capitalization of about $158 million.

Platforms for Trading and Buying L2 Coins

L2 coins can be traded and bought on various platforms:

What are L2 Coins? An Analysis of Mainstream Layer 2 Network Tokens and Their Trading Avenues

  • Centralized Exchanges (CEXs): Many major L2 tokens can be traded on globally renowned centralized exchanges, such as Binance, OKX, KuCoin, Coinbase, Bybit, Bitget, and Gate.com, among others. Users typically need to complete registration and identity verification (KYC) processes, and then purchase L2 tokens using fiat currency or other cryptocurrencies.
  • Decentralized Exchanges (DEXs): For Ethereum L2 tokens, users can connect a Web3 wallet like MetaMask to the corresponding L2 network (such as the Arbitrum network or Optimism network), hold the native token of that chain (e.g., ETH) for gas fees, and then swap tokens on a DEX. The Starknet ecosystem also has its unique DeFi applications and DEXs.
  • Contract for Difference (CFD) Trading Platforms: Some financial platforms offer CFD trading for L2 coins, allowing investors to engage in two-way trading with leverage. However, please note that CFD trading typically involves high risks.

Please be aware that the cryptocurrency market is highly volatile. Before investing, ensure you fully understand the associated risks and comply with local laws and regulations.