Crypto trader and analyst Ivan Liljeqvist is pulling the curtain back on five altcoins that he says are ready for the next cycle of crypto hype.
In a new video, the analyst known as Ivan on Tech explains to his 415,000 subscribers that the display of Ethereum-based Layer 2 scaling solutions could dominate the next phase of the bull market.
“Ethereum is not just going to lag, and we’re seeing that with Layer 2s right now. I think the next step right now is to move projects from Layer 1 to Ethereum to Layer 2.”
Layer 2 protocols reduce network congestion in Ethereum by processing some off-main-chain operations. The solution can process a significantly higher volume of transactions faster and cheaper, which can then be processed in the Ethereum network.
While Layer 2 solutions show promise to help scale Ethereum, the ecosystem is currently fragmented, according to Liljeqvist.
“With all the different projects on Ethereum, different types of scaling solutions are being carried out and different Layer 2 are selected, while Binance (BNB) is just one solution.”
The cryptanalyst points out that despite the fragmentation at level 2 of Ethereum, there is potential for protocols to be the next big pacemaker in space.
“It is very important to study and analyze the various Layer 2 alternatives as we will focus on one of them. It can either be Matic (Polygon). Matic is probably a leader right now if you look at various projects being launched on Matic. On Matic you have Quickswap (Quick) and they have the ability to trade all types of assets on Matic through Quickswap, similar to Uniswap. ”
In addition to the tandem of Matic and Quickswap, Liljeqvist also wants to keep an eye on other promising Layer 2 solutions.
“You have to try Honeyswap (HNY) on xDAI. Also watch out for dYdX. dYdX runs on strong ware. So you see three different solutions for Ethereum: xDAI with Honeyswap, Matic with Quickswap and dYdX for strong goods. “
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