Cryptoverse: ‘Layer two’ tokens enjoy new life as Bitcoin soars

It’s next-level stuff. “Layer 2” cryptocurrencies native to projects built on top of “layer 1” blockchains such as Bitcoin and Ethereum – have found a new lease of life after a year in the doldrums, buoyed by a rising crypto tide.

Anticipation of easing U.S. borrowing costs and a possible U.S. spot bitcoin exchange-traded fund have lifted crypto prices since the summer, with market bitcoin gaining by about half since the end of August.

Tokens associated with layer 2 projects – which typically aim to speed up transactions and cut costs – have a combined market cap of about $14.3 billion, about a tenth of the total crypto market, according to data from CoinMaketCap.com.