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I noticed that many people still confuse the terminology of L1 and L2. Let's clarify what it's all about.
Layer 1 blockchains (L1) are independent networks with their own blockchain. Their creators wrote the code from scratch, implementing a specific idea. Projects like Bitcoin, Ethereum, BNB fall into this category. This is the foundation, the base of everything.
Now, L2 is a different matter. These are blockchains that operate on top of L1 solutions. They take an existing network and improve it: scale it, speed it up, eliminate bottlenecks. Examples include Optimism, Arbitrum, Mantle. An interesting approach — they leverage the advantages of L1 but avoid its limitations.
There is also L0 — like a network framework working beneath all the others. It allows connecting different L1 and L2 solutions together. Projects like Polkadot, Cosmos, Avalanche are examples.
Why does this matter? Because investors have long noticed an interesting pattern. L2 tokens often show more dynamic development than established L1 networks. They are younger and have greater growth potential.
Honestly, I see that many with significant capital still fill their portfolios only with Bitcoin and Ethereum. Maybe it’s worth looking at alternatives? BNB, for example, consistently holds steady. But it also makes sense to pay attention to L2 tokens with smaller market caps — they can offer interesting opportunities for those willing to accept higher volatility.
If you're interested in this topic, I can tell you more about specific projects and their prospects. Check out current prices: Ethereum is trading around $2.33K (+0.82% in 24 hours), BNB is at $619.60 (+0.17%), XRP at $1.39 (-0.07%). The market is constantly changing, so it’s always useful to keep track of the dynamics.