The year 2022 has started, and it looks to form a strong base for the adoption of the L2 Ecosystem. It has already been accepted by ZK rollups, Lightning network, and optimistic rollups.
Will 2022 Be The Year For Layer 2?
Layer 1 Ecosystem ruled 2021 despite carrying flaws related to gas fees, scalability issues, and processing a transaction. The community has high hopes that these issues will be resolved with the L2 Ecosystem.
Polygon has already used ZK rollups to resolve the issues that were in the L1 protocols. This resulted in the higher growth of the blockchain network.
What marks this special is the $400 million acquisition of Mir protocol by Polygon in the previous year. The acquisition works well with the network as it increases the speed and lowers the cost of a transaction.
The Polygon community has also come forward to welcome the token.
Experts, therefore, predict that 2022 may be ruled by the Layer 2 Ecosystem while being led by Polygon (Matic) throughout the year.
The initial six months of 2022 have been predicted to be in favor of Ethereum. It is being said that Layer 2, adopted by Ethereum, will take shape in the first half of the year with many projects lined up for the launch.
Ethereum has also scheduled the launch of certain projects on Layer 2 protocols. With this, the competition between Layer 1 and Layer 2 will officially begin.
Layer 2 Protocols get an edge as all the major Cryptocurrency exchange platforms are expected to deploy instant withdrawal and deposit features. One drawback that may come in the way is that the foundation layer transactions of Ethereum can be unavailable for users who fall in the average category.
Capital investments begin to shift their side to the Layer 2 Ecosystem. With this, traders can expect a higher Trade Volume Locked, also known as TVL, to get piled up by cross-chain bridges.
Polygon prices will fluctuate throughout the year amid the adoption of a new set of protocols. You can stay in the loop by reading this MATIC price prediction.