The cryptocurrency market was trading in the green today as Bitcoin’s sustained rally above $60,500 sparked bullish sentiment in the altcoin space. While the top ten digital tokens by market cap are up 3% on their daily charts, the increased investor sentiment has seen Immutable (IMX) surge 10% in the past 24 hours.
Meanwhile, IMX has extended its weekly gains by 16% to $1.32 at the time of writing. In addition to the broader market recovery, renewed optimism about layer 2 blockchain has added to Immutable’s recent gains.
L2 protocols use advanced technologies such as sidechains, plasma chains, and mergers to improve transaction efficiency and speed.
These projects have seen increased user activity in recent times, and Immutable has emerged as one of the winners. Token Terminal data shows that Immutable is the third-largest Layer 2 network by daily active users, clocking in at 249,700.
Base leads the statistics with over 739,000 daily active users, while Arbitrum is second with 358,000.
Immutable is a secure Ethereum layer 2 platform for blockchain games and non-fungible tokens.
The potential resurgence of the NFT sector, demonstrated by the recent collaboration between Casio’s G-shock brand and the STEPN GO money-making project, has likely bolstered IMX’s sentiment.
Additionally, blockchain games have gained increased attention due to the ongoing hype around making money on Telegram.
These events have reignited optimism about second-layer blockchains, which has been the catalyst for the recent price surge in the corresponding altcoins.
Understanding Layer 2 Blockchains
L2 are additional mechanisms or protocols built on top of the existing network (Layer1) to address performance and scalability issues.
Layer 2 solutions reduced the transaction load on primary blockchains, increasing network efficiency by reducing congestion.
These secondary blockchains increase scalability and speed, some of the most sought-after elements in the digital asset industry. Moreover, users enjoy profitable transactions.
L2 blockchains address the limitations of L1 blockchains and have demonstrated their efficiency and versatility in the NFT and DeFi sectors.
These solutions are gaining more and more attention in the developing cryptocurrency infrastructure.
Crypto infrastructure is evolving rapidly!📈Layer 2 solutions are gaining momentum, improving scalability. 🏎️ Interoperability protocols are merging blockchains. Institutional-grade data storage solutions are expanding. Zero-knowledge proofs are increasing privacy. 💨 The Web3 stack is maturing, but…
— Cido (@cido_ai) August 22, 2024
About the Unchanging
Immutable is an L2 solution for non-fungible tokens (NFTs) on the Ethereum blockchain. It addresses ETH’s limitations such as illiquidity, slow developer experience, usability, and scalability.
Immutable technology allows users to create and distribute digital assets such as ERC-721 and ERC-20.
IMX Price Forecast
The native token is trading at $1.32 after a nearly 10% gain in the last day. A 40% increase in daily trading volume confirms the increased optimism of enthusiasts.
IMX appears poised for long-term growth, with a thriving gaming ecosystem and resurgent NFT stories supporting long-term upward trends.
In summary, layer 2 networks play an important role in the early evolution of blockchain as efficiency and scalability become critical factors to satisfy the growing cryptocurrency user base.
These developments bode well for Immutable’s position in the financial space and ensure sustainable growth in the future.
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