Top Layer 3 (L3) Coins You Must Know in 2024!

Introduction

In the ever-evolving landscape of crypto, technological innovations continually push boundaries to address key challenges and enhance user experiences. Among these advancements are Layer 3 blockchains, poised to revolutionize decentralized applications (dApps) in 2024. But what exactly are Layer 3 blockchains, and how do they contribute to the crypto ecosystem?

Understanding Layer 3 Blockchains

Layer 3 protocols represent the pinnacle of blockchain evolution, built atop Layer 2 solutions to offer unparalleled scalability and customization for application-specific dApps. Unlike their predecessors, Layer 3s aren’t confined by generic functionalities; instead, they empower developers to craft tailored solutions that meet specific requirements.

Layer 1 vs Layer 2 vs Layer 3 Blockchains

Problems Solved by Layer 3 Blockchains:

Layer 3 blockchains address critical issues encountered in the blockchain space, including:

• Scalability: Designed to surpass the limitations of previous layers, Layer 3s offer unparalleled scalability, enabling high-volume transactions and supporting complex applications seamlessly.
• Complex dApp Support: By providing advanced infrastructure, Layer 3s facilitates the development of sophisticated dApps with intricate functionalities, enhancing user experiences and usability.
• Blockchain Interoperability: Layer 3s act as bridges between disparate blockchain networks, enabling seamless data and transaction flow across platforms, fostering interoperability and collaboration.
• Customization: Tailored to developers’ unique needs, Layer 3 blockchains offer customizable solutions, allowing for the implementation of application-specific mechanisms and governance structures.

In the following sections, we’ll delve deeper into the functionalities, use cases, and notable projects driving the Layer 3 revolution in the crypto space. Join us as we explore the top Layer 3 tokens poised to make waves in 2024 and beyond.

Read More: Top Layer 2 Crypto Projects 

Top Layer 3 Coins In the Crypto Market

Xai Games

Xai constitutes a decentralized gaming ecosystem that creates and disseminates blockchain games and bolsters the foundational infrastructure. Operated without a central team or authoritative figure, the project originated from several pivotal entities, each fulfilling unique roles. As the initiative expands, it anticipates a broader array of entities offering support across diverse avenues.

In the landscape of the list of Layer 3 cryptos, Xai shines as a top contender, showcasing the potential of Layer 3 blockchain projects to revolutionize the crypto space. With a focus on being a top Layer 3 crypto, Xai exemplifies the cutting-edge developments within Layer 3 projects, offering users a glimpse into the future of blockchain technology.

XAI/USD | Source: TradingView

Xai Games is the largest project on this list of top layer 3 coins, with a market capitalization of nearly $350 million as of writing this article. Since its initial days, XAI price has been trading in a consistent upward trajectory, with a neat higher high, higher low price action pattern. March has been a relatively slow month for this layer 3 coin however, but a tthe same time it presents a potential for this altcoin to see an uptick in the near future. This is a relatively new crypto category and needs more discovery in the mass market. Currently trading above both the base Fibonacci pivot and the 50-day EMA – the targets on the upside include $1.5, $1.7, and eventually $2 in the short term. On the downside, the S1 Fibonacci level at $0.87 would serve as a support region.

Additional Read: Top Altcoins in 2024

Orbs

In the realm of Layer 3 blockchain projects, Orbs emerges as a noteworthy contender, offering a robust public blockchain infrastructure tailored to meet the demands of scalability, low fees, performance, security, and user-friendliness. Positioned as a platform primed for mass adoption, Orbs facilitates a comprehensive blockchain stack to support diverse applications. At its core, the Orbs platform embodies decentralization, transparency, and openness, catering to enterprises and large-scale consumer applications seeking practical blockchain solutions.

Central to the Orbs ecosystem is its native token, ORBS, which plays a pivotal role in commission calculation for executed applications and incentivizes validators, thereby upholding network integrity. The ORBS token underpins the platform’s operational dynamics as the exclusive payment medium within the Orbs ecosystem.

Founded in 2017, Orbs boasts a seasoned team comprising skilled engineers, entrepreneurs, and researchers. Leveraging blockchain virtualization and randomized proof-of-stake (RPoS), Orbs pioneers innovative solutions to address the scalability conundrum, setting a precedent for Layer 3 blockchain projects in 2024 and beyond.

ORBS/USD | Source: TradingView

One of the older and more matured Layer 3 coins on this list is Orbs. ORBS price has not particularly participated in the broader market crypto rally in 2024 yet – which presents a good potential for one in the near future as the crypto bull market gains more and more momentum. ORBS price is currently taking the support of the R2 Fibonacci level at around $0.45. If this support holds, then we can see a follow-on rally till $0.5, which roughly coincides with the R3 for March. If that is breached, then we can see a much stronger follow-on rally in the altcoin.

Dream Machine Token (DMT)

In the realm of Layer 3 tokens poised for prominence in 2024, let’s delve into the intricacies of Dream Machine Token (DMT). Dream Machine represents a groundbreaking venture, manifesting as a game console and arcade meticulously crafted natively on Arbitrum, exclusively tailored for NFT and token-based gaming experiences. Spearheaded by Sanko GameCorp, this innovative endeavor promises a rich tapestry of distinctive gaming adventures housed within The Dream Machine ecosystem.

So, how does Dream Machine Token (DMT) function within this immersive gaming realm? DMT is the native asset underpinning all Dream Machine games, akin to the tokens and quarters essential in traditional arcades. Fueling the gaming experience, $DMT acts as the per-play token and is the primary asset within in-game economies, facilitating transactions for items, power-ups, character enhancements, and stage unlocks. Furthermore, players reap rewards in $DMT for their gameplay achievements and betting endeavors.

Designed to exhibit scarcity, most DMT tokens are made available to the public through initial sales and airdrops. To maintain a controlled token supply, a portion of tokens utilized during gameplay are systematically burned, reducing overall circulation. Embracing a low-emission model, Dream Machine Token strategically ensures sustainability by releasing a significant percentage of tokens during genesis, with no early-stage access granted to venture capitalists or seed investors.

DMT/USD | Source: TradingView

Dream Machine Token’s DMT price has been one of the best performers on this list, making gains of over 630% in 2024 alone! However, this is a token that is traded on a very limited number of exchanges and thus tends to see very low trading volumes. DMT price has broken out of the R3 Fibonacci level and is trading above the 50-day and the 200-day EMAs, making is a positive candidate in this bull market. On the downside, it will find support around $37 to $40 range, which the upside remains open if it breaches the $60 level.

Know More: Top Meme Tokens in 2024

Potential Upcoming Layer 3 Coins!

Arbitrum Orbit

In a significant development in 2023, the Arbitrum Foundation introduced Arbitrum Orbit, positioning it as a Layer 3 blockchain architecture integrated atop the Arbitrum Nitro platform. Promising reduced transaction costs, heightened scalability, and the provision for developers to craft bespoke, self-managed specialized blockchains within the Arbitrum Nitro framework. This empowers developers to tailor blockchain solutions precisely to their unique specifications, amplifying customization and functionality.

zkSync Hyperchains

Another pioneering initiative comes from the zkSync team with the launch of zkSync Hyperchains. Positioned as potential Layer 3 entities, zkSync Hyperchains leverage Layer 2 platforms for settlement. Utilizing the zkEVM engine from the ZK Stack, these Hyperchains maintain uniformity across ZKP circuits while inheriting the robust security framework of Layer 1, irrespective of the deploying entity. One notable advantage lies in the expedited messaging capabilities among Layer 3 entities settling on the same Layer 2 infrastructure, fostering enhanced interoperability within the broader ecosystem.

Conclusion

In conclusion, as we explore the emerging trends in the crypto space, it’s evident that Layer 3 tokens are positioned to redefine the landscape in 2024 and beyond. With projects like Orbs, Dream Machine Token (DMT), Arbitrum Orbit, and zkSync Hyperchains leading the charge, we witness a convergence of innovation, scalability, and user-centric design. These Layer 3 tokens address the pressing challenges of scalability, interoperability, and customization and pave the way for a new era of decentralized applications and blockchain ecosystems.

As investors and enthusiasts navigate the dynamic crypto market, keeping an eye on the top Layer 3 tokens becomes imperative. Whether it’s leveraging the gaming potential of DMT, exploring the customizable solutions of Orbs, or embracing the enhanced scalability of Arbitrum Orbit and zkSync Hyperchains, the opportunities abound for those keen on staying at the forefront of crypto innovation.

With Layer 3 projects poised to unlock new realms of possibility and foster greater adoption, it’s clear that the journey of crypto evolution is far from over. As we embrace these emerging trends, we embark on a path toward a more decentralized, interconnected, and inclusive future driven by the transformative power of Layer 3 technologies.