%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment Lesser known ‘Layer 2’ digital tokens are rallying along with the broader %Cryptocurrency market. Layer 2 tokens are cryptos that are built on top tier ‘Layer 1’ assets such as %Bitcoin ($BTC ) and %Ethereum ($ETH ). Cryptocurrency prices are rising on expectations that central banks are done raising interest rates and that Bitcoin exchange-traded funds (ETFs) will soon be approved by U.S. regulators. Smaller digital tokens associated with Layer 2 projects have a combined market capitalization of about $14.3 billion U.S. and comprise about one-tenth of the total crypto market worldwide. Matic, the largest Layer 2 token, has seen its price increase 20% to $0.74 U.S. over the past 30 days, according to data from CoinGecko. It's used to reduce congestion on the Ethereum network. The next four largest Layer 2 cryptos, called Immutable, Mantle, Arbitrum and Optimism, have seen their prices rise between 9% and 105% over the past month. The rise in smaller cryptocurrencies comes as Bitcoin’s price has increased 125% this year to $37,500 U.S., and Ethereum’s price has grown 70% to $2,035 U.S. Layer 2 tokens are smaller and more thinly traded than bigger Layer 1 cryptos such as Bitcoin and Ethereum. This makes them more volatile and unpredictable to buy and sell. Many analysts warn that Layer 2 tokens are speculative in nature, and many have failed in recent years. However, other analysts use Layer 2 tokens to gauge the overall investor sentiment in the cryptocurrency market.