Investors seeking the best returns in the 2024 bull market cannot overlook the layer 2 projects within the Bitcoin ecosystem. These networks not only enhance the value and utility of the Bitcoin blockchain but also have the potential to mirror BTC's performance over the years.

Bitcoin has experienced a mini-bull run since January, reaching a new all-time high of $73,837, but sentiment suggests that the main bull run is yet to come. Layer 2 projects will be crucial in bringing volume to the Bitcoin blockchain and thus cannot be left out of portfolios. These layer 2 cryptos have the potential to positively impact your portfolio in 2024 and 2025.

SatoshiVM (SAVM)

SatoshiVM is a Bitcoin ZK Rollup layer 2 solution that uses native BTC as gas. SAVM is the native token of the layer 2 network and is used for governance. The project is fully compatible with the Ethereum Virtual Machine (EVM) while using Bitcoin as the settlement layer. SatoshiVM is building a decentralized exchange that includes a DeFi yield protocol for staking and BTC yield. Despite being on a downward trend since its alpha mainnet launch in March 2024, trading volume is rising, indicating investors are accumulating and waiting for a breakout. SatoshiVM has a market cap of $21 million, making it a gem in rough awaiting Bitcoin DeFi summer to take shape.

Elastos (ELA)

Elastos is an old player in the crypto arena and markets itself as the forefront of a Smarter Web. Its technology enables a smarter, more secure, and private digital ecosystem, powered by Bitcoin. The technology stack that Elastos has built enables developers to build layer 2 networks on it. Elastos is also developing BeL2, a Bitcoin Elastors layer 2 protocol that will allow EVM smart contracts to run directly on top of Bitcoin. ELA price is currently at $2.62, with a $54 million market cap. The price of Elastos at an all-time high (over 6 years ago) was $89.14, which shows the great hidden potential of the project. Now that Bitcoin DeFi is closer than ever, the potential of Elastos hitting a billion-dollar market cap project is high.

Merlin Chain (MERL)

Merlin Chain is a native Bitcoin Layer 2 network powered by Bitmap Tech, and building upon the native assets, protocols, and products on Bitcoin Layer 1. The L2 network has made strides in bringing DeFI to Bitcoin by building a functional bridge. Through the Merlin Chain, over 190,000 BTC (over 12.9 billion USD) has been bridged to other networks like Solana, BNB chain, Ethereum, and Manta. MERL price is sitting around $0.5, a 7% increase in the past 7 days. Investors who get in now may be receiving a 65% discount on the price of MERL as it may surge during Bitcoin’s rally.

Stacks (STX)

Perhaps one of the largest Layer 2 cryptos associated with Bitcoin, Stacks is a Bitcoin Layer 2 network enabling smart contracts and apps with Bitcoin as a secure base layer. Stacks price received a boost recently after Grayscale Investment introduced the Grayscale Stacks Trust. This financial instrument focuses solely on investing in STX. The Stacks market soared along with its price, rising to $2.88 billion. The STX daily trading volume also surged by 215%, signaling a recent rise in market activity. Stacks registered its all-time high price two months ago, around $3.86. The journey back to that price may be simple and may not have much ROI. However, as the only Bitcoin Layer 2 crypto trusted by Graysclae, STX price may continue to rise for the foreseeable future and the gains may be exponential if Bitcoin revisits $72,000.

Optimism (OP)

Optimism is a well-known Ethereum Layer 2 network. However, due to continuous building, the Optimism OP stack has caught the eye of Build on Bitcoin (BOB), the first hybrid Layer 2 network, connecting Bitcoin security with EVM liquidity. While the connection may be indirect, the rise of Bitcoin, especially after the BOB network has launched, may affect the Optimism network’s token, OP. OP price is performing well, even though it’s been down 4.5% in the past 7 days. In March, Optimism announced an $89 million private sale of 19.5 million OP tokens. The announcement received mixed feelings among the Ethereum community and negatively impacted the price. Nevertheless, Optimism is a fundamentally sound project and they continue to build.

Conclusion

Investing in layer 2 cryptos before Bitcoin begins the second phase of this cycle’s bull run may be a good way to boost your portfolio exponentially. However, ensure you do your due diligence before you decide to invest in any layer 2 cryptos.