Summary of This Sector Is Massively Undervalued (Here’s Why)

00:00:00 - 00:30:00

Layer 2 solutions offer a more scalable alternative to traditional networks, and are therefore gaining in popularity. The market value of layer 2s is relatively low compared to other sectors, but this is starting to change as more businesses start using them.

• 00:00:00 Layer 2 networks offer a huge opportunity for investors in the crypto space, with many different events happening on chain and increasing transaction volume. Layer 2 networks are also more scalable than traditional networks, which is why they are gaining more popularity.
• 00:05:00 The author of the video compares the growth rates of the internet in 1998 and 2022, and observes that while the gas prices for Ethereum transactions are at a much lower level now, they are still too high for the average user. Layer 2 solutions (such as Visa's layer 2) help to alleviate network congestion and make the network more scalable.
• 00:10:00 The video displays the total L2 value market as of three months ago, and compares it to other sectors. It explains that layer 2s, relative to other sectors, are undervalued. The market is starting to recognize the potential layer 2s have for adoption and growth, as seen in their growth in transaction volume and tvl.
• 00:15:00 Polygon is an Ethereum-based dual layered blockchain network with massive potential. The network is gaining traction and is seeing strong growth, with many businesses using it. optimism (an L2 blockchain network) is also gaining traction, with over 100 dapps and 537 million tvl (total market value).
• 00:20:00 The creator of the video discusses how arbitrim and optimism differ in terms of growth potential. arbitrim is growing faster due to its easy to use ecosystem, while optimism is lagging behind.
• 00:25:00 The video discusses the advantages and disadvantages of two different types of ecosystems - optimism and arbitrium. Arbitrium is more impressive in terms of adoption and total transactions, but optimism is more hyped at the moment. Apex is a good option for traders if you want to trade on a decentralized exchange. ZK sync is a potential solution to the scalability issue, and may have a token coming soon.
• 00:30:00 The video discusses the significance of l2s (short for "l2 tokens"), and provides information on how to invest in them. It also discusses the potential for growth in this sector.