Investment idea: Betting on the growth of tokens of Layer 2 projects
A cryptocurrency market analyst suggested an idea for an investment portfolio of six tokens
Cryptocurrency market analysts suggested assembling a portfolio of six tokens of promising projects to scale Ethereum
Projects that solve the problems of scaling blockchain networks and Ethereum in particular are actively developing and attracting funding, which indicates a high interest of investors in these solutions and expectations of growth of the sector's capitalization.
Ethereum's transition to the Proof-of-Stake (PoS) algorithm in the network is proceeding smoothly: the problems with coin inflation and now with the withdrawal of tokens from stacking with the Shapella update have been solved. But the issues of scaling the network, i.e. making transactions in it faster and cheaper, still need to be solved.
According to the team's plans, that will take two years, and during that time, Layer-2 category projects (Layer 2 blockchains) offering ready-made extensions to scale Ethereum could cover the growing demand for the network.
Optimism on the Proving Ground. What you need to know about L2 solutions for Ethereum
With the way Ethereum is actively evolving, demand for it will only grow in the near future, not only from within the industry but also from outside interested parties who want to implement blockchain solutions with high security, speed, and transaction economics. Obviously, Layer-2 solutions will also be in high demand in the coming months.
The gist of the idea
Buy a portfolio of tokens at current market prices in the following ratio:
Polygon (MATIC) - 25%
Synthetix (SNX) - 20%
Optimism (OP) - 15%
Loopring (LRC) - 15%
Celer Network (CELR) - 15%
Immutable (IMX) - 10%
The portfolio has a good reason to hold until the end of the year, as the main market movements may start in Q3-4.
The main risk for this token portfolio will be a drop in market capitalization due to negative fundamental events - both external (the influence of Intermarket relations and macroeconomics) and internal (strengthening of regulatory pressure and problems of projects in which tokens are in the portfolio).
It should also be taken into account that the period May-July is historically a weak period for price growth on digital assets, so the main movements on tokens from the portfolio may start from the second half of the year.