Definition
Layer 2 refers to scaling solutions built on top of Layer 1 blockchains to increase transaction speed and reduce costs.
Why It Matters
Understanding Layer 2 helps you read crypto market data more accurately and make better-informed decisions when comparing coins, projects, and on-chain activity.
Where You'll See It
Layer 2 appears throughout cryptocurrency analytics on Crypto Market Watch — including coin profiles, rankings, and other glossary entries. Continue with related glossary terms or read the longer-form learn articles for deeper context.