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DeFi

<ul>
 <li><strong>Over 10,000 cryptocurrencies exist in 2024, including Layer-1, Layer-2, stablecoins, and DeFi coins with varied uses and attributes.</strong></li>  
 <li><strong>L2 blockchains improve L1 abilities by providing off-chain transaction scaling and quicker execution.</strong></li>  
 <li><strong>Stablecoins offer price stability, while DeFi coins enable decentralized financial services and governance in Web3 ecosystems.</strong></li> 
</ul>  
<p>The cryptocurrencies segment has become defined in 2024 with over 10000 cryptocurrencies currently being circulated. This article, looks at the various categories, such as Layer-1, Layer-2, stable tokens, and DeFi tokens, with an emphasis on key features and uses in the blockchain industry.</p>  
<h2 class="wp-block-heading" id="h-layer-1-blockchains-powering-major-cryptocurrencies">Layer-1: Blockchains Powering Major Cryptocurrencies</h2>  
<p><a href="https://cryptonewsland.com/top-gainers-in-crypto-market-wormhole-nervos-and-bittensor-drive-blockchain-growth-in-2024/" target="_blank" rel="noopener noreferrer nofollow">A Layer-1 blockchain</a> is the base layer of a blockchain. It is the main independent chain where transactions are carried out and verified. It also provides the necessary platform for decentralized apps and smart contracts.&nbsp;</p>  
<p>The maintenance of a blockchain is the task of its network that checks transactions and creates new blocks. Every node of the blockchain has a technique to confirm the validity of a transaction to ensure it is secure, clear, and can’t be altered.</p>  
<p>The most famous coins are Layer-1 cryptocurrency types. Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) are some examples of this category.</p>  
<h2 class="wp-block-heading" id="h-layer-2-solution-for-faster-crypto-transactions">Layer-2: Solution for Faster Crypto Transactions</h2>  
<p>Since Layer-2 network blockchains operate independently of Layer-1 blockchains for transaction execution, they are also considered off-chain scaling options. This implies that the Layer-2 network need not be a distinct blockchain; rather, it could be a centralized network where users decide to trust one another rather than depending on code to uphold trust, or it could just be a payment channel for sending money between two or more users via smart contacts.</p>  
<p>Polygon (MATIC), Stacks (STX), Mantle (MNT), and Immutable (IMX) are examples of layer-2 cryptocurrency types with the highest market cap value.</p>  
<h2 class="wp-block-heading" id="h-stablecoins-solution-to-crypto-changes">Stablecoins: Solution to Crypto Changes</h2>  
<p>The volatility of the most known cryptocurrencies, such as Bitcoin (BTC), has caused cryptocurrency investments less appropriate for everyday transactions. <a href="https://cryptonewsland.com/ton-foundation-and-curve-finance-launch-new-stable-swap-project/" target="_blank" rel="noopener noreferrer nofollow">Stablecoins seek to </a>offer an alternative.</p>  
<p>Stablecoins keep a reserve of a fiat currency, like the US dollar, as collateral to guarantee the worth of the stablecoin. USDT, USDC, DAI, and FDUSD are the top 4 examples of stablecoins cryptocurrency types with the highest market value.</p>  
<h2 class="wp-block-heading" id="h-defi-key-cryptocurrencies-and-uses-in-2024">DeFi: Key Cryptocurrencies and Uses in 2024</h2>  
<p>Any digital asset utilized in DeFi apps, whether coins or tokens, is considered a DeFi cryptocurrency in the broadest sense.<a href="https://defi.tech/" target="_blank" rel="noopener noreferrer nofollow"> DeFi coins are </a>regularly generated by DeFi dApp developers to supplement their blockchains with unique features such as incentive systems or voting rights.&nbsp;</p>  
<p>DeFi coins are cryptocurrencies that serve a specific purpose inside their respective Web3 ecosystems. Hence, they are often a subset of a wider category known as utility tokens. DeFi tokens have applications in their crypto ecosystems that go beyond price speculation, although they may trade at a changing price on some cryptocurrency exchanges.</p>  
<p>Avalanche (AVAX), Chainlink (LINK), Internet Computer (ICP), and Dai (DAI) are the top 4 examples of types of crypto ranked by market cap value.</p> 
<p>The post <a href="https://cryptonewsland.com/know-your-types-of-crypto-in-2024-layer-1-layer-2-stablecoins-and-defi-token/" rel="noopener noreferrer nofollow">Know Your Types of Crypto in 2024: Layer-1, Layer-2, Stablecoins, and DeFi Token</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Know Your Types of Crypto in 2024: Layer-1, Layer-2, Stablecoins, and DeFi Token

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