Layer-2 Watchlist Arbitrum Tokens With 500% Growth Potential in 2025

• Monero enables fully anonymous transactions using cryptography that conceals senders, recipients, and amounts on-chain.
• XRP Ledger processes transactions in under 5 seconds with built-in DEX functionality and token support.
• Arbitrum reduces Ethereum costs using rollups and decentralizes governance through its ARB token DAO.

A number of prominent blockchain projects continue to drive digital finance and infrastructure in 2024. Among such technologies, Monero, XRP Ledger, Arbitrum, Kaspa, and Toncoin are those that have unique capabilities and promote privacy, scalability, efficiency, and decentralization. Both play an important role in solving the limitations of the existing crypto world while facilitating many use cases of decentralized finance, governance, and world-wide transactions.

Monero enhances privacy when it comes to blockchain transactions

Source : CoinMarketcap

Monero (XMR) started in 2014 and it intends some private and untraceable digital money transactions. Unlike Bitcoin , which has its transactions viewed publicly on-chain, Monero uses sophisticated cryptographic techniques to hide the identities of the sender and the receiver. Its main properties involve stealth addresses, RingCT, (Ring Confidential Transactions), which guarantee that amounts of transfers and their origins are confidential.

The project prioritizes user privacy and security across all levels of technical expertise. Monero does not rely on optional privacy settings. Instead, it enforces privacy by default, giving users uniform protection across the network. Its continuous development aims to improve protocol efficiency while maintaining privacy standards.

XRP Ledger(XRPL): provides fast and cheap transactions

Source : CoinMarketcap

The XRP Ledger, that went live, is a decentralised, permissionless blockchain that has been designed to provide high-speed and low-cost transactions. Being based on the average cost of $0.2 per transaction and the order execution period of 3–5 seconds, the XRPL can become the energy-efficient alternative to the traditional financial systems.

It supports up to 1,500 transactions per second and has closed over 70 million ledgers without incident. XRPL introduced one of the earliest decentralized exchanges (DEXs) and offers native support for custom token issuance. These features position XRPL as a scalable and sustainable platform for asset transfer and tokenization use cases.

Arbitrum(ARB) Enhances Ethereum Scalability

Source : CoinMarketcap

Arbitrum is a layer-2 scaling solution for Ethereum with transaction minimization and an elimination of the network’s congestion. It does employ optimistic rollups. It maintains compatibility with Ethereum smart contracts while moving computation and data off-chain. This approach enables higher throughput and faster processing at lower fees.

Governance for Arbitrum is handled by a decentralized autonomous organization (DAO), with ARB as the native governance token. The network’s 2023 roadmap included developments such as Orbit, a layer-3 framework; support for multiple programming languages through Stylus; and expansion of validator diversity. These updates enhance developer flexibility and promote greater decentralization.

Kaspa(KAS): Implements Parallel Block Processing

Source: CoinMarketCap

Kaspa (KAS) introduces a proof-of-work blockchain based on the GHOSTDAG protocol, enabling simultaneous block creation without orphaning. This approach forms a blockDAG structure, allowing for high-frequency block generation and reduced confirmation delays.

The protocol is currently capable of producing one block per second and aims to scale up to 10 or even 100 blocks per second. Kaspa’s roadmap includes future support for lightweight clients through SPV proofs, block data pruning to reduce storage needs, and potential layer-2 scalability options. Its design seeks to improve throughput while retaining the security of traditional proof-of-work systems.

Toncoin(TON): Powers Scalable Blockchain for Web3

Source : CoinMarketcap

Toncoin (TON) serves as the native asset of The Open Network, a decentralized layer-1 blockchain originally developed by the Telegram team. After regulatory intervention in 2020, development continued through an independent community, now led by the TON Foundation.

The network utilizes a proof-of-stake model of consensus that is energy friendly and scalable. Toncoin has a whole range of services in a blockchain, which includes payments, staking, and governance. Blockchain Architecture can manage high throughput, and has smart contract functionality, for decentralised applications. TON still draws the incorporation that spans Web3 platforms with the help of open-source code and community governance.