What is Layer 2 in the Context of Cryptocurrency?

What is layer 2 in the context of cryptocurrency?

It is a secondary blockchain that facilitates smart contracts (link). Layer 2 is a second layer of a blockchain, an assistant blockchain, or a sidechain (https://www.ledger.com/academy/topics/blockchain/what-are-ethereum-layer-2-blockchains-and-how-do-they-work). A layer 2 for a cryptocurrency can support more features and more transactions per second (thus more users). A layer 2 can increase the speed which can be attractive to the adoption of a given cryptocurrency. As of 3/3/24, Bitcoin's layer 2s are one of the reasons Bitcoin's price has increased dramatically (https://cointelegraph.com/news/btc-layer-2s-among-catalysts-bull-cycle-bitcoin-og-says).

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