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Layer 2 cryptos Polygon and Optimism flourish as Ethereum ecosystem heats up

By:
on Dec 28, 2023
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  • Polygon and Optimism on a recovery mode alongside Ethereum, their base platform.
  • L2 coins adopt an optimistic stance as cash flowing into the Ether blockchain.
  • ETH sees increased attention, and analysts expect it to outperform in 2024.

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Layer 2 digital coins Polygon (MATIC) and Optimism (OP) dominate the trends as their base platform, Ethereum (ETH), witnesses heightened consideration from market participants as they await it to outshine the bellwether Bitcoin,

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OP and MATIC in the limelight as attention switches to Ether

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Polygon and Optimism are among the layer 2 blockchains benefiting as crypto enthusiasts shift attention from to the second-largest crypto by value. MATIC dropped a slight 1% in the past day and jumped substantially by over 31% on its weekly chart to trade at $1.02 during this publication.

Meanwhile, OP led the gainers the previous day, surging nearly 18%. Optimism investors saw their portfolios increase by over 70% in the past seven days.

OP 30D Chart on Coinmarketcap

Moreover, the robust trading volumes indicate amplified interest among MATIC and OP investors. MACD’s green histograms show a buyer edge in both altcoins. Also, the RSI highlights a massive price strength, further cementing the bullish narrative.

Ethereum future outlook

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Ether trades on an upside stance, gaining more than 7.30% and 8.91% over the past day and week, respectively. Analysts trust the leading altcoin will continue its uptrends in Q1 2024.

Michael van de Poppe sees Ether exploding to outperform the crypto markets in the upcoming year, citing Ethereum’s migration to PoS and the potential ETH ETF as bullish catalysts. 

Further, layer2 cryptocurrency will keep shining as Ethereum recovers. The upcoming EIP-4844 will enhance scalability and reduce transaction fees for L2s.

It remains crucial to witness how Ethereum and L2 crypto projects will perform in 2024.

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