Crypto Price Prediction: So far in 2024, Bitcoin has been the main focus of crypto investors likely attributed to the first-time launch of Spot BTC ETF. The US SEC’s green light for 11 new ETFs in January sparked a substantial influx of capital from the traditional market, significantly fueling the surge that propelled Bitcoin to a new all-time high of $72,600.

However, analysts believe the market participant’s focus may shift to the second largest cryptocurrency Ethereum due to the upcoming launch of the Decun upgrade and potential approval of ETH ETF this year. 

Proto-dank sharding, introduced in the Ethereum Dencun upgrade, is designed to enhance the network’s scalability and efficiency by improving how data is stored and accessed. It represents a precursor to full sharding technology, aiming to significantly reduce the costs associated with Layer 2 rollups, which are critical for Ethereum’s scalability.

This development will benefit Layer 2 projects by driving greater adoption and offering new opportunities for integration and innovation.

Also Read: Michael Saylor Says Bitcoin Will “Eat” Gold, Emerging as Top Asset, Price Surges Over $72k

1)Arbitrum(ARB)  

Arbitrum(ARB)| Tradingview

Arbitrum is a leading Layer 2 scaling solution for Ethereum, aimed at improving the scalability and efficiency of Ethereum transactions. By employing Optimistic Rollup technology, Arbitrum allows for the execution of smart contracts and transactions at a lower cost and higher speed, without sacrificing Ethereum’s security

Insights provided by IntoTheBlock indicate a stark decrease in transaction costs for decentralized exchange (DEX) swaps. Post-upgrade, the gas fee for utilizing Arbitrum is expected to drop from $2.02 to $0.4.

As per recent chart analysis, the ARB price is witnessing a mid-term sideways trend under the influence of a triangle pattern. A recent reversal from the pattern’s resistance trendline plunged the altcoin from $2.27 to $2 registering a 12.2% loss within a week,

In the last 24 hours, the Arbitrum market cap dropped to $2.5 Billion while the trading surged 10.8% to hit $763 million. A potential breakout from the triangle pattern will set the ARB price to chase the $2.42 and $3.2 price targets.

Also Read: Robert Kiyosaki Advocates Bitcoin (BTC) As US Debt Crosses $34T

2)Optimism (OP)

Optimism (OP)| Tradingview

Optimism operates as a Layer 2 scaling solution for Ethereum, designed to enhance transaction throughput and reduce gas fees while maintaining security and Ethereum’s decentralization principles.

Following the Decun upgrade scheduled for March 13, Optimism will see a gas fee reduction from $1.42 to $0.28. OP, the native cryptocurrency of the network, has been witnessing a steady recovery utilizing an ascending trendline in the daily chart. 

An active recovery trend has uplifted the Optimism price from $1.16 to $4.3 registering 275% growth within the five months, while the market cap surged to $4.39 Billion.

The OP price facing renewed supply pressure at $4.85 may trigger a fresh correction and plunge altcoin to potential support of $4.2 and the rising support trendline.

Also Read: Spot Ethereum ETF: What Are The Chances of Approval In May?

3)StarkNet(STRK)

StarkNet| Tradingview

StarkNet is a decentralized, permissionless, Layer 2 scaling solution for Ethereum, utilizing STARK-proof technology to achieve high scalability and privacy. Developed by StarkWare, it enables the processing of transactions off-chain while leveraging the security and composability of the Ethereum mainnet. 

Following the upgrade, the projected Dex Swap Cost for Starknet will drop from $1.16 to $0.12. Amid the Bitcoin price rally above $70000, the STRK price rebounded from $1.744 last week and hit $2.67 to register 53% growth.

The market cap of Starknet witnessed a 1.41% drop reaching $1.75 Billion, while the trading volume plunged 5.47% to hit $505 Million. A look at the traditional pivot levels indicates the STRK price may face overhead supply at $2.75 and $3.08, while the $2.248 and $1.92 can provide suitable support.

Also Read: Blackrock Brings Ethereum ETF Enthusiast on Board to Focus on Crypto Offerings

Takeaway

The upcoming Decun upgrade on the Ethereum network is set to bolster scalability, fortify security, and ramp up overall network efficiency. A more robust and efficient Ethereum network could also bolster the overall ecosystem, potentially benefiting Layer 2 projects by driving greater adoption and attracting natural growth in these assets.

The post Crypto Price Prediction: Top Layer 2 Tokens to Watch Ahead of Ethereum Dencun Upgrade appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am