ARB, OP, MATIC, IMX, MNT: Ethereum L2 Tokens Surge Amid Possible Layer 2 Season

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The upward trend in Ethereum prices stems from predictions that a spot ETH ETF will appear on the market shortly after the U.S. Securities and Exchange Commission (SEC) approved 11 BTC ETFs. Funds are pouring from the ETH market into Layer 2 (L2) tokens.

Ethereum L2 Tokens Gain Strong Amid Possible Layer 2 Season

Ethereum L2, among which Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Immutable X (IMX), Mantle (MNT) and SKALE (SKL) all recorded double-digit gains. This fueled the idea that a Layer 2 season might be around the corner, with ETH ETF predictions pushing L2 to great success.

Next is #Ethereum ETF and L2 seasons.

— Endo (@ultrasoundape) January 10, 2024

Now that a BTC ETF has been approved, an ETH ETF could be the next big thing, with several players in the cryptocurrency space already envisioning the launch of an ETH ETF and an XRP ETF, including Valkyrie Funds CIO Steven McClurg. Bitcoin Magazine reported.

Companies that have applied for spot ETH ETF approval include VanEck, Ark 21Shares, Hashdex, Grayscale and Invesco Galaxy.

RB/USDT, OP/USDT, MATIC/USDT, IMX/USDT, MNT/USDT and SKL/USDT 1-day charts. Source: TradingView

One of the key factors in L2’s strength is its dominance in total value locked (TVL), with ARB leading the industry. According to L2Beat data, Arbitrum has a market share of 49.81% in L2, followed by Optimism at 28.34%.