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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,
Attention shifts to #Ether as traders anticipate its outperformance against #Bitcoin. 📈 With money flowing into $ETH futures faster than $BTC and a positive spread in CME futures, the stage is set for Ethereum's native token to make its mov…
— CryptoNewsAI (@whaleblast) December 6, 2023
OP and MATIC in the limelight as attention switches to Ether
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.
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
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.
ETH L2s will capture the majority of EVM-compatible TVL and volume post-EIP-4844
— Astella Finance (@AstellaFinance) December 12, 2023
Ethereum will implement EIP-4844 (proto-danksharding), which will reduce transaction fees and improve scalability for layer 2 chains such as Polygon, Arbitrum, Optimism, and others. Within 1 year of… pic.twitter.com/Ag1TWuyAZZ
It remains crucial to witness how Ethereum and L2 crypto projects will perform in 2024.
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