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    ARB, OP, MATIC, IMX, MNT: Ethereum L2 tokens on a tear as SEC approves all spot Bitcoin ETFs

    FXStreet
    Updated January 11, 2024 03:56
    Mitrade



    ●Ethereum Layers 2 tokens are the top performers amid the climaxing spot BTC ETF euphoria.


    ●Arbitrum and Optimism are leading the sector, while Polygon, Immutable X, Mantle and SKALE are recording double-digit gains.


    ●The speculation that a spot ETH ETF could come after Bitcoin’s has initiated an Ether Season, with Ethereum price up 9%.



    Ethereum (ETH) price is trading with a bullish bias, coming on the back of anticipation that an ETH spot exchange-traded fund (ETF) will come to the market shortly after the US Securities and Exchange Commission (SEC) has approved the launch of the BTC ETF. The overflows from the ETH market have spilled to the blockchain’s Layer 2 (L2) tokens.



    Ethereum L2s pump amid possible Ether season


    Ethereum L2s, among them, Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Immutable X (IMX), Mantle (MNT) and SKALE (SKL) are recording double-digit gains. This has inspired thoughts of a possible Ethereum season setting in, instigated by a push for ETH ETF with L2s going on a tear.


    Now that BTC ETF has been approved, ETH ETF could be the next mania, with several participants in the crypto sector, including Valkyrie Fund CIO Steven McClurg, already envisioning an ETH ETF launch.


    Among the firms that have already applied for a spot ETH ETF approval include VanEck, Ark 21Shares, Hashdex, Grayscale, and Invesco Galaxy.


    ARB/USDT 1-day chart, OP/USDT 1-day chart, MATIC/USDT 1-day chart, 

    IMX/USDT 1-day chart, MNT/USDT 1-day chart, SKL/USDT 1-day chart


    Among the key factors contributing to the strength seen among the L2s is their dominance in terms of total value locked (TVL), with ARB topping the sector. Based on data from decentralized finance L2Beat, Arbitrum boasts a market share of 49.28% among L2s, followed by Optimism with 28.77%.


    Layer- 2 TVL


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