• Ethereum Layer 2 competition intensifies with rising accumulation of tokens and upcoming airdrops.
  • Addresses holding between 1,000 to 100,000 tokens of Layer 2 projects like MATIC and METIS are consistently accumulating.
  • As Bitcoin and Ethereum price rallies grind to a halt after Fed’s 25 basis point hike, it fuels a bullish sentiment among altcoin holders. 

The narrative of Ethereum Layer 2 solution token’s is heating up with the shift in focus to altcoins. Bitcoin and Ethereum price rallies grinded to a halt after the recent rate hike announcement by The Fed. Typically, this shifts focus to altcoins and token holders can benefit from the alt season and upcoming L2 airdrops. 

Also read: Arbitrum's ARB token goes live, here is what to expect

MATIC and METIS accumulation on the rise: What this means for price?

Polygon Network’s native token MATIC and MetisDAO’s METIS have witnessed accumulation since March 12. This coincides with the time when market participants were hit by the global banking crisis. Typically, accumulation by token holders fuels a bullish thesis for the asset. 

Based on data from Santiment, METIS is being accumulated by holders in different segments. METIS holders between 1-10, 10-100, 100-1,000 and 1,000 to 10,000 coins have been consistently accumulating the Layer 2 token, as seen in the chart below.

METIS accumulation by holders

METIS accumulation by holders in different segments

Similar pattern is noted in Polygon’s native token MATIC. Token holders have been responding to the global financial crisis and the heating narrative of Ethereum L2s, scooping up MATIC since March 12. 

MATIC accumulation by holders

MATIC accumulation by holders

Among other Ethereum Layer 2 tokens, MATIC and METIS have relatively high relevance and utility. The accumulation of these tokens is bullish for holders and is expected to influence price growth in the short-term. 

Competition between Layer 2 solutions has intensified with new airdrop announcements and alt season narrative. This offers another benefit to users as protocols compete to offer lowest gas fees and fastest transaction processing. 

Upcoming token airdrops

Holding or trading L2 token is beneficial for traders, at the same time the prospect for earning free money comes from airdrop farming. Farming benefits protocols as users are attracted to liquidity of the platform and the strategy benefits users who collect airdrop tokens and sell on DEX or CEX. 

Here is a list of long awaited airdrops after Arbitrum’s ARB goes live today. 

  • zkSync Era

This is a zero knowledge Layer 2 rollup on the Ethereum blockchain. It enables access to the Ethereum chain through MetaMask, boosting its utility for traders. The project recently opened for protocols to deploy their code on the zkSync mainnet. Users of the L2 can maximize their chances of gaining their airdrop by increasing their on-chain footprint on zkSync Era mainnet. 

  • Starknet 

Another zk-based Ethereum rollup Starknet confirmed its STARK token. The Starknet mainnet was launched in November 2022 and total deposits climbed to $2.49 million after the Arbitrum airdrop announcement. Users are rushing to maximize their usage of Starknet’s mainnet for opportunity to participate in the STARK airdrop. 

  • Scroll

Scroll competes with zkSync and Polygon’s zkEVM. The rollup is completely compatible with the Ethereum Virtual Machine and replicates its design to make it easier for developers deploying their project on Scroll. The team launched on the Ethereum Goerli testnet and allowed public testing. Over 100,000 users accessed the testnet version, awaiting mainnet launch, which is scheduled for the end of the year. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin rebounds as South Korea martial law proves short-lived

Bitcoin rebounds as South Korea martial law proves short-lived

Bitcoin recovers slightly, trading above $96,000 on Wednesday, after its recent dip on Tuesday due to the political strife in South Korea. With the crisis seeming to be mostly over, BTC recovered more as the reversal of the martial law restored confidence in crypto markets. 

More Bitcoin News
Curve DAO price surges above $1, highest level since April 2023

Curve DAO price surges above $1, highest level since April 2023

Curve DAO extends gains by more than 30% on Wednesday, rallying 70% so far this week and reaching levels not seen since April 2023. On Tuesday, the announcement of CRV’s scrvUSD stablecoin launch on the Spectra ecosystem fueled the ongoing rally.

More Cryptocurrencies News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptomarket stabilizes after South Korea reverses martial law

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptomarket stabilizes after South Korea reverses martial law

Bitcoin hovers near $95,700 on Wednesday, signaling potential weakness as technical indicators suggest a decline, while Ethereum and Ripple stabilize near key levels, hinting at a possible rally following South Korea's reversal of martial law.

More Cryptocurrencies News
Ripple's XRP sees over $4 billion in profit-taking following surge in whale activity

Ripple's XRP sees over $4 billion in profit-taking following surge in whale activity

Ripple's XRP is down 5% on Tuesday after news of South Korea declaring martial law sparked a surge in selling activity and significant profit-taking among investors. However, whales have stepped up buying pressure as the remittance-based token looks to stage a recovery.

More Ripple News
Bitcoin: A healthy correction

Bitcoin: A healthy correction

Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP