Top 5 Ethereum Layer 2 Tokens to Watch After Pectra Upgrade

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The Pectra upgrade can have a significant impact on the Ethereum Layer-2 ecosystem by introducing expanded blob space, smart accounts, and validator improvements. Arbitrum (ARB), Starknet (STRK), Mantle (MNT), Aevo (AEVO), and Fuel (FUEL) are the five key tokens that can benefit from reduced data costs, increased scalability, and enhanced functionality.

Although these five tokens have recently experienced price adjustments, the on-chain upgrade could provide tailwinds in the coming weeks. These Layer-2 solutions are positioned to benefit from Ethereum's evolving infrastructure and have upside potential when momentum returns.

Arbitrum (ARB)

With the Ethereum Pectra upgrade providing expanded blob space and more efficient data availability, Arbitrum can reduce L1 settlement fees and scale more efficiently.

Simultaneously, EIP-7702 introduces smart account features that enable gasless transactions, batching, and simplified onboarding, providing an enhanced experience for developers and end-users on Arbitrum.

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Additionally, the smart account feature of EIP-7702 aligns with Fuel's goals of improving UX and developer tools. This enables more advanced wallet interactions, gasless flows, and simplified onboarding for users deploying dApps on Fuel's stack.

FUEL Price Analysis
FUEL Price Analysis. Source: TradingView.

FUEL's moving averages continue to show strength, with short-term averages above long-term averages. This indicates fundamental strength. However, it has been struggling to break through the $0.012 resistance in recent days.

If that level is retested and broken, FUEL could rise to $0.0129 and $0.014. With a strong upward trend, it could rise again to $0.0163.

In a downward trend, if momentum weakens and FUEL falls below the $0.010 support line, the next targets are $0.0084 and $0.0077.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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