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Highlights
- Polygon sees a major spike in network growth ahead of MATIC’s rebrand to POL.
- Arbitrum DeFi TVL recovers to $2.83 billion, potentially reducing selling pressure.
- 88% of the total Optimism supply in profit as OP signals a major breakout on weakening resistance.
Last week’s crypto market recovery defied history that August was predominantly bearish. Bitcoin price gained strength to tap $65,000 from a major crash below $50,000 as investors embraced the Fed’s signal for interest rate cuts. Altcoins rebounded with Ethereum (ETH) in the lead, while increases in Polygon (MATIC), Arbitrum (ARB), and Optimism (OP) suggested that an altcoin season was shaping up.
Top Reasons To Buy And Hold Polygon, Arbitrum and Optimism
The next few weeks will be crucial for investors and may drive a wedge between those who ace the bull market and those who will drown in losses. For that reason, investors must be vigilant and cautious with their actions heading into Q4. The last quarter of the year tends to be bullish for crypto prices, giving people a chance to recover from unrealized losses. The rally that took BTC price to all-time highs in March 2024 commenced in Q4 2023 as optimism for spot ETF approvals surged.
This article will explore why investors should buy and hold Polygon, Arbitrum, and Optimism—some of the leading Ethereum layer 2 scaling projects. Polygon is the largest token among the three, boasting $4.76 billion in market cap, followed by Arbitrum with $2 billion and Optimism with $1.8 billion.
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Polygon’s Positive Network Growth and Token Rebrand
Polygon is a top layer 2 Ethereum scaling protocol. It is valued at $0.5132 on CoinGecko after growing 22.6% weekly. However, due to profit-taking, MATIC rolled back 4% in the last 24 hours.
Several factors prop MATIC price as an altcoin to buy and hold starting now for commendable gains in Q4. Key among them is the upcoming rebrand of MATIC to POL. The new token will be utilized for gas payment and staking during the initial stages but will play a crucial role in the AggLayer. According to Polygon official blog, the migration will take place on September 4.
The transition to POL is expected to make the Polygon attractive to investors, making it worth buying and holding. On-chain data from Santiment reveals a gigantic spike in newly created addresses from only 6 on August 17 to 97 on August 7, implying rising demand for the token MATIC.
2. Arbitrum Staking Growth
Arbitrum is a Layer 2 scaling solution for Ethereum, just like Polygon. It’s renowned for its high throughput and low transaction fees. The protocol boasts a unique design known as Optimistic Rollups, which ensures security and compatibility with the larger Ethereum ecosystem. Arbitrum has, since its inception, become a popular choice for developers and users seeking faster and more affordable transactions.
The native ARB token is valued at $0.5915. Following last week’s rally, ARB price pulled back from $0.6339 but maintained an 11% gain in seven days. Investors show growing interest in Arbitrum, reflected by the spike in its decentralized finance (DeFi) market’s TVL to $2.83 billion from $2.4 billion in early August, Defi Llama shows. An increase in TVL shrinks the potential selling pressure, allowing the ARB price to rally.
3. Optimism Soaring Profitability
Optimism is a Layer 2 scaling solution for Ether that accelerates transaction speed while reducing network fees. It’s treasured for its compatibility with ETH’s ecosystem, allowing developers to port their decentralized applications easily. Optimism distinguishes itself by prioritizing security and decentralization. For this reason, it is a trusted choice for developers and users alike.
Similar to MATIC and ARB, OP put up a bullish outlook at the end of last week, climbing to $1.63. The token fell to $1 in early August amid the broader market crash, but the latest swing high has seen at least 88% of the total Optimism supply is profitable, IntoTheBlock on-chain data revealed.
The IOMAP model shows that OP price sits on top of robust support at $1.33. Approximately 61,000 addresses bought 483 million OP around the area, which means they are betting on the token rising to increase profitably. This makes OP a token worth buying and holding.
Frequently Asked Questions (FAQs)
1. Why buy Polygon now?
2. Will Arbitrum become the largest Ethereum Layer 2 network?
3. Is it a good time to buy OP?
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