NEW DELHI (CoinChapter.com) — Optimism (OP) and Arbitrum (ARB) are two L2 blockchains that are on the watchlist of most crypto traders in 2024. The partnerships and upgrades of the Ethereum scaling projects could induce investors to buy Optimism and/or Arbitrum tokens to diversify their holdings.
Arbitrum (ARB) and Optimism (OP) are prominent Ethereum layer-2 scaling solutions. Both projects stand to benefit from the Ethereum EIP-4844 upgrade, which aims to lower the gas fees on Ethereum layer-2 scaling networks drastically.
Furthermore, the upcoming update is a key part of Ethereum’s roll-up-centric roadmap. As a result, Arbitrum and Optimism projects could see increased investor interest in the coming months. Wider adoption would likely translate into price gains for both ARB and OP tokens.
Why Traders Might Buy Optimism Tokens…
Optimism has some key upgrades and partnerships that could act as bullish cues for its OP token in 2024. First on the list is the platform’s upcoming “Canyon” hardfork, which is set to go live on Jan. 11, “barring a critical security issue.“
The Canyon upgrade will introduce several improvements specific to the OP Stack while maintaining EVM compatibility by activating the Shapella network upgrade.
Furthermore, the upgrade will improve network efficiency, add a new field to the deposit transaction receipt encoding, and set the create2Deployer bytecode on all Optimism networks.
Optimism has partnered with Coinbase’s Layer 2 solution BASE to include the L2 blockchain in the Optimism Collective initiative. The alliance introduced improvements like shared updates and a fee contribution understanding between the two projects.
The Optimism Collective is a “band of companies, communities, and citizens working together to reward public goods and build a sustainable future for Ethereum.”
Moreover, the Collective plans to introduce a decentralized Security Council to oversee upgrades for Base, OP Mainnet, and other Optimism ecosystem blockchains.
The collaboration with Coinbase is a major endorsement of Optimism’s technological robustness. Furthermore, the proposed new economic model could positively impact the economic stability and governance efficiency of Optimism.
As such, traders could choose to buy Optimism tokens in 2024, given the potential for increased network performance, growth, and adoption.
… Or Buy Arbitrum Tokens in 2024
Arbitrum is another Ethereum scaling solution that could see bullish times in 2024. There are speculations of Arbitrum collaborating with Cardano (ADA) and Mina Protocol (MINA) in 2024. Further growth in Arbitrum’s adoption would likely see the blockchain network forging new partnerships
Sebastien Guillemot, co-founder of Paima Studios, voiced Optimism about a possible alliance between the three blockchain projects.
If it happens, a collaboration could leverage zk proofs to enhance scalability and address data storage limitations on layer-1 blockchains, which could enhance blockchain adoption across verticals. A partnership could see traders lining up to buy Arbitrum tokens in droves.
Moreover, the Arbitrum DAO voted to distribute 21.52 million ARB tokens to 26 ecosystem projects in December. Despite qualifying for the Short-Term Incentive Program funding, these projects missed out on grants in October 2023.
The funding would incentivize adoption and support emerging developers within the Arbitrum ecosystem. New Arbitrum-based projects would add to demand and use cases for the ARB token, attracting traders to buy Arbitrum tokens in 2023
While both the L2 projects have significant upgrades lined up, the crypto market is fickle and volatile. As such, investors should research before buying Arbitrum and/or Optimism tokens in 2024.
