Crypto analyst recommends this Ethereum Layer 2 in the crypto crash
Cryptocurrencies have fallen significantly in the last 24 hours. Some altcoins slipped by around 30 percent, while Bitcoin remained comparatively stable at -5 percent. Nevertheless, around a week before the Bitcoin halving, we experienced a rapid crypto crash that resulted in massive liquidations. While panic sometimes appears in the broader market, other traders are analyzing the opportunities. Crypto analyst Michael van de Poppe sees an attractive setup for an Ethereum L2.
We are talking about Optimism (OP). So could OP be worth a closer look after a 20 percent share price drop in the last 24 hours?
Buy the Dip? Crypto analyst Bullish on Optimism (OP)
The Crypto analyst sees Optimism (OP) as an attractive investment opportunity, especially in the context of current market fluctuations. After all, OP has fallen by 60 percent compared to Bitcoin since the launch of the Bitcoin ETF. This decline reflects an over-concentration of the market on Bitcoin, while other promising crypto assets like OP appear to be undervalued. The Crypto analyst interprets this development as an exciting buy-the-dip opportunity. A broad market recovery and an imminent capital rotation towards altcoins are likely as soon as Bitcoin manages to stabilize.
The trading pairs with Bitcoin are particularly exciting in the altcoin analysis in April 2024 – because the valuation of many altcoins still appears to be cheap, which in turn indicates potential for catching up. To date, the crypto bull market has been primarily driven by Bitcoin.
Ethereum-L2 more competitive than ever thanks to Dencun
The Dencun upgrade for Ethereum was recently successfully implemented and marks a crucial step forward for the Layer 1 blockchain. This update has brought about a significant reduction in transaction costs on Layer 2 networks, giving Ethereum a stronger position to compete with fast and low-cost Layer 1 networks such as Solana
With the introduction of proto-thanksharding, a key element of Ethereum Improvement Proposal (EIP) 4844, Ethereum has pushed forward a long-awaited step. This concept allows large amounts of data to be stored outside of the mainnet, thereby significantly reducing the storage requirements of Ethereum nodes. This technological innovation has resulted in a drastic reduction in fees and is particularly helpful for layer 2 rollup chains, which now offer an even more efficient and scalable solution for transactions.
Immediately after the Dencun upgrade, there was a massive drop in fees for the L2 – here by around 98 percent, according to data from Crypto.com.
The fact that Ethereum’s path to scaling via Layer-2 can be successful is also reflected in the latest developments, which are supported by on-chain data. Because the growth in the L2 ecosystem is intact – there have recently been all-time highs in active addresses on many L2s, including Optimism.
Altcoins with potential: 99Bitcoins starts innovative presale
If you don’t want to bet everything on Bitcoin or altcoins like Optimism, you can also be more risk-conscious. Crypto presales represent a particularly speculative segment of the crypto market that sometimes offers attractive opportunities for investors willing to take risks. A current example of this is the 99Bitcoins project , which aims to create an innovative connection between education and blockchain technology with its learn-to-earn approach. This model allows users to directly benefit and make money by learning crypto knowledge. Not only should this be lucrative, but it should also encourage crypto adoption.
Shortly after launching its presales, 99Bitcoins has already raised well over $200,000, supported by a strong community with over 700,000 YouTube subscribers. This could be a game changer for 99Bitcoins. The next price increase in around 72 hours offers a final opportunity for maximum book profits.
