Ethereum Layer 2 tokens stir unexpected crypto optimism

Arbitrum and ImmutableX started price rallies in response to the SEC’s regulatory crackdown. Optimism completed its Bedrock hard fork earlier today, reducing the Layer 2 solution’s gas fees by 40%. OP, ARB and IMX prices yielded between 3% and 6% gains for holders since Tuesday.

In other words, while mainstream cryptocurrencies took a hit after the US financial regulator’s actions, Layer 2 tokens such as Optimism (OP), Arbitrum (ARB) and Immutable X (IMX) yielded gains for holders. The price rallies in Layer 2 tokens are likely a spillover effect of decentralized exchanges’ popularity after the legal woes faced by Binance and Coinbase.

Despite the common belief that US regulators’ warpath will not cause global problems for crypto, Bitcoin (BTC) price remains below the foothold of a slow-moving Simple Moving Average (SMA), suggesting a lack of buyer participation. The king of crypto’s mood has affected the crypto top ten, including Ethereum (ETH) and Ripple (XRP).