Ethereum's Pectra Upgrade Triggers a Surge in Layer-2 Solutions Arbitrum (ARB), Starknet (STRK), and Mantle (MNT)

input: Ethereum’s Pectra Upgrade, launched a few days ago has already triggered a consequential surge in the cryptocurrency’s market value. Beyond ETH itself, a crypto analyst has now highlighted a few of the Ethereum-based altcoins, specifically Layer-2 solutions, that would experience a significant boost following the latest upgrade.

The recent Pectra upgrade on Ethereum has triggered a consequential surge in the cryptocurrency’s market value.

Beyond ETH itself, a crypto analyst has now highlighted a few of the Ethereum-based altcoins that would experience a significant boost following the latest upgrade.

In a recent podcast, the analyst identified three layer-2 Ethereum solutions whose native tokens he asks users to watch out for in the future: Arbitrum (ARB), Starknet (STRK), and Mantle (MNT).

Arbitrum (ARB) Set for Enhanced Scalability and Lower Fees Post-Pectra

According to the analyst, Arbitrum, an Ethereum-based layer-2 scaling solution, will benefit significantly from the latest network improvement.

Part of Arbitrum’s benefits from the Pectra upgrade are an expanded block space and more efficient data availability. The analyst noted that the highlighted benefits would allow Arbitrum to reduce its layer-1 settlement fees and scale more efficiently.

Related: Ethereum’s ETH/BTC Squeeze Could Kick Off Post-Pectra Price Rotation

The new upgrade’s smart account functionality enables gasless transactions, batching, and simplified onboarding, enhancing developers’ and users’ experience on Arbitrum.

Starknet (STRK) and Mantle (MNT) Also Primed for Pectra-Driven Growth

Meanwhile, the analyst thinks Starknet will also benefit significantly from Ethereum Pectra, considering the improvements in data availability and validator operations. He believes these benefits would enable Starknet’s development in multiple ways, including block space enhancement and directly supporting cheaper and more scalable call data processing.

Mantle (MNT) completes the analyst’s three choices of Layer-2 solutions that will benefit the most from the Pectra upgrade. According to the analyst, indirect improvements resulting from the upgrade will support Mantle’s modular architecture and staking design. The analyst highlighted the upgrade feature that raises the validator staking limit as a crucial factor that enhances large-scale staking operations.

Related: Can Ethereum Overcome Rising Supply and Weakened Demand? The Pectra Upgrade’s Role

From an overall perspective, improving the core attributes of these Layer-2 solutions makes them more attractive to developers. This, in turn, could very well result in improved adoption for Arbitrum, Starknet, and Mantle.

Hence, besides Ethereum, the layer-2 protocols running on the network would experience increased demand for their native tokens, leading to higher market values and more economic benefits for the tokens’ holders.

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