Ethereum's Pectra Upgrade Boosts Layer-2 Tokens: ARB, STRK, MNT, AEVO, FUEL

The Pectra upgrade introduces several key improvements to the Ethereum network, including expanded blob space, smart accounts, and validator enhancements. These changes are expected to significantly impact Ethereum Layer-2 ecosystems, benefiting tokens such as Arbitrum (ARB), StarkNet (STRK), Mantle (MNT), Aevo (AEVO), and Fuel (FUEL). These tokens are positioned to gain from lower data costs, increased scalability, and enhanced functionality, which could act as a tailwind in the coming weeks.

Arbitrum (ARB) stands to benefit from the Pectra upgrade through expanded blob space and more efficient data availability, which can reduce L1 settlement fees and improve scalability. Additionally, EIP-7702 introduces smart account functionality, enabling gasless transactions, batching, and simplified onboarding, all of which enhance the experience for developers and end users building on Arbitrum.

StarkNet (STRK) will also see improvements in data availability and validator operations, supporting cheaper and more scalable calldata posting. This is particularly beneficial for zk-rollups like StarkNet, which rely heavily on L1 for data availability. EIP-7002 allows for more flexible validator withdrawals, supporting future integrations of re-staking protocols and simplifying cross-chain liquidity movements.

Mantle (MNT) benefits from the Pectra upgrade through improvements that support its modular architecture and staking design. EIP-7251 raises the validator staking limit, making large-scale staking operations more efficient. This change simplifies validator management and enhances the economic security of protocols that rely on Ethereum as a base layer. The expansion of blob space also contributes to lower L1 data costs, supporting cheaper and more scalable interactions for Mantle’s modular rollups and Layer 2 applications.

Aevo (AEVO), a high-performance derivatives platform built on Layer 2 infrastructure, stands to benefit from the Pectra upgrade through lower data availability costs and improved scalability. The expansion of blob space reduces calldata fees for L2s, which is crucial for platforms like Aevo that rely on frequent state updates and high transaction throughput. This directly translates to cheaper and faster settlement for perpetuals and options. Additionally, smart account functionality from EIP-7702 could enable features like gasless trading or streamlined account recovery, enhancing the trading experience and reducing friction for users interacting with Aevo’s contracts.

Fuel Network (FUEL), a modular execution layer focused on high throughput and developer flexibility, is well-positioned to benefit from Ethereum’s Pectra upgrade. The expanded blob space significantly reduces the cost of posting data to Ethereum, which is crucial for Fuel’s rollup architecture. This allows Fuel to scale transaction volumes more efficiently while maintaining decentralization. Additionally, smart account functionality from EIP-7702 aligns with Fuel’s goal of improving UX and developer tooling, enabling more advanced wallet interactions, gasless flows, and streamlined onboarding for users deploying dApps on Fuel’s stack.

While all five tokens have recently faced price corrections, the on-chain upgrades introduced by the Pectra upgrade could act as a tailwind in the coming weeks. Each of these Layer-2s is positioned to gain from Ethereum’s evolving infrastructure, and if momentum returns, upside potential is on the table. However, it is important to note that these tokens have seen recent price corrections, and their future performance will depend on various factors, including market conditions and the adoption of the Pectra upgrade by the Ethereum community.