Last week’s crypto market saw a notable recovery, defying the historical trend of August being bearish. Bitcoin surged to $65,000 from a low below $50,000, fueled by investors reacting positively to the Fed’s signals for interest rate cuts. Ethereum (ETH) led the rebound among altcoins, with Polygon (MATIC), Arbitrum (ARB), and Optimism (OP) showing significant gains, hinting at an emerging altcoin season.

Investors should consider buying and holding Polygon, Arbitrum, and Optimism as we approach Q4. Polygon, valued at $0.5132, has shown impressive growth but recently pulled back slightly. The upcoming rebrand from MATIC to POL, set for September 4, is expected to boost investor interest. Additionally, a surge in new addresses suggests increasing demand for Polygon.

Arbitrum, valued at $0.5915, has seen strong performance with an 11% weekly gain. The rise in its DeFi TVL to $2.83 billion indicates growing investor confidence. Optimism, trading at $1.63, has also shown strong performance, with 88% of its supply profitable. Its robust support at $1.33 suggests potential for future gains. Each of these Layer 2 solutions offers compelling reasons for investors to buy and hold as the market enters Q4.