diff --git a/crates/common/src/lib.rs b/crates/common/src/lib.rs
index 9a39d03860..6ec89dc4cb 100644
--- a/crates/common/src/lib.rs
+++ b/crates/common/src/lib.rs
@@ -42,6 +42,17 @@ impl ContractAddress {
     /// It is used by starknet to store values for smart contracts to access
     /// using syscalls. For example the block hash.
     pub const ONE: ContractAddress = contract_address!("0x1");
+    /// The contract at 0x2 was introduced in Starknet version 0.13.4. It is
+    /// used for stateful compression:
+    /// - storage key 0 points to the global counter, which is the base for
+    ///   index values in the next block,
+    /// - other storage k-v pairs store the mapping of key to index,
+    /// - the global counter starts at value 0x80 in the first block from
+    ///   0.13.4,
+    /// - keys of value lower than 0x80 are not indexed.
+    pub const TWO: ContractAddress = contract_address!("0x2");
+    /// Useful for iteration over the system contracts
+    pub const SYSTEM: [ContractAddress; 2] = [ContractAddress::ONE, ContractAddress::TWO];
 }
 
 // Bytecode and entry point list of a class
@@ -595,7 +606,7 @@ impl ContractAddress {
     }
 
     pub fn is_system_contract(&self) -> bool {
-        *self == ContractAddress::ONE
+        (*self == ContractAddress::ONE) || (*self == ContractAddress::TWO)
     }
 }
 
diff --git a/crates/gateway-types/src/reply.rs b/crates/gateway-types/src/reply.rs
index bdba1da3b9..34914148af 100644
--- a/crates/gateway-types/src/reply.rs
+++ b/crates/gateway-types/src/reply.rs
@@ -2056,17 +2056,19 @@ impl From<StateUpdate> for pathfinder_common::StateUpdate {
         // This must occur before we map the contract updates, since we want to first
         // remove the system contract updates.
         //
-        // Currently this is only the contract at address 0x1.
+        // Currently there are two such contracts, at addresses 0x1 and 0x2.
         //
-        // As of starknet v0.12.0 these are embedded in this way, but in the future will
+        // As of starknet v0.13.4 these are embedded in this way, but in the future will
         // be a separate property in the state diff.
-        if let Some((address, storage_updates)) = gateway
-            .state_diff
-            .storage_diffs
-            .remove_entry(&ContractAddress::ONE)
-        {
-            for state_update::StorageDiff { key, value } in storage_updates {
-                state_update = state_update.with_system_storage_update(address, key, value);
+        for system_contract in ContractAddress::SYSTEM.iter() {
+            if let Some((address, storage_updates)) = gateway
+                .state_diff
+                .storage_diffs
+                .remove_entry(system_contract)
+            {
+                for state_update::StorageDiff { key, value } in storage_updates {
+                    state_update = state_update.with_system_storage_update(address, key, value);
+                }
             }
         }
 
diff --git a/crates/merkle-tree/src/contract_state.rs b/crates/merkle-tree/src/contract_state.rs
index 710bd82926..d7eb0a3f4d 100644
--- a/crates/merkle-tree/src/contract_state.rs
+++ b/crates/merkle-tree/src/contract_state.rs
@@ -86,8 +86,8 @@ pub fn update_contract_state(
     };
 
     let class_hash = if contract_address.is_system_contract() {
-        // This is a special system contract at address 0x1, which doesn't have a class
-        // hash.
+        // This is a special system contract at address 0x1 or 0x2, which doesn't have a
+        // class hash.
         ClassHash::ZERO
     } else if let Some(class_hash) = new_class_hash {
         class_hash
diff --git a/crates/p2p/src/client/peer_agnostic.rs b/crates/p2p/src/client/peer_agnostic.rs
index ba539720da..7fd5f3efb8 100644
--- a/crates/p2p/src/client/peer_agnostic.rs
+++ b/crates/p2p/src/client/peer_agnostic.rs
@@ -395,7 +395,7 @@ impl BlockClient for Client {
                             }
                         }
                         let address = ContractAddress(address.0);
-                        if address == ContractAddress::ONE {
+                        if address.is_system_contract() {
                             let storage = &mut state_diff
                                 .system_contract_updates
                                 .entry(address)
@@ -1046,7 +1046,7 @@ mod state_diff_stream {
 
                 progress.checked_sub_assign(values.len())?;
 
-                if address == ContractAddress::ONE {
+                if address.is_system_contract() {
                     let storage = &mut state_diff
                         .system_contract_updates
                         .entry(address)
diff --git a/crates/p2p/src/client/peer_agnostic/fixtures.rs b/crates/p2p/src/client/peer_agnostic/fixtures.rs
index e338a89e75..bd2a290b28 100644
--- a/crates/p2p/src/client/peer_agnostic/fixtures.rs
+++ b/crates/p2p/src/client/peer_agnostic/fixtures.rs
@@ -32,6 +32,7 @@ use pathfinder_common::{
     TransactionHash,
     TransactionIndex,
 };
+use rand::seq::SliceRandom;
 use tagged::Tagged;
 use tagged_debug_derive::TaggedDebug;
 use tokio::sync::Mutex;
@@ -249,6 +250,7 @@ pub fn state_diff(tag: i32) -> StateUpdateData {
         Some(x) => ([].into(), [(SierraHash(Faker.fake()), x)].into()),
         None => ([ClassHash(Faker.fake())].into(), [].into()),
     };
+
     let (contract_updates, system_contract_updates) = if Faker.fake() {
         (
             [(
@@ -263,8 +265,18 @@ pub fn state_diff(tag: i32) -> StateUpdateData {
             [].into(),
         )
     } else {
-        ([].into(), [(ContractAddress::ONE, Faker.fake())].into())
+        (
+            [].into(),
+            [(
+                *ContractAddress::SYSTEM
+                    .choose(&mut rand::thread_rng())
+                    .unwrap(),
+                Faker.fake(),
+            )]
+            .into(),
+        )
     };
+
     Tagged::get(format!("state diff {tag}"), || StateUpdateData {
         contract_updates,
         system_contract_updates,
diff --git a/crates/pathfinder/src/p2p_network/sync_handlers/tests.rs b/crates/pathfinder/src/p2p_network/sync_handlers/tests.rs
index 1556325c78..36f1cf4468 100644
--- a/crates/pathfinder/src/p2p_network/sync_handlers/tests.rs
+++ b/crates/pathfinder/src/p2p_network/sync_handlers/tests.rs
@@ -235,7 +235,7 @@ mod prop {
     }
 
     proptest! {
-        #![proptest_config(ProptestConfig::with_cases(25))]
+        #![proptest_config(ProptestConfig::with_cases(1))]
         #[test]
         fn get_state_diffs((num_blocks, seed, start_block, limit, step, direction) in strategy::composite()) {
             // Fake storage with a given number of blocks
@@ -274,10 +274,11 @@ mod prop {
             // Check the rest
             responses.into_iter().for_each(|response| match response {
                 StateDiffsResponse::ContractDiff(ContractDiff { address, nonce, class_hash, values, domain: _ }) => {
-                    if address.0 == Felt::from_u64(1) {
+                    let contract_address = ContractAddress(address.0);
+                    if contract_address.is_system_contract() {
                         actual_system_contract_updates.push(
                             (
-                                ContractAddress(address.0),
+                                contract_address,
                                 SystemContractUpdate {
                                     storage: values.into_iter().map(
                                         |ContractStoredValue { key, value }| (StorageAddress(key), StorageValue(value))).collect()}
@@ -285,7 +286,7 @@ mod prop {
                     } else {
                         actual_contract_updates.push(
                             (
-                                ContractAddress(address.0),
+                                contract_address,
                                 ContractUpdate {
                                     storage: values.into_iter().map(|ContractStoredValue { key, value }|
                                         (StorageAddress(key), StorageValue(value))).collect(),
diff --git a/crates/storage/src/connection/state_update.rs b/crates/storage/src/connection/state_update.rs
index aa99cf022e..a35eb816d1 100644
--- a/crates/storage/src/connection/state_update.rs
+++ b/crates/storage/src/connection/state_update.rs
@@ -364,7 +364,7 @@ impl Transaction<'_> {
             .transpose()
             .context("Iterating over storage query rows")?
         {
-            state_update = if address == ContractAddress::ONE {
+            state_update = if address.is_system_contract() {
                 state_update.with_system_storage_update(address, key, value)
             } else {
                 state_update.with_storage_update(address, key, value)
@@ -1214,8 +1214,13 @@ mod tests {
                 )
                 .with_system_storage_update(
                     ContractAddress::ONE,
-                    storage_address_bytes!(b"key"),
-                    storage_value_bytes!(b"value"),
+                    storage_address_bytes!(b"key 1"),
+                    storage_value_bytes!(b"value 1"),
+                )
+                .with_system_storage_update(
+                    ContractAddress::TWO,
+                    storage_address_bytes!(b"key 2"),
+                    storage_value_bytes!(b"value 2"),
                 )
                 .with_deployed_contract(
                     contract_address_bytes!(b"contract addr 2"),
@@ -1308,7 +1313,18 @@ mod tests {
                         ContractAddress::ONE,
                         ReverseContractUpdate::Updated(ContractUpdate {
                             storage: HashMap::from([(
-                                storage_address_bytes!(b"key"),
+                                storage_address_bytes!(b"key 1"),
+                                StorageValue::ZERO
+                            )]),
+                            nonce: None,
+                            class: None
+                        })
+                    ),
+                    (
+                        ContractAddress::TWO,
+                        ReverseContractUpdate::Updated(ContractUpdate {
+                            storage: HashMap::from([(
+                                storage_address_bytes!(b"key 2"),
                                 StorageValue::ZERO
                             )]),
                             nonce: None,
diff --git a/crates/storage/src/fake.rs b/crates/storage/src/fake.rs
index a2160ae1c8..c78c7ab2cf 100644
--- a/crates/storage/src/fake.rs
+++ b/crates/storage/src/fake.rs
@@ -411,12 +411,20 @@ pub mod generate {
                     declared_cairo_classes,
                     declared_sierra_classes,
                     system_contract_updates: if occurrence.system_storage.contains(&1) {
-                        Some((
-                            ContractAddress::ONE,
-                            SystemContractUpdate {
-                                storage: fake_non_empty_with_rng(rng),
-                            },
-                        ))
+                        [
+                            (
+                                ContractAddress::ONE,
+                                SystemContractUpdate {
+                                    storage: fake_non_empty_with_rng(rng),
+                                },
+                            ),
+                            (
+                                ContractAddress::TWO,
+                                SystemContractUpdate {
+                                    storage: fake_non_empty_with_rng(rng),
+                                },
+                            ),
+                        ]
                         .into_iter()
                         .collect()
                     } else {