Layer 1 Crypto Token Surge Brings 200% Gains During August
01 September 2021 - 4:00AM
NEWSBTC
Arcane Research recently published a crypto market update and
explored the rise of layer 1 tokens over the past 30 days. The
season of “ETH Killers” as the research firm and many others have
called them. Although the second cryptocurrency by market cap was
leading the crypto market up until a few weeks ago, its competitors
have been gaining traction, smashing all resistance towards new
all-time highs. As seen in the chart below, some layer 1 tokens in
the crypto market have experienced massive rallies in August.
Solana (SOL) leads the chart with a 221% rally, followed by Terra
(LUNA) with a 217% rally, Fantom (FTM), and Avalanche (AVAX), sit
at the last spots of the biggest layer 1 tokens with a 215% and
210% rally, respectively. Binance Coin (BNB, 38%), Ethereum (ETH,
28%), and Polygon (MATIC, 22%), also made the cut with important
profits in the same period. Crypto exchange Binance’s token slowed
down on its late 2020 rally. Similar to SOL, LUNA, and AVAX, BNB
surged on the back of the DeFi boom as users migrated to the
Binance Smart Chain ecosystem due to its high fees. Solana seems to
have taken part in its market share. Arcane Research noted the
increase in this token’s market from $9.5 billion to $35 billion in
one month. SOL climbed its way to the 8th position in the crypto
top 10 by market cap. The report attributes SOL’s appreciation to
its high throughput of 50,000 transactions per second with low fees
when compared to Ethereum. This has made Solana attractive for
developers. As NewsBTC reported, some experts believe SOL will be
one of the best performing crypto assets of 2021. Despite its 221%
rally in August, there seems to be room for more appreciation based
on the token’s growing fundamentals. Ethereum, King Of Crypto In
The DeFi Sector The DeFi and the increase in adoption of the
non-fungible tokens (NFTs) sector could determine which crypto will
dominate the market in the coming months. In that sense, the total
value locked (TVL), a controversial metric due to its “sketchy”
accuracy, in Solana recently surpassed the $2 billion mark.
However, Arcane Research claims that no layer 1 network will be
able to outperform Ethereum in terms of DeFi market share. Data
from DeFi Pulse record a TVL of $89 billion for all DeFi protocols.
The Ethereum network has supremacy in this sector, the most popular
dApps are hosted on its ecosystem. Aave, MakerDAO, Curve Finance,
Compound, Uniswap, Yearn Finance, SushiSwap. These protocols have a
total value locked (TVL) ranging from $4.2 to $15.86 billion. The
smallest DeFi protocol in the Ethereum top 10 by TVL has double
that held on Solana, Arcane Research claimed: ETH has experience
growing transaction fees amid the NFT frenzy, possibly attracting
more users to other chains. However, in the ecosystem overall,
Ethereum remains the clear leader, and it seems unlikely that any
other protocol will dethrone Ethereum’s position in the near
future. At the time of writing, ETH trades at $3,398. The second
crypto by market cap has a 5.2% profit in the daily chart.
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