Top-performing Ethereum Layer 2 solutions like Arbitrum, Optimism, and BASE have outpaced prominent Ethereum competitor Layer 1 blockchains such as Solana and Avalanche in terms of total value locked (TVL) as of September 25, 2023, according to Grayscale. This shift is pivotal as it demonstrates the growing significance of Layer 2 solutions in enhancing the scalability and transactional capacity of the Ethereum network.
Layer 1 refers to the base protocol layer of a blockchain network. It encompasses the fundamental rules governing the network, including consensus algorithms, transaction validation processes, and the creation of new blocks. Layer 1 solutions are integral to the operation of a blockchain and include established networks like Bitcoin, Ethereum, Solana, and Avalanche. However, as blockchain networks grow in popularity, scalability issues arise, often leading to slower transaction speeds and higher fees.
Layer 2 solutions are secondary protocols built atop Layer 1 blockchains, aiming to alleviate scalability issues by offloading transaction processing from the main chain. These solutions retain the security guarantees of the underlying Layer 1 blockchain while providing faster transactions and lower fees. Examples of Layer 2 solutions include Arbitrum, Optimism, and BASE, which operate on top of the Ethereum blockchain.
Layer 2 blockchains operate by processing transactions from decentralized applications (dApps) and subsequently “batching” them together. This batch of transactions is then sent back to the main network in a compressed form for final settlement. This mechanism serves as an auxiliary route or even a dedicated bus lane augmenting a major highway, thus optimizing the transaction process.
By functioning as outlined, Layer 2s enhance the overall usability and transaction potential of the Ethereum ecosystem while still leveraging the network’s fundamental security. As the Ethereum network scales further, a significant amount of activity can transition to the more cost-effective Layer 2 solutions. This transition, in turn, directs value back to Ethereum, further bolstering its position in the blockchain sphere.
Among the 31 active Ethereum Layer 2 projects listed by L2Beat, five projects namely Optimism, Arbitrum, BASE, Starknet, and zkSync are recognized for their standout performance in fundamental metrics. A chart released by Grayscale on September 27, 2023, sheds light on these top Layer 2s by TVL. It’s noteworthy that while Arbitrum and Optimism have launched a token, BASE, Starknet, and zkSync have yet to do so. The market caps column within the chart signifies the market cap for each respective token.
A recent report by Will Hamilogden delves deeper into the landscape of Layer 2s within the Ethereum ecosystem, providing a more extensive understanding of this burgeoning sector. The report is available on Grayscale’s website for individuals seeking a more comprehensive exploration of Layer 2s and their role in scaling Ethereum.
Source: L2BEAT
The data from L2BEAT reveals that as of October 2, 2023, the sum of all funds locked on Ethereum converted to USD stands at $10.78 billion, marking a 4.64% growth over the past seven days. The TVL across various projects underscores the growing traction of Layer 2 solutions. For instance, Arbitrum One leads with a TVL of $6.03 billion, followed by OP Mainnet with $2.70 billion, and zkSync Era with $459 million.
The ascent of Layer 2s such as Arbitrum, Optimism, and BASE in terms of TVL is a testament to their value proposition in augmenting the Ethereum ecosystem. By surpassing notable Layer 1s like Solana and Avalanche, these Layer 2s have showcased their potential in fostering a more scalable and cost-effective environment for dApps, thereby contributing significantly to the advancement of the blockchain technology landscape.
Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.
Ethereum’s co-founder, Vitalik Buterin, in a blog post dated September 30, 2023, delved into the ongoing discourse around protocol enhancements concerning Layer 1 (L1) and Layer 2 (L2) solutions. Initially, Ethereum was driven by a minimalistic approach, focusing on a simple core protocol while enabling functionalities through protocols built atop it. However, recent discussions have leaned towards incorporating more features into the core protocol to address various needs like digital asset exchange, privacy, and account safety among others.
Early Minimalism Philosophy
The early design aimed for a ‘clean, simple and beautiful protocol,’ minimizing enshrined logic in transaction processing. This minimalist approach was particularly targeted at addressing scaling and account abstraction. Back in 2015, these concepts were aimed at reducing the protocol’s intrinsic complexity, with scaling envisioned as a maximally abstracted form that seamlessly extended Ethereum’s capabilities.
Account Abstraction Challenges
Buterin recounted challenges faced with account abstraction proposals, notably EIP 86, which sought to simplify transaction processing but inadvertently introduced complexity. The complexity, as highlighted, emanated from the change in responsibility, pushing more logic onto miners (now block proposers) in the transaction acceptance process.
The Shift Towards Enshrinement
The discourse has since shifted towards enshrining certain functionalities to address inherent challenges. For instance, ERC-4337, an extra-protocol solution, aimed at making transactions cheaper by reducing EVM’s overhead. However, the medium-term roadmap for ERC-4337 suggests enshrining parts of it into the protocol for better gas efficiency and censorship resistance.
The Case of ZK-EVMs
Zero-Knowledge Ethereum Virtual Machines (ZK-EVMs) were also explored as potential enshrinement targets. These are vital for verifying EVM execution within ZK-SNARKs, and the discussion revolves around leveraging Ethereum’s social consensus for handling bugs and upgrades in L2 ZK-EVMs.
Proposer-Builder Separation
Buterin also discussed enshrining proposer-builder separation (ePBS) due to the rise in Miner Extractable Value (MEV) and the emergence of specialized block builders. The in-protocol enshrinement of ePBS could potentially mitigate trust assumptions tied to new actor categories like relays, which are part of extra-protocol solutions like MEV-Boost.
Private Mempools and Liquid Staking
The discourse extends to enshrining private mempools to combat frontrunning and exploring in-protocol functionalities for liquid staking to mitigate centralization risks. These enshrinements aim to address specific user demands and system inefficiencies while considering the trade-offs involved.
Precompiles Enshrinement
Lastly, the blog touched on the enshrinement of precompiles to expedite specific cryptographic operations. The push for new precompiles, like secp256r1, seeks to improve wallet security through trusted hardware modules.
In summary, Buterin’s post reflects a nuanced examination of Ethereum’s protocol enhancement strategies, weighing the trade-offs between minimalistic design and enshrining additional functionalities to meet evolving user needs and system demands.
BNB Chain and MetaMask have resolved a glitch that made opBNB’s gas fees appear unusually high.
The issue was due to MetaMask’s default minimum recommendation price for gas, which was not aligned with opBNB’s lower gas fees.
The corrected algorithm now accurately reflects opBNB’s lower gas fees, offering users fast, cheap, and secure transactions.
The Glitch Explained
MetaMask had initially set a default minimum recommendation price for gas based on the average of all networks. While this approach generally works for most Layer 1 (L1) and Layer 2 (L2) networks, it did not align with the gas price structure of opBNB. As a result, users were under the impression that opBNB was more expensive or slower than it actually is.
Collaboration for a Solution
BNB Chain reached out to MetaMask to address the issue. MetaMask was “extremely helpful and agreed to update their algorithm to accurately reflect the true opBNB gas price,” according to BNB Chain’s official statement. This collaborative effort led to an immediate solution, ensuring that the gas fees displayed are now in line with what opBNB actually charges.
Verifying the Fix
Users can verify the corrected gas fees by switching to the opBNB network on MetaMask and comparing the gas fee with other networks. The update aims to provide a more accurate representation of opBNB’s competitive advantage in terms of lower gas fees, especially when the network is not congested.
Implications for the Web3 Ecosystem
The resolution of this glitch is a significant step towards building a more robust and user-friendly Web3 ecosystem. It not only saves users money, time, and energy but also supports a decentralized and scalable blockchain.
Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.
According to Messari’s report, Fantom is a Layer-1 blockchain with smart contract capabilities, focusing on DeFi, NFTs, and gaming.
The network uses an aBFT consensus mechanism and an EVM-compatible state machine.
Despite market downtrends, Fantom has seen growth in daily transactions and active addresses.
The network is planning significant upgrades, including a new StateDB storage system and Fantom Virtual Machine (FVM).
Fantom’s DeFi ecosystem experienced a setback due to a Multichain bridge exploit but is recovering with new initiatives.
Background and Technology
Founded in late 2019 by Andre Cronje and Michael Kong, Fantom aims to address blockchain scalability and usability issues. It uses an asynchronous Byzantine fault-tolerant (aBFT) consensus mechanism known as Lachesis and an EVM-compatible state machine called Opera. The network achieves sub-second finality (~900 ms), offering advantages like transaction certainty, better user experience, and energy efficiency, according to Messari.
Network Activity and Ecosystem
Fantom’s network activity has seen several cycles since its launch. Despite a broader market downtrend, average daily transactions and active addresses have grown year-to-date compared to late 2021. The Fantom ecosystem comprises DeFi protocols, NFT marketplaces, and gaming applications. Initiatives like the Gas Monetization program and Ecosystem Vault aim to attract developers and grow the ecosystem.
DeFi and Security Challenges
Fantom hosts about $94 million in total value locked (TVL) as of now, a significant drop due to a Multichain bridge exploit in July 2023. The network is taking measures to recover, including collaborations with Axelar Network and Layer Zero to provide additional bridging liquidity.
Upcoming Technical Improvements
Fantom plans to introduce a new StateDB storage system and Fantom Virtual Machine (FVM) in the coming months. These upgrades aim to increase the network’s scalability and efficiency. Additionally, account abstraction is on the roadmap to improve wallet management and user experience.
Ethereum, Solana, and Avalanche are some of the top performing assets over the past 24 hours.
As macroeconomic conditions are still uncertain, it may be too soon to call the current price movement the beginning of a recovery.
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Several Layer 1 chains have rallied as the wider crypto market appears to be staging a recovery.
Layer 1s Climb Higher
Layer 1 chains are leading the crypto market.
After dipping to their lowest levels in over six months, several Layer 1 chains appear to be staging a recovery.
Ethereum has continued producing higher highs on the local timescale, reaching a price of $2,868 earlier this morning. The second-biggest crypto asset is now trading at its highest levels since crashing over 35% in mid-January. Ethereum is quickly approaching the psychological price barrier of $3,000, which is likely to be the next big test for the asset.
ETH/USD chart. Source: CoinGecko
Solana is another top performer, putting in an 11% gain over the past 24 hours. Despite SOL falling 13.5% following the $322 million hack on one of the chain’s major bridges, the token has shown a strong recovery. Other recent news, such as Solana Labs CEO Anatoly Yakovenko’s proposition to introduce a fee market on Solana may be acting as a bullish catalyst for the chain. Solana is currently trading at $105.55, up 29% from its January low of $81.41.
Not to be left behind, the Ethereum-compatible Layer 1 chain Avalanche is also retesting higher levels. The AVAX token has risen a modest 8% on the day and appears to be taking another shot at holding above its current resistance level of $70. Avalanche has breached this price point three times in the past two weeks but has been unable to hold onto its gains.
While Layer 1 chains are enjoying positive price action today, the wider crypto market still appears to be at the whim of macroeconomic conditions. Bitcoin and Ethereum’s correlation to the U.S. stock market is at its highest level in over four years, as fears over the Fed’s proposed rate hikes loom.
Elsewhere, tensions between the U.S. and Russian governments over a possible Russian invasion of Ukraine are also putting a damper on global markets, including crypto. With these unknown variables still in play, it’s likely too early to decisively call today’s price action the beginning of a crypto market recovery.
Disclosure: At the time of writing this feature, the author owned ETH, SOL, and several other cryptocurrencies.
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You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Fantom and NEAR are soaring amid high demand for Layer 1 coins.
The recent rise follows the SOLUNAVAX trend that dominated the second half of 2021.
An upcoming Fantom project involving Andre Cronje and Daniele Sestagalli may explain FTM’s recent rally.
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Fantom and NEAR are two of the latest Layer 1 coins to rally.
Crypto Layer 1 Boom Continues
Layer 1 hype isn’t dead yet.
Several smart contract blockchains have seen their native tokens rally this week despite a decline among major assets like Bitcoin and Ethereum. Two of the latest winners are Fantom and NEAR Protocol.
FTM has jumped 15.5% in the last 24 hours, currently trading at $2.88. NEAR, meanwhile, is up 16.1%, trading at $16.91. The rise comes amid a bullish spell for both assets: FTM is up 109.3% in the last 14 days, while NEAR has gained 97.7% in the same period. Other Layer 1 assets like Oasis Network, Celo, and Harmony have also risen, though their gains have been less significant. Fantom has a market cap of $7.3 billion, while NEAR’s is around $10.1 billion.
Interestingly, the popular DeFi builders Andre Cronje and Daniele Sestagalli have been teasing plans for a new Fantom-based product on Twitter over the last few days, which may have contributed to Fantom’s sudden jolt. “What’s frog nation’s multisig address on Fantom? Asking for a friend…” Cronje wrote Monday. The Yearn.Finance founder had previously confirmed that he was planning to “deploy a new experiment” on Fantom in January.Following Cronje’s tweet, Sestagalli warned his followers that “FTM season is coming.” Crypto enthusiasts often refer to “seasons” due to the speed at which the space moves: late 2021 saw a so-called NFT season, a dog coin season, and a Metaverse season in the space of a few months as traders rotated between different niches in the crypto ecosystem.
Soon you will witness how the Frog Nation ecosystem works in tandem . Blows my mind how fast we can organise the perfect launch. 🪨📄✂️what will you choose? $FTM season is coming DYOR accordingly.
— Daniele 🐸✊ (@danielesesta) January 3, 2022
The “Frog Nation,” meanwhile, refers to a community that has formed around Sestagalli’s Abracadabra.Money, Wonderland Money, and Popsicle Finance, three innovative projects that place emphasis on preserving decentralization in DeFi. Many have categorized this new suite of products under a new movement called “DeFi 2.0” alongside the likes of Tokemak and Olympus DAO.
Although both Fantom and NEAR have seen substantial growth over the last year, they were overshadowed by Solana, Terra, and Avalanche—three Layer 1 networks that have exploded in recent months thanks to rapid growth in their respective DeFi ecosystems. While Ethereum was weighed down by its expensive gas fees throughout 2021, many market participants turned their attention to the so-called “SOLUNAVAX” narrative, a reference to SOL, LUNA, and AVAX. Solana was the first of the three to enjoy its own “season” as it went parabolic, followed by Avalanche, and finally Terra.
While the market looked shaky throughout much of December, 2022 has kicked off with several lower cap coins outperforming major assets. Following a weak end to 2021, both Bitcoin and Ethereum have both seen a slight tumble in the last 24 hours, pushing Solana, Terra, and Avalanche further into the red. However, based on the recent performance of Fantom and NEAR, it looks like traders are set on making yet another Layer 1 rotation.
Disclosure: At the time of writing, the author of this feature owned ETH, FTM, and several other cryptocurrencies. Andre Cronje is an equity holder in Crypto Briefing.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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While still comparatively small, Terra’s DeFi ecosystem boasts one of the most innovative decentralized applications in crypto.
Terra Station is the go to wallet for users wishing to participate and interact with the network.
Staking LUNA currently yields over 7% annualized, and the staked asset, bLUNA, can be utilized as collateral for farming yield farming via projects like Anchor.
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Terra is a smart contract blockchain protocol and payments-focused financial ecosystem powered by algorithmically governed, scalable, and decentralized fiat-pegged stablecoins. Terra’s ecosystem offers an innovative suite of DeFi products, making the protocol worthy of exploration.
About Terra
Launched in January 2018,Terrais a scalable, high-throughput blockchain protocol built on the Cosmos SDK. It uses the Tendermint Delegated-Proof-of-Stake (DPoS) consensus mechanism to guarantee sufficient decentralization while offering low-cost transactions with fast settlement speeds. What sets Terra apart, however, isn’t the high performance of the underlying technology but the thrivingecosystemof innovative and unique user-centric applications built on it.
Decentralized applications like Anchor, Mirror, Pylon, Mars, and Spectrum have unlocked a world of investing and yield farming opportunities on Terra, attracting hundreds of thousands of users and a notable number of developers to the protocol. Additionally, after completing its recentColumbus 5upgrade, Terra became interoperable with blockchains like Cosmos, Solana, and Polkadot, making its growing ecosystem of DeFi applications more accessible to participants on these blockchains.
Cross-chain interoperability also means more utility and higher demand for Terra’s flagship product—the decentralized, algorithmically governed UST stablecoin. Through bridges likeWormholeand TerraBridge, users can easily move UST between Terra and Ethereum, Binance Smart Chain, and most other blockchains, and use it for various purposes across the multi-chain world.
Creating and Funding a Wallet
Engaging with the Terra ecosystem requires setting up a wallet.
While there are several options to go with, arguably the best one is theTerra Stationwallet created by Terraform Labs. It is a non-custodial wallet available as a mobile app, browser extension, and native Windows and iOS application. It offers a similar user experience to MetaMask, albeit it offers fewer features like in-wallet token swaps or NFT support.
Source: Terra Station
Once you’ve downloaded Terra Station from Terra’sofficial website, follow the few simple steps to create a new wallet. Creating a backup of your Seed Phrase and storing it in a secure, preferably air-gapped environment is paramount here. This is because the Seed Phrase gives you—or anyone else—access to your private key, which in turn provides access to your funds. It’s therefore essential to write down the Seed Phrase on a piece of paper and store it in a safe place, or use a more durable solution such as titanium.
After creating a wallet, you’ll need to fund it with some LUNA tokens. LUNA is Terra’s native staking token used for governance, mining, and a volatility absorption tool for Terra stablecoins that captures rewards through seigniorage and transaction fees. You need LUNA in your wallet to pay for transaction fees. The easiest way to get LUNA is to buy it through a centralized exchange like Binance, Coinbase, Phemex, or FTX. After you’ve done that, simply withdraw the tokens to your Terra Station wallet address, which can be found at the top of the browser extension or your wallet app.
Alternatively, those with funds on Ethereum can purchase a wrapped version of Luna (wLUNA) via Uniswap and transfer it to the Terra Station wallet via the Terra Bridge.
Source: Terra Bridge
Navigating theTerra Bridgeis quite intuitive: connect your Etheruem wallet to Terra Bridge, select the Ethereum network in the “from” dropdown menu on the left-hand side of the app, choose Terra on the right-hand side, select LUNA in the “asset” dropdown, set the amount, paste your Terra Station wallet address in the “destination address,” and click next. Once you’ve approved the transaction in your MetaMask, Terra Bridge will automatically swap wLUNA for LUNA and deposit it to your wallet address on the Terra network. If you have funds on Solana, you can go through the same process to move funds only using theWormhole Bridge.
Exploring Terra
So you’ve created and funded your wallet, and now you’re wondering where to next.
The first thing you might want to do is put the LUNA you’ve purchased to work by staking it onTerra Station. As Terra is a delegated Proof-of-Stake-based protocol, it relies on a set of 130 validators to verify, clear transactions, and secure the network by running full nodes and committing new blocks to the blockchain. In return for their service, validators and delegators can earn a steady stream of revenue from transaction fees and seigniorage, which currently amounts to roughly 7.07% for delegators and 7.47% for validators.
To become a validator on Terra, users must either bond their LUNA tokens for a minimum of 21 days and be amongst the top 130 largest stakers, or have other users delegate their LUNA stakes. This creates a way for everyone to put their LUNA tokens to work by staking or delegating them to validators, who will then share a portion of the revenue they make with their delegators.
Source: Terra Station
To delegate LUNA, navigate to Terra Station and select “Staking” in the menu on the left side of the page. When you do this, a new dashboard showing a list of available validators will open. After you select the validator of your choice by clicking on their name, another dashboard will open, where you’ll be able to delegate your LUNA by clicking on the “delegate” button.
From here, you’re all set, and your bonded LUNA (bLUNA) will automatically accrue yield. However, if that’s not enough and you want to do more, you can use your bLUNA tokens on theAnchorprotocol to earn even more yield by borrowing UST. Anchor pays you to borrow UST with its native ANC token, and the UST can be deposited on the same protocol to earn a fixed 19.49% interest rate.
Borrowing and lending on Anchor is simple. Navigate to the “borrow” page of the app, click on the “borrow” button, set your desired loan-to-value ratio and deposit your bLUNA collateral. Once you’ve done this, you’ll have UST in your wallet, which you can use for whatever you wish, including purchasing other Terra-native tokens onTerraSwap, investing in synthetic stocks or providing liquidity onMirror, or farming on Spectrum Protocol.
Getting familiar with Terra while the ecosystem is still relatively young and developing can give users a serious edge over the wider market. Some of its decentralized applications like Anchor and Mirror have become successful and big enough to rival even some of Ethereum’s DeFi “blue chips.” Terra experienced a breakout period in 2021, entering the top 10 cryptocurrencies by market cap as LUNA soared to above $100 for the first time. With protocols like Mars, Spar, Loop Finance, and Alice expected to launch in early 2022, Terra is well-positioned to continue on its trajectory and see increased adoption in the future.
Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Algorand and NEAR are soaring while Bitcoin and Ethereum lag.
A liquidity mining program on Algorand’s Algofi is bringing in new users.
The strong price action on these networks appears to be fueled by increased DeFi activity.
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The alternative Layer 1 networks Algorand and NEAR have surged as new users jump into their DeFi ecosystems.
Alternative Layer 1s Rally
Algorand and NEAR’s native tokens are outpacing the rest of the market.
Algorand led the crypto market Thursday, rising 17.6% while Bitcoin and Ethereum lagged. The ALGO token bounced from a low of $1.43 late Wednesday to post a strong recovery, trading at $1.68 at press time.
ALGO/USD chart. Source: CoinGecko
Algorand’s solid price action is likely fueled by the launch of a $3 million liquidity mining program to drive DeFi adoption on the network. Algofi, a lending and borrowing protocol similar to Ethereum’s Aave, has partnered with the Algorand Foundation to distribute ALGO token rewards to early users.
DeFi on Algorand is growing quickly. The network’s first decentralized exchange, Tinyman, has already secured over $40 million of total valued locked and sees daily trading volumes of over $5 million. Additionally, an Ethereum and Bitcoin bridge called Algomint launched its own liquidity mining program last week, incentivizing users to bridge their funds onto the network.
NEAR Protocol is another standout today, with its native token climbing 10% over the past 24 hours. Like Algorand, NEAR has also seen DeFi activity pick up on its network. According to data from DeFi Llama, the total value locked on NEAR has increased 19.24% over the past week to more than $133 million.
NEAR also received a boost earlier in December when it partnered with fellow Layer 1 network Terra, kicking off its current rally. The partnership means that Terra will deploy its UST stablecoin to the NEAR and Aurora ecosystems, opening up new DeFi strategies.
While activity on Algorand and NEAR is still low compared to more prominent Layer 1s such as Avalanche and Solana, DeFi on these networks is growing fast. Investors are likely speculating that these alternative networks will see increased valuations following the explosion of Layer 1 chains earlier this year in August. Only time will tell if this Layer 1 trend will continue into 2022.
Disclosure: At the time of writing this feature, the author owned LUNA, SOL, and several other cryptocurrencies.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Cryptocurrency analyst and trader Michaël van de Poppe is plotting out new price targets for Ethereum (ETH) after the leading smart contract platform experienced major growth during 2021.
In a year-end strategy session, Van de Poppe tells his 158,000 YouTube subscribers that Ethereum has not only held up well against the number-one crypto Bitcoin (BTC) but might very well become the focus of the next major crypto cycle.
The crypto strategist thinks widespread market adoption means Ethereum’s market cap could overtake that of Bitcoin, an event known as “the flippening.”
“We might be looking at a flippening of Bitcoin because it’s not only about Bitcoin anymore, it’s about the entire ecosystem.
One of the things that has changed is Ethereum… is being used in decentralized applications, so DEXs [decentralized exchanges] are using Ethereum mostly to trade their assets, which we’re using with Uniswap and SushiSwap.
The actual adoption of the Ethereum ecosystem has been growing relatively fast.
We also know from the NFT [non-fungible token] space that if you want to mint your NFTs you use Ethereum.”
Van de Poppe notes Ethereum’s overall growth and demand despite the network’s high gas fees.
Most importantly, ETH has proven more resilient than Bitcoin during the recent market correction dating back to November.
“Ethereum has been showing way more strength than Bitcoin in the recent correction, which means that the strength in Ethereum is higher than in Bitcoin.
Meaning that potentially this cycle is not anymore about Bitcoin.
It is about layer-1s and Ethereum that are producing the first layer fundamentally for the entire ecosystem, because you need platforms and layer-1s to actually succeed in this entire market space.”
Moving on to his 2022 price predictions, the analyst thinks Ethereum could be on the cusp of explosive growth that mirrors Bitcoin’s action back in 2017. He says ETH could even top $20,000.
“We could be using Fibonacci extensions to derive the next target points, in which we can be saying, ‘Based on the previous low of the cycle, previous high, and we’re reaching somewhere around the 3.618.’
In that case, we could also say, ‘Previous high, previous low,’ we can start targeting ourselves numbers where Ethereum might be topping out, which as a matter of fact target numbers around $12,600, $17,300, and potentially even $22,000.”
Source: Michaël van de Poppe/YouTube
Van de Poppe concludes his upside price prediction by saying that ETH must hold a key support level.
“The crucial part here is that Ethereum has to hold a green block. If that happens, the trend continues and we can continue running the entire cycle.”
The price of Ethereum is currently down 8.94% to $3,811. ETH began 2021 at $730, hit a mid-year peak in May of $4,182 before falling to a summer low of $1,795 in July. The token has since seen choppy upward price action but remains 422% higher for the year.
In comparison, Bitcoin grew 63.75% during 2021. BTC went from a starting point of $29,352, lurched to an April peak at $63,576 before crashing to a summer low of $29,971 in July.
The leading crypto fought its way to another new all-time high above $69,000 in November but has since tumbled to below $47,000 amid choppy price action. Currently, it’s down 8.74% to 48,065.
Van de Poppe concludes his Ethereum discussion by pointing out what recent project upgrades plus the upcoming rollout of Ethereum 2.0 could mean moving forward.
“Ethereum is the one to watch.
Potentially we are seeing an Ethereum cycle instead of a Bitcoin cycle.”
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Terra’s LUNA token hit an all-time high of $100 today.
LUNA’s bullish price action follows similar moves from Solana and Avalanche, two other Layer 1 projects.
The three tokens, collectively dubbed “SOLUNAVAX” by crypto traders, have soared during 2021.
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Amid ongoing hype for Layer 1 blockchains, Terra’s LUNA has hit $100 for the first time. The asset’s price action follows a similar trajectory to Solana and Avalanche, which have both soared in recent months.
Terra Hits $100
Terra is benefiting from the Layer 1 hype.
The stablecoin-focused blockchain is home to one of the fastest-growing DeFi networks, with a variety of popular apps including Anchor Protocol, Mirror Protocol, Terraswap, and Astroport. Its native token, LUNA, is currently leading a Christmas rally in the market. It hit $100 for the first time today after rallying over 50% in the last week. It’s since cooled off, trading at $96.53 at press time.
LUNA’s upward move comes amid a period of bullish momentum in the market following Bitcoin’s rebound from $45,700 to $51,200.
Its native LUNA token is leading the ongoing “Santa Rally” on Christmas eve. LUNA’s all-time high comes when the altcoin market is slightly recovering due to Bitcoin rebounding to $51,200 after dipping to $45700 earlier this week.
Source: TradingView
On Monday, LUNA broke prior resistance levels at around $75 on the daily timeframe. LUNA has since met psychological resistance at $100.
Several recent developments have served as catalysts for LUNA’s bullish momentum. While LUNA has risen, the total value locked on Terra has crossed $21 billion, helped in part by the Astroport exchange’s ongoing token lockdrop. Terra now holds the second highest total value locked in DeFi, trailing only Ethereum.
LUNA’s price trend has closely followed those of two other Layer 1 coins: Solana’s SOL and Avalanche’s AVAX. Both SOL and AVAX have also experienced a parabolic rally in the second half of the year, posting new all-time highs in November. Ethereum’s soaring gas fees, generous token incentive programs, and the market’s growing confidence in a multi-chain future can all explain the rise among Layer 1 coins.
Source: TradingView
While several Layer 1 networks have gained traction in recent months, Terra, Solana, and Avalanche have been three of the strongest performers in the final two quarters of the year. The trend has led several traders to coin the term “SOLUNAVAX” in reference to the market strength and rotations they have made between each coin.
Of the three, LUNA is the biggest gainer of 2021. According to data from CoinGecko, it was trading at $0.65 on Jan.1, which means it’s posted a 14,670% gain. Solana’s SOL has risen 7,800%, while Avalanche’s AVAX is up 3,300% year-to-date.
Still, all three coins have outperformed the two leading cryptocurrencies by some distance. Bitcoin is up around 76% this year, while Ethereum has jumped 446%.
Disclosure: At the time of writing, the author of this piece owned ETH, SOL, and other cryptocurrencies.
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