It’s general knowledge that the crypto market hasn’t been at its best since last December, with several volatile fluctuations. Even tokens of prominent layer 1 protocols aren’t spared, as they reportedly shed about $76 billion combined in the last day.
Cryptocurrencies native to Layer 1 networks, such as Fantom and Solana, declined 5% in the last day. Leading DeFi platform Ethereum also took a beating, falling by about 3% from $2.6k to $2.5k. Obviously, this decline massively impacted other tokens.
The worst-hit cryptocurrency was Fantom, which fell by over $12% in the last day. Experts think the decline was hugely influenced by the resignation of a renowned DeFi developer Andre Cronje.
Andre Cronje played a primary role in the development of Fantom over the years, releasing defining projects that put the ecosystem amongst top Layer 1 networks. However, his announcement took a toll on the platform, resulting in the massive loss of funds.
More Bullish Results Recorded
Cosmos and Near also lost 5% in the market, while Terra and Solana dropped 4% and 5.8% on the last day. Moving to the other less prominent L1 protocols, Kadena lost 4.6%, while Harmony shed its value by 4.3% in twenty-four hours.
Layer 1 networks are the foundations on which layer 2 projects are built. L1 networks, as famously called, are blockchains. They provide the infrastructure to build DeFi projects.
An example of projects built on L1 is NFTs. NFTs built on Solana or Ethereum will use SOL or ETH as native cryptocurrency. Ethereum and Bitcoin are the most profound L1 networks. However, developers find it more straightforward and convenient to create projects on Ethereum, but it isn’t even the best.
The likes of Solana and Cardano have sprung up as competitors. So, Ethereum won’t wear the crown for long. Moreover, these networks offer better transaction speeds at a significantly lower cost.
Bitcoin Still Down
While digital assets native to L1 chains are bearish, the effect has moved to other cryptocurrencies in the market. O.G coin BTC still struggles to gain momentum. The crypto failed to break the psychological level of $40k and currently trades at $38.2k. The last time the flagship crypto went past $50k was last November when it attained $68k.
As the Russia-Ukraine war rages on, experts are skeptical of an imminent bullishness, but they aren’t ruling anything out just yet. Additional donations in BTC and other digital assets to Ukraine could elevate the market from the red zone.