Layer 1 coins Ethereum, Cardano and DOT make massive moves, riding on alt season gains?
- Layer 1 coins Ethereum, Cardano, DOT, AVAX have yielded between 5% to 10% gains for holders since March 28.
- With Bitcoin trading sideways, Layer 1 coins and meme coins have witnessed a spike in their prices.
- Experts believe Layer 1 coins are likely to sustain their recent gains, with active development activity outpacing Layer 2.
Layer 2 assets dominated the narrative on crypto Twitter for months before Layer 1 coins made a comeback. Ethereum (ETH), Cardano (ADA), Polkadot (DOT) and Avalanche (AVAX) rank among the Layer 1 coins that yielded gains for holders since March 28.
The “alt season” narrative has emerged as a driver for gains in Layer 1 coins.
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Layer 1 coins: Ethereum, ADA, DOT, AVAX yield gains
Over the past few months the Layer 2 coins in the Ethereum ecosystem piqued the interest of crypto market participants. With Arbitrum airdrop and relevant announcements, there was a spike in demand for Layer 2 coins.
Bitcoin’s recent pullback and the “alt season narrative” have turned the spotlight towards Layer 1 coins in the crypto ecosystem. Ethereum, its alternatives Cardano, Solana and Avalanche rank among the smart contract networks whose tokens have yielded gains for holders.
Layer 1 coins
As seen in the chart above, the weekly gains of the Layer 1 coins are between 3% and 13%. Andrew Kang, a crypto analyst on Twitter commented on Bitcoin dominance losing its momentum and making way for capital rotation into altcoins, large market cap coins like the Layer 1 tokens in the chart above.
BTC dominance loses momentum
How Ethereum’s Shapella upgrade is key to altcoin gains
Miles Deutscher, a crypto analyst on Twitter noted that Ethereum is currently attempting to break out on the ETH/BTC chart. Deutscher considers this the beginning of capital rotation into Ethereum, ahead of the Shanghai upgrade scheduled for April 12.
ETH/USD and ETH/BTC price charts
If ETH shows sustained strength against Bitcoin, the expert considers it would fuel altcoin performance.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
