Layer 3 tokens see double-digit losses dragged by Bitcoin price drop

Layer 3 tokens – blockchains that leverage Layer 2’s speed and Layer 1’s security – suffered a decline on the daily timeframe. The double-digit correction in Layer 3 token prices is likely catalyzed by Bitcoin price drop below $66,000 on April 5. 

Layer 3 tokens hit by Bitcoin-driven market correction

Bitcoin price dipped to a low of $65,977 on Friday, dragging down most of the altcoins along with it. In the past week, the asset has wiped out nearly 7% of its value, trading range bound between $71,000 and $64,500.

Layer 3 tokens Aavegotchi (GHST), Dream Machine Token (DMT), Degen (DEGEN), Orbs (ORBS), and Xai (XAI) suffered losses between 5% and 28% in their prices. As seen on CoinGecko, Orbs and Xai prices are down 12% and 18% on the weekly timeframe, respectively. 

Layer 3 tokens 

The Layer 3 token narrative has gained popularity as the class of tokens that prioritize the user while deriving speed from a Layer 2 chain and security from a Layer 1 chain, like Ethereum. The Layer 3 narrative has become mainstream in the ongoing cycle, however these assets have suffered a steep correction in response to Bitcoin’s drawdown and it remains to be seen whether these cryptocurrencies regain lost ground in the coming weeks.