Layer 3 tokens see double-digit losses dragged by Bitcoin price drop
- Bitcoin price plunged to a low of $65,977 on Friday, triggering a correction in most altcoins.
- Layer 3 cryptocurrencies, Aavegotchi, Dream Machine Token, and Degen noted double-digit declines on Friday.
- Orbs and Xai prices wiped out their weekly gains on April 5.
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.
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.
