Layer 1 Tokens Plummet as Crypto Market Dips

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A number of Layer 1 tokens have seen vital losses in the present day as Bitcoin retraces. 

Layer 1s Expertise Pullback 

After a month of meteoric good points and new all-time highs, Layer 1 tokens look like correcting.

A few of the largest Layer 1 blockchains have plummeted over the previous 24 hours as the broader crypto market continues to development decrease.

Layer 1 chart
Chart displaying SOL (blue), FTM (orange), AVAX (cyan), and LUNA (yellow). Supply: TradingView

One of many largest gainers over the previous month, Fantom, has additionally seen probably the most violent pullback. The token registered a brand new all-time excessive of $1.92 final week however has since retraced over 33% to $1.25. Whereas the FTM token has recovered barely, it’s nonetheless down greater than 16% within the final 24 hours.

Solana has additionally been hit onerous. Like Fantom, peak euphoria drove up SOL token’s worth to an all-time excessive of $213.47 final week, but it surely’s since skilled a pointy pullback. Solana is at present down 12% in the present day, buying and selling at $153.77.

Avalanche (AVAX) and Terra (LUNA) have fared higher resulting from bullish news driving up costs over the weekend however have nonetheless registered double-digit losses. Each tokens are down over 13% respectively however are buying and selling greater than final week when Fantom and Solana made new all-time highs.

With no main bearish information for Layer 1s, over-exuberance available in the market and Bitcoin trending decrease are prone to clarify the drop. It’s a well-established phenomenon that when Bitcoin falls, different tokens are hit tougher, and in the present day looks like no exception (Ethereum, the second-largest cryptocurrency by market cap that usually follows Bitcoin in worth motion, has additionally dipped in the present day). The world’s largest cryptocurrency is down 3.25% over the past 24 hours, buying and selling at round $44,600 on the time of writing.

Disclaimer: On the time of penning this characteristic, the writer owned BTC, ETH, and a number of other different cryptocurrencies. 

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