Layer 1 Tokens Plummet as Crypto Market Dips

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.

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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