Alternative layers 1 don’t seem to outperform the original asset
Some cryptocurrency experts are calling the first half of 2021 the “L1 era” as the number of Ethereum competitors has begun to surge up, with more people choosing alternative networks due to Ethereum’s inability to process a large number of transactions without a 100-200% fee increase. But after various L2s hit the market, Ethereum “killers” seem to struggle.
Sol’s market performance
With the popularity of NFTs and decentralized finance declining, alternative chains have taken the same path as Ethereum by losing some of their value. According to market data from Tradingview, the Solana bullrun was almost fully correlated with the rise and fall of the NFT industry.
Unfortunately for those who believe in SOL as an “Ethereum killer,” the coin has replicated its “big brother’s” market performance and lost approximately 30% of its value since the ATH in November.
Avax loses 20% after reaching top 10 on CoinMarketCap
Another Layer 1 alternative network has failed to maintain its value during the correction in the global cryptocurrency market and, like Ethereum, has lost around 20% of its value in the past two months.
But unlike Solana, Avax has shown the first signs of recovery slightly earlier, with 14% price growth in the last three days. Compared to other L1s, Avax showed one of the best performances during the market sell-off with a 50% rally in the middle of December.
At the time of going to press, Avax is trading at a profit of 1.8% and is continually moving up the local uptrend as a competitor. Solana is in continuous decline with a performance of -1.8% during the day.
