- Layer 1 coins Ethereum, Cardano, DOT, AVAX have yielded between 5% to 10% gains for holders since March 28.
- With Bitcoin trading sideways, Layer 1 coins and meme coins have witnessed a spike in their prices.
- Experts believe Layer 1 coins are likely to sustain their recent gains, with active development activity outpacing Layer 2.
Layer 2 assets dominated the narrative on crypto Twitter for months before Layer 1 coins made a comeback. Ethereum (ETH), Cardano (ADA), Polkadot (DOT) and Avalanche (AVAX) rank among the Layer 1 coins that yielded gains for holders since March 28.
The “alt season” narrative has emerged as a driver for gains in Layer 1 coins.
Also read: Is Shiba Inu ready to eat more zeroes with Twitter logo change?
Layer 1 coins: Ethereum, ADA, DOT, AVAX yield gains
Over the past few months the Layer 2 coins in the Ethereum ecosystem piqued the interest of crypto market participants. With Arbitrum airdrop and relevant announcements, there was a spike in demand for Layer 2 coins.
Bitcoin’s recent pullback and the “alt season narrative” have turned the spotlight towards Layer 1 coins in the crypto ecosystem. Ethereum, its alternatives Cardano, Solana and Avalanche rank among the smart contract networks whose tokens have yielded gains for holders.
Layer 1 coins
As seen in the chart above, the weekly gains of the Layer 1 coins are between 3% and 13%. Andrew Kang, a crypto analyst on Twitter commented on Bitcoin dominance losing its momentum and making way for capital rotation into altcoins, large market cap coins like the Layer 1 tokens in the chart above.
BTC dominance loses momentum
How Ethereum’s Shapella upgrade is key to altcoin gains
Miles Deutscher, a crypto analyst on Twitter noted that Ethereum is currently attempting to break out on the ETH/BTC chart. Deutscher considers this the beginning of capital rotation into Ethereum, ahead of the Shanghai upgrade scheduled for April 12.
ETH/USD and ETH/BTC price charts
If ETH shows sustained strength against Bitcoin, the expert considers it would fuel altcoin performance.
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