Key points to remember
- Fantom and NEAR are soaring amid high demand for Layer 1 coins.
- The recent increase follows the SOLUNAVAX trend which dominated the second half of 2021.
- An upcoming Fantom project involving Andre Cronje and Daniele Sestagalli could explain the recent FTM rally.
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Fantom and NEAR are two of the last pieces in Layer 1 to rally.
The crypto layer 1 boom continues
The Layer 1 hype is not dead yet.
Several smart contract blockchains saw their native tokens rally this week despite a drop in major assets like Bitcoin and Ethereum. Two of the latest winners are Fantom and NEAR Protocol.
FTM has jumped 15.5% in the past 24 hours, currently trading at $ 2.88. NEAR, meanwhile, is up 16.1%, trading at $ 16.91. The rise comes in the midst of a bullish period for both assets: FTM is up 109.3% in the past 14 days, while NEAR has gained 97.7% in the same period. Other Layer 1 assets like Oasis Network, Celo, and Harmony also rose, although their gains were smaller.
Interestingly, popular DeFi builders Andre Cronje and Daniele Sestagalli have been teasing plans for a new Fantom-based product on Twitter over the past few days, which may have contributed to Fantom’s sudden shake-up. “What is Frog Nation’s multisig address on Fantom?” Ask a friend… ”Cronje wrote Monday. The founder of Yearn.Finance had previously confirmed that he was planning to “roll out a new experience” on Fantom in January. Following Cronje’s tweet, Sestagalli warned its subscribers that “the FTM season is coming”. Crypto enthusiasts often refer to “seasons” because of the speed at which space moves: the end of 2021 saw a so-called NFT season, a season of dog coins, and a season of metaverse. within a few months as traders rotated between different niches in the crypto ecosystem.
Soon you will see how the Frog Nation ecosystem works in tandem. I think how quickly we can organize the perfect launch. ️ What will you choose? $ FTM the season arrives DYOR accordingly.
– Daniele (@danielesesta) January 3, 2022
The “Frog Nation”, meanwhile, refers to a community that has formed around Abracadabra.Money, Wonderland Money and Popsicle Finance of Sestagalli, three innovative projects that focus on preserving decentralization in Challenge. Many have classified this new suite of products into a new movement called “DeFi 2.0” alongside Tokemak and Olympus DAO.
Following the latest hike, Fantom has a market cap of $ 7.3 billion, while NEAR’s is around $ 10.1 billion. Although both networks have experienced substantial growth over the past year, they have been eclipsed by Solana, Terra and Avalanche.—Three Layer 1 networks that have exploded in recent months thanks to the rapid growth of their respective DeFi ecosystems. As Ethereum was weighed down by its expensive gas costs throughout 2021, many market players turned their attention to the so-called ‘SOLUNAVAX’ story, a reference to SOL, LUNA and AVAX. Solana was the first of the three to enjoy her own ‘season’ as she went parabolic, followed by Avalanche and finally Terra.
While the market looked fragile for much of December, 2022 kicked off with several small cap coins outperforming major assets. After a weak end in 2021, Bitcoin and Ethereum both experienced slight drops in the past 24 hours, pushing Solana, Terra and Avalanche further into the red. However, based on the recent performance of Fantom and NEAR, it looks like a lot of traders are doing another Layer 1 rotation.
Disclosure: At the time of writing, the author of this feature owned ETH, FTM, and several other cryptocurrencies. Andre Cronje is a shareholder of Crypto Briefing.
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