Layer 1 crypto token push brings 200% gains in August

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Arcane Research recently released a crypto market update and explored the rise of Layer 1 tokens over the past 30 days. ETH Killer Season as a research firm and many others have called them.

Although the second largest cryptocurrency by market cap dominated the crypto market until a few weeks ago, its competitors have gained ground, breaking all resistance to new all-time highs.

As the chart below shows, some Layer 1 tokens in the crypto market saw massive rallies in August.

Solana (SOL) leads the standings with a rally of 221%, followed by Terra (LUNA) with a rally of 217%, Fantom (FTM) and Avalanche (AVAX), occupy the last places of the biggest Layer 1 tokens. with a 215% and 210% rally, respectively.

Source: Arcane Research

Binance Coin (BNB, 38%), Ethereum (ETH, 28%), and Polygon (MATIC, 22%), also made the cut with large profits over the same period.

The Binances crypto exchange token slowed down during its rally in late 2020. Similar to SOL, LUNA and AVAX, BNB surged from the DeFi boom as users migrated to the Binance Smart Chain ecosystem due to its high fees.

Solana seems to have taken part in its market share. Arcane Research has noted the increase in this token market from $ 9.5 billion to $ 35 billion in one month. SOL rose to 8th position in the top 10 cryptos by market capitalization.

The report attributes the appreciation of SOLs to its high throughput of 50,000 transactions per second with low fees compared to Ethereum. This made Solana attractive to developers.

As NewsBTC reported, some experts believe SOL will be one of the best performing crypto assets of 2021. Despite its rally of 221% in August, there appears to be room for further appreciation based on growing fundamentals of tokens.

Ethereum, king of crypto in the DeFi sector

DeFi and the increased adoption of the non-fungible token (NFT) industry could determine which crypto will dominate the market in the coming months.

In this sense, the Total Locked-In Value (TVL), a controversial measure due to its sketchy accuracy, in Solana recently surpassed the $ 2 billion mark.

However, Arcane Research claims that no Layer 1 network will be able to outperform Ethereum in terms of DeFi market share. DeFi Pulse data records TVL of $ 89 billion for all DeFi protocols.

The Ethereum network has supremacy in this sector, the most popular dApps are hosted on its ecosystem. Aave, MakerDAO, Curve Finance, Compound, Uniswap, Yearn Finance, SushiSwap.

Source: DeFi Pulse

These protocols have a Total Locked Value (TVL) ranging from $ 4.2 billion to $ 15.86 billion. The smallest DeFi protocol in Ethereum’s top 10 by TVL is double that held on Solana, according to Arcane Research:

ETH has experience of increasing transaction fees amid the NFT frenzy, possibly drawing more users to other channels. However, across the ecosystem, Ethereum remains the clear leader, and it seems unlikely that another protocol will dethrone Ethereum’s position in the near future.

At the time of writing, ETH is trading at $ 3,398. The second largest crypto by market cap has a profit of 5.2% on the daily chart.

ETH with moderate profits in the daily chart. Source: ETHUSD Tradingview

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