The layer-one (L1) network got a lot of interest in recent months. Consumers look for fresh investment options in Cosmos (ATOM), Fantom (FTM), and NEAR.
After the market sell-off in January, the value of Bitcoin (BTC) fell below $34,000. Most of the L1 platforms in the field failed to restore their pace.
As per Delphi Digital data, ever since BTC bottom on January 24, the only L1 to see a significant price increase are Terra (LUNA), Avalanche (AVAX), and Ethereum (ETH).
Terra Ecosystem Growth
The price increase in LUNA was mostly attributable to the Luna Foundation Guard’s revelation. It had acquired $1 billion to build a Bitcoin reserve for the network’s Terra USD (UST) stablecoin.
Terra also witnessed the start of its second lock drop program. The Mars Protocol aided in driving LUNA token interest.
The $1 billion in UST holdings was also beneficial to Anchor Protocol (ANC). Anchor Protocol is a Terra-based network that is the primary means of minting UST by offering LUNA or Ether. Anchor’s price went up. This was after the announcement that developers were on the verge of incorporating AVAX as a security alternative for generating UST.
According to data from Cointelegraph Markets Pro and TradingView, the value of ANC has risen 268 percent. This was since it hit the bottom of $1.18 on Jan. 28 to a daily high of $4.35 on March 2, where a strong resistance level blocked it.
Apart from its connection with Anchor, Avalanche has also had many major events since late January that have contributed to its success. Such as a merger with Wirex and the revelation that DeFi Kingdoms will debut on the Avalanche platform.
As per Delphi Digital, AVAX appears to be moving with a stronger correlation to BTC than other L1s. This is judging by its latest price behaviour.
Osmosis and Cosmos Ecosystem
According to Delphi Digital data, Osmosis has surpassed other prominent competitors by a significant gap over the last few months.
OSMO’s performance owes in part to the performance of Cosmos. It had a successful end to 2021. Its hypothesis of interoperable app chains has eventually begun to bear fruit in recent months. As per Defi Llama data, Osmosis is presently the largest decentralized exchange in the Cosmos network. It has 37 distinct IBC chains with $1.75 billion in total value locked.
The March 1 rollout of interchain and super fluid staking also boosted Osmosis’ value and traded activity. This type of staking enables liquidity providers (LP) on the Osmosis DEX to receive staking benefits for the assets they supply liquidity for. This type of staking enables consumers to participate in both staking and LP at the same time for the very first time.
