Fantom, NEAR Ride Layer 1 Boom Into 2022

Key Takeaways

  • Fantom and NEAR are hovering amid excessive demand for Layer 1 cash.
  • The current rise follows the SOLUNAVAX development that dominated the second half of 2021.
  • An upcoming Fantom undertaking involving Andre Cronje and Daniele Sestagalli could clarify FTM’s current rally.

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Fantom and NEAR are two of the newest Layer 1 cash to rally. 

Crypto Layer 1 Boom Continues 

Layer 1 hype isn’t useless but. 

Several good contract blockchains have seen their native tokens rally this week regardless of a decline amongst main belongings like Bitcoin and Ethereum. Two of the newest winners are Fantom and NEAR Protocol. 

FTM has jumped 15.5% within the final 24 hours, presently buying and selling at $2.88. NEAR, in the meantime, is up 16.1%, buying and selling at $16.91. The rise comes amid a bullish spell for each belongings: FTM is up 109.3% within the final 14 days, whereas NEAR has gained 97.7% in the identical interval. Other Layer 1 belongings like Oasis Network, Celo, and Harmony have additionally risen, although their beneficial properties have been much less vital. 

Interestingly, the favored DeFi builders Andre Cronje and Daniele Sestagalli have been teasing plans for a brand new Fantom-based product on Twitter over the previous couple of days, which can have contributed to Fantom’s sudden jolt. “What’s frog nation’s multisig deal with on Fantom? Asking for a good friend…” Cronje wrote Monday. The Yearn.Finance founder had previously confirmed that he was planning to “deploy a brand new experiment” on Fantom in January. Following Cronje’s tweet, Sestagalli warned his followers that “FTM season is coming.” Crypto fanatics usually seek advice from “seasons” as a result of velocity at which the house strikes: late 2021 noticed a so-called NFT season, a canine coin season, and a Metaverse season within the house of some months as merchants rotated between totally different niches within the crypto ecosystem. 

The “Frog Nation,” in the meantime, refers to a group that has fashioned round Sestagalli’s Abracadabra.Money, Wonderland Money, and Popsicle Finance, three revolutionary tasks that place emphasis on preserving decentralization in DeFi. Many have categorized this new suite of merchandise beneath a brand new motion referred to as “DeFi 2.0” alongside the likes of Tokemak and Olympus DAO. 

Following the newest rise, Fantom has a market cap of $7.3 billion, whereas NEAR’s is round $10.1 billion. Although each networks have seen substantial progress during the last 12 months, they had been overshadowed by Solana, Terra, and Avalanche—three Layer 1 networks which have exploded in current months due to speedy progress of their respective DeFi ecosystems. While Ethereum was weighed down by its costly gasoline charges all through 2021, many market members turned their consideration to the so-called “SOLUNAVAX” narrative, a reference to SOL, LUNA, and AVAX. Solana was the primary of the three to take pleasure in its personal “season” because it went parabolic, adopted by Avalanche, and at last Terra. 

While the market regarded shaky all through a lot of December, 2022 has kicked off with a number of decrease cap cash outperforming main belongings. Following a weak finish to 2021, each Bitcoin and Ethereum have each seen a slight tumble within the final 24 hours, pushing Solana, Terra, and Avalanche additional into the purple. However, based mostly on the current efficiency of Fantom and NEAR, it seems to be like many merchants are making one more Layer 1 rotation. 

Disclosure: At the time of writing, the creator of this function owned ETH, FTM, and a number of other different cryptocurrencies. Andre Cronje is an fairness holder in Crypto Briefing. 

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