The Layer-One (L1) ecosystem has gained more attention in recent months as users discover new investment opportunities in Cosmos (ATOM), Fantom (FTM) and NEAR.
Much of the L1 region has struggled to regain momentum after the January market sell-off, where the price of bitcoin (BTC) fell below $34,000.
According to data from Delphi Digital, the only L1s to experience significant gains in price since BTC’s January 24 low include Terra (Luna), Avalanche (AVX) and Ethereum (ETH).
Terra Ecosystem Development
The price increase seen in LUNA was in large part due to the announcement of the Luna Foundation Guard, which raised $1 billion to create a bitcoin reserve for the ecosystem’s Terra USD (UST) stablecoin.
Terra also launched its second lockdown event and the Mars protocol helped drive demand for the LUNA token.
The $1 billion in reserves for UST was also a boon for Anchor Protocol (ANC), a Terra-based platform that is the main route for mining UST by pledging Luna or Ether. Anker also got an additional boost in its price after announcing that developers are in the process of integrating AVAX as a collateral option to create USTs.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $1.18 on January 28, the price of the ANC has risen 268% to a daily high of $4.35 on March 2, where it was found to be a Stopped at key resistance levels.
In addition to its integration with Anker, Avalanche has had several notable developments that have helped drive its development since late January, including integration with Wirex and the announcement that DeFi Kingdom will launch on the Avalanche network.
According to Delphi Digital, based on recent price performance, “AVX appears to be moving with a higher correlation to BTC relative to other L1s.”
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Osmosis and the Universe Ecosystem
Data from Delphi Digital shows that Osmosis, a decentralized exchange in the Cosmos ecosystem, has “outperformed other major peers by a considerable margin over the past few months.”
The strength shown by OSMO is due to the success of Cosmos, which was nearing 2021 as its “interoperable app-chain thesis” has finally begun to bear fruit in recent months.
Osmosis is now the largest decentralized exchange in the Cosmos ecosystem and supports 37 different IBC chains with $1.75 billion in total value locked in, according to data from DeFi Lama.
Osmosis also received a boost in its price and trading volume after the March 1 release of Interchain and Superfluid Staking, which allows Liquidity Providers (LPs) on the Osmosis DEX to earn staking rewards for assets for which they held liquidity. Has provided. First time users can do both staking and LP at the same time.
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