The layer one (L1) ecosystem has received increased attention in recent months as users seek new investment opportunities in the Cosmos (ATOM), Fantom (FTM), and NEAR.
Following the January market sell-off, where Bitcoin (BTC) dipped below $34,000, much of the L1 field has struggled to regain its momentum.
According to data from Delphi Digital, since BTC bottomed out on Jan 24, the only L1 to see a noticeable increase in price includes Terra (MOON), Avalanche (AVAX) and Ethereum (ETH).
Growth of the Terra ecosystem
The price growth seen in LUNA was largely due to Luna Foundation Guard's announcement that it had raised $1 billion to form a Bitcoin reserve for the ecosystem's Terra USD (UST) stablecoin.
Terra also saw the launch of its second lockdrop event and the Mars Protocol helped drive demand for the LUNA token.
The $1 billion in reserves for UST was also a boon to the Anchor Protocol (ANC), the Terra-based platform that is the primary avenue for minting UST by promising LUNA or Ether. Anchor also got a further price increase after announcing that developers are in the process of integrating AVAX as a collateral option to build UST.
Data of Markets Cointelegraph Pro and TradingView shows that since hitting a low of $1.18 on Jan 28, ANC price has catapulted 268% to reach a daily high of $4.35 on Mar 2, where it stopped at a major resistance level.
In addition to its integration with Anchor, Avalanche has had several notable developments that have helped fuel its growth since the end of January, including an integration with Wirex and the announcement that DeFi Kingdoms will launch on the Avalanche network.
According to Delphi Digital, based on its recent price performance, โAVAX appears to move with a higher correlation to BTC relative to other L1s.โ
Related: Which Layer One Protocols Will Outperform in 2022? | Tune in now to The Market Report
Osmosis and the Cosmos ecosystem
Delphi Digital data shows that Osmosis, a decentralized exchange in the Cosmos ecosystem, has โoutperformed other major peers in recent months by a substantial margin.โ
The strength shown by OSMO is due in part to the success of Cosmos, which had a strong close of 2021 as its โinteroperable application chain thesis finally started to bear fruit in recent months.
Osmosis is now the largest decentralized exchange in the Cosmos ecosystem, supporting 37 separate IBC chains with a total locked value of $1.75 billion according to data by Defi Llama.
Osmosis also received a boost in its price and trading volume following the launch of superfluid and cross-chain staking on March 1, allowing liquidity providers (LPs) on the Osmosis DEX to also earn staking rewards for assets to ones that have provided liquidity, making this the first time users can place bets and LP at the same time.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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