Terra, Avalanche and Osmosis lead the L1 recovery while Bitcoin searches for support

As users look for investment opportunities in the Cosmos, Fantom (FTM), and NEAR (atOM), the layer-one ecosystem (L1) has been receiving increased attention in recent weeks.

Many of the L1 fields have struggled to regain their momentum following January’s market crash, when Bitcoin (BTC), price fell to below $34,000.

Performance of L1 tokens in terms of price since Jan. 24, Source: Delphi Digital

Delphi Digital data shows that since Jan. 24’s bottom, the only L1 to see a significant price increase has been Terra (LUNA), Avalanche(AVAX), and Ethereum (ETH).

Terra ecosystem growth

The Luna Foundation Guard’s announcement that it had raised $1Billion to create a Bitcoin reserve to support the ecosystem’s Terra USD stablecoin (UST), was a major factor in the price rise in LUNA.

Terra saw its second lockdrop event launch, and the Mars Protocol drove demand for LUNA tokens.

Anchor Protocol (ANC) also benefited from the $1 billion in UST reserves. This Terra-based platform, Anchor Protocol (ANC), is the main route for minting UST by pledging LUNA and Ether. Anchor received an additional boost in its price when it was announced that AVAX is being integrated by developers to create UST.

Cointelegraph Markets Pro and TradingView data show that ANC prices have risen 268% since Jan. 28 when they hit a low at $1.18. They then soared to $4.35 on March 2, where it was stopped at a major resistance level.

ANC/USDT 1-day chart. Source: TradingView

Avalanche’s integration with Anchor is not the only notable development that has helped it grow since January. Wirex was integrated and DeFi Kingdoms launched on the Avalanche network.

Delphi Digital claims that AVAX moves with a stronger correlation to BTC than other L1s, based upon its price performance.

Related: Which layer one protocols will be the best in 2022? Tune in now to The Market Report

Osmosis and The Cosmos Ecosystem

Delphi Digital data shows that Osmosis has outperformed all major counterparts over the past few months.

Comparison of OSMO/USDT performance with other cryptocurrencies Source: Delphi Digital

OSMO’s strength is partly due to Cosmos’s success, which was close to 2021. In recent months, its “thesis of interoperable apps-chains” has finally come to fruition.

According to data from Defi Llama, Osmosis is the largest decentralized exchange within the Cosmos ecosystem. It supports 37 IBC chains and has $1.75 Billion in total value.

Osmosis total value Source: Defi Llama

Osmosis saw a rise in its trading volume and price as a result of the release interchain and superfluid Staking on March 1. This allows liquidity providers (LPs) on Osmosis to also earn staking reward for assets they have provided liquidity for. It is the first time that users can simultaneously do both staking AND LP.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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