The Tier 1 (L1) ecosystem has received increasing attention in recent months as users look for new investment opportunities in Cosmos (ATOM), Fantom (FTM) and NEAR.
After a massive market sell-off in January that saw the price of Bitcoin (BTC) drop below $34,000, much of the L1 field has struggled to regain momentum.
L1 coin price advantage from January 24th. Source: Delphi Digital
Since BTC’s January 24 low, the only L1s to achieve significant price gains include Terra (LUNA), Avalanche (AVAX) and Ethereum (ETH), according to Delphi Digital data.
Terra. Ecosystem Growth
The rise in prices seen on LUNA was largely due to the Luna Foundation Guard’s announcement that it had raised $1 billion to build the Terra USD (UST) bitcoin stablecoin ecosystem reserve.
Terra also launched a second lock event, and the Mars protocol helped boost demand for the LUNA token.
The $1 billion ground treasury reserve has been a boon for Anchor Protocol (ANC), a Terra-based platform that is the main way ground treasuries are formed through the promise of LUNA or Ether. Anchor has also received an additional price increase after announcing that developers will integrate AVAX as an additional option for floorstanding cabinets.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $1.18 on Jan. 28, the price of ANC has jumped 268% to reach a daily high of $4.35 on March 2, stalling at a significant resistance level.
ANC/USDT 1-day chart. Source: Trading View
In addition to the integration with Anchor, there have been several notable developments in Avalanche that have helped drive growth since late January, including the integration with Wirex and the announcement of the launch of DeFi Kingdoms on the Avalanche network.
According to Delphi Digital, based on recent price action, AVAX appears to be moving with a higher correlation with BTC than other L1s.
Related: Which layer 1 protocols will surpass in 2022? | Join Market Review Now
Osmosis and the ecosystem of the universe
Data from Delphi Digital shows that Osmosis, a decentralized exchange in the Cosmos ecosystem, has “outperformed its other major competitors by a significant margin in recent months.”
OSMO/USDT performance relative to other cryptocurrencies. Source: Delphi Digital
The strength that OSMO has shown is partly due to the success of Cosmos, which was so close to 2021 that the “cooperating application flows thesis” has finally been implemented in recent months.
Osmosis is currently the largest decentralized exchange in the Cosmos ecosystem and maintains 37 separate IBC chains with a total value of $1.75 billion locked, according to Defi Llama.
Total blocked osmosis value. Source: Devi Lama
Osmosis also increased its price and trading volume following the on-chain launch and ultra-liquid linking on March 1, allowing liquidity providers (LPs) on the Osmosis DEX to also earn stake rewards on assets for which they offered liquidity. thus, for the first time, users can create both staking and LP at the same time.
