Layer 1 season it seems. As others have said, we’re seeing a lot of rotation of capital from L1 to L1. Why does this happen? i.e SOL-LUNA-AVAX-FTM -Better opportunities on new DeFi protocols (better APY) -$ incentives (300M for FTM) -being earlier=better upside
P.S updating this idea sooner or later.
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Why buy some dog token on AVAX when you can ape into the new one on FTM? Why buy JOE when you can buy the new sushi on FTM?(i heard they’re some infrastructure kinks to work out but yeah). This rotation is no different from any other market cycle in crypto.
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we’ll probably see this type of reaction become less relevant(i.e Elon’s doge tweets had weaker and weaker effects) but the $ should probably keep flipping around. luckily a lot of these are safer than rotations w. BSC shitcoin because they’re well established chains.
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with that being said this is bound to be many scams/crazy opportunities on these new L1 markets. wouldn’t surprise me to see something like ATOM or another L1 explode here soon. it has yet to be determined if the building on these newer chains such as AVAX would be sustained or not.
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or if it’s just a hype cycle where we’d see some $ come in/flip projects get built and then abandoned. still lots of opportunities out there. Being ready and learning bridges is important if you want to play this game. Stay SAFU.