Layer 1 Crypto Coins Took A Beating As Market Deleted $76B

The Layer 1 crypto coins are taking a heavy beating today after the market deleted $76 billion of its market cap as we can see further in today’s latest cryptocurrency news.

Layer 1 crypto coins like Fantom, Near, Cosmos, Solana, and others dropped points in the past 24 hours. Some of the Layer 1 crypto coins had a rough day with the market leaders like Near, Cosmos, and Terra dropping by around 5%. The leading smart contract platform Ethereum is also down by 3% and dropped from over $2,600to $2,500 with the damage to other protocols being much worse.

After the news that Andre Cronje will be leaving the industry as one of the most prolific developers and right after his announcement, FAntom Network dropped by over 12% in the past day to $1.40. Cronje and others played a huge role in building out the Fantom ecosystem with the latest project and decentralized exchange called Solidity which lift the total value of the projects on the network. Since the announcement, the money fled the network en-masse.

After Fantom, Near Protocol and Cosmos, both dropped by 5% while Solana got down around 5.8% and Terra and its UST token dropped by 4% after a bullish week. The lesser-known layer 1 networks in Kadena and Harmony also got down by up to 4% according to the data from CoinMarketCap. The layer 1 network can be considered as a sort of crypto base layer where various projects can be built. This kind of network often provides a scheme and tools to build NFT collections or money markets for users to park their stablecoins. Buying an NFT or depositing the cash into the money market costs fees which are denominated in the network’s native currency.

The users spend ETH to borrow on Aave rather than Aave’s native token but Ethereum and Bitcoin as the largest layer 1 networks also dropped. It is easier for developers to build on ETH than it Is on Bitcoin so many of the popular Layer 1 networks are direct competitors to Ethereum while trying to improve on transaction speeds and costs. The niche dropped valuable points over the past day like Ethereum. Though layer 1 cryptocurrencies faced the brunt of the actions and the damage spread across the broader market. Bitcoin as the largest crypto by market cap continues to struggle to gain above the $40,000 level. The coin is now trading at $38,200 which is down by 45% from its all-time high of $68,789.