Solana, Phantom, NEAR Protocol Store winners in today’s cryptorally

What happened

It has been another incredible day in the world of cryptocurrency. In total, the crypto market has started the day in green, as the total value of all digital currencies remains above $ 1 trillion. This important psychological threshold was passed yesterday for the first time in more than a month.

To drive this sector higher was Phantom (FTM 16.95%), the biggest winner in today’s market. It gave an increase of 18.2% in the last 24 hours from kl. 9:30 ET. NEAR protocol (NEAR 5.66%) and Solana (SUN 8.91%) also saw impressive double-digit gains, with an increase of 13% and 11.3% over the same time frame, respectively.

This week’s rally among various top team 1 networks seems to be linked to newfound momentum around a date (finally) set for Ethereum‘s (ETH 0.48%) long-awaited merger. Layer 1 networks refer to basic blockchain projects, on which other decentralized applications can be built.

So what

Interestingly, Fantom, NEAR and Solana are each high-profile Layer 1 blockchain that many see as Ethereum competitors. Consequently, Ethereum’s benefits do not necessarily directly (or positively) affect these competing blockchain projects.

That said, many have pointed to the idea that liquidity tends to improve in the Layer 1 room after an Ethereum pump. This is because traders will often divert attention from Ethereum to other similar projects that may be next to see a lot of activity. It is an interesting choice, and one that is clearly giving results today.

Phantom, NEAR and Solana are projects that have utilized smart contract technology to enable much of the DeFi growth we have seen in the crypto world outside Ethereum. Ethereum is still a leader with a large margin in this area. But when it comes to alternatives, these projects are obviously prominent for traders to target in a market with bullish sentiment and strong upward momentum.

What now

The question many crypto investors have is how long this rally can continue. It is important to keep today’s impressive rally in context. In fact, it does not matter which Layer 1 crypto project we are talking about – they are all down (large) from the top. Consequently, many more days of double-digit gains will be needed to establish new peaks.

That said, in this bear market, there is one double-digit day higher at a time. This is a start. And whether that means the bottom is in or not is up to individual investors to discuss. Personally, I’m not so sure, but that’s what makes this whole investment game fun.