Blockchain.com co-founder and CEO Peter Smith talked about Layer-1 altcoin projects. According to him, backing these Blockchain networks has brought huge profits to investors in the past. These spikes occurred even though none of the altcoins really threatened Ethereum’s crown. For those who don’t know, layer-1 networks are often described as the “Ethereum Killer”.
“Layer-1 altcoin projects have more profit potential”
Solana, Avalanche, and Near Protocol form first-wave layer-1 networks that have been described as the Ethereum Killer. The second wave, layer-1 networks include Aptos and Sui. Second-wave networks are based on the programming language Move, designed by Facebook developers. Sui developer Mysten Labs is reportedly in talks to raise hundreds of millions of dollars from investors. However, the team behind Aptos has raised $350 million this year in exchange for two raises. Still, Ethereum is the dominant altcoin for running very vibrant and decentralized businesses. In addition, Blockchain continues to work to use the network cheaper and make it more energy efficient. To this end, it is preparing to switch to the Proof-of-Stake consensus mechanism in September.
In the field of Layer-1, the competition is increasing day by day. According to Smith, it is no surprise that investors continue to tap into these altcoin projects. Because they still have the potential to prove highly profitable. “None of these altcoin projects came close to beating Ethereum,” Smith said in an interview. But they made a lot of money for investors,” he said. The reason why people support layer-1 projects is pretty obvious, according to Smith. The expert said, “They don’t care if they challenge Ethereum. They want to make eye-watering gains in a short time.” He also mentions that layer-1 investors are moving to new projects. Accordingly, investors are switching from old Ethereum killers like Solana, Avalanche to new networks like Aptos.
Investors switch to new projects
Between the start of 2021 and November of that year, the market cap of Solana’s native token SOL rose from $100 million to nearly $80 billion. However, it has since dropped to about $15 billion. Early backers of the project would have been supremely upset if they had typically bought altcoins instead of Proof-of-Stake, even cashing out some of their top holdings. However, Smith questions the true utility of these Layer-1 altcoin networks. According to him, neither of these networks has so far revealed any development that proves they are permanent. Also, with the Ethereum Merge upgrade, most of them will no longer be needed. As Cryptokoin.com reported, the Ethereum network will transition to Proof-of-Stake with the Merge upgrade.
Top 20 Layer-1 altcoins
- Ethereum
- bitcoin
- polkadot
- cosmos
- Binance Coin
- Near Protocol
- Avalanche
- wither
- moonbeam
- Acala
- Algorand
- waves
- Tezos
- celo
- Zcash
- Litecoin
- Tron
- fetch.ai
- cardano
- Elrond
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