Why Layer 1 Altcoins Were on Fire This Week
The desire for the No. 1 cryptocurrency faded a bit this week, a phenomenon that benefited many altcoins. This has happened before to the point where it has acquired a term of convenience -- capital rotation.
When crypto-capital rotation occurs, typically it's the coins anchoring the long-established Layer 1 blockchains that immediately benefit. This week, we saw that play out in the rise of Cardano (CRYPTO: ADA), Avalanche (CRYPTO: AVAX), and Algorand (CRYPTO: ALGO). According to data compiled by S&P Global Market Intelligence, the trio rose a respective 15%, 33%, and 11% over the period.
For the uninitiated, "Layer 1" refers to the foundational blockchain in a network. It is the system that records transactions and stores them in what amounts to a publicly available digital ledger. The most famous example of this, not least because it is the first Layer 1 chain, is Bitcoin (CRYPTO: BTC).
Source Fool.com
