Investors’ interest in alternative Layer 1s, or blockchain networks other than ETH and BTC, peaked in 2021. They were termed Ethereum killers because they sought to outperform the original smart contract platform in terms of speed, cost, and efficiency.
The two cornerstones of blockchain are DeFi and Web3 capabilities, without which most chains will struggle to attract investors. Investors who have already pioneered in this field in their own unique ways are now seeking to strengthen their foundations, as evidenced by the efforts of layer 1 and layer 2 projects.
Users and investors flocked to Polygon, Solana, and Avalanche, sending their token prices rising and locking in billions of dollars in cumulative value (TVL). They were instrumental in propelling decentralized finance forward. Let’s take a look at some of the tokens to watch for as the bull market resumes and investor confidence rises.
Ethereum (ETH)
Ethereum’s Merge event has been repeatedly postponed. Vitalik Buterin, the founder of Ethereum, has announced that the event will take place in August. Buterin confirmed the report. There may be some hiccups during the procedure. Ethereum, on the other hand, will switch from proof-of-work to proof-of-stake in the summer of 2022.
According to sources, Buterin told the Web 3.0 ETH Developers Summit attendees that the Ethereum Merge is the “most important event on the cryptocurrency development agenda for 2022.” Preston Van Loon, an Ethereum lead developer, stated that August will be the month of total integration. Let us look at the ETH price
On May 28, ETH bounced off a critical support level of $1,700. This suggests that bulls are aiming to resume an upward relief surge. Ethereum may retest or maybe touch the $2260 price level in the next few days. The next logical resistance level will be $2684 if ETH manages to soar above the $2260 price level.
However If sellers continue to push the price lower, we may expect to touch the demand zone between $1691 and $1297 in a matter of days/weeks. After plummeting for several months, the market is currently on the rebound.
Polygon (MATIC)
Tether continues to expand its reach across the cryptoverse by launching the USDT stablecoin on the Polygon (MATIC) network. USDT is now used most frequently by Tron and Ethereum, but Polygon’s liking for Ethereum and low fees could see it eat into Tron’s market dominance.
Polygon has also unveiled a new educational series geared toward the developer community. It will be shown on Polygon’s YouTube channel. Polygon Academy is a free online school that teaches developers the fundamentals of Ethereum blockchain and smart contracts. Polygon has established the Terra Developer Fund to assist projects that have been harmed as a result of the LUNA catastrophe. Let us look at the MATIC price
The MATIC token is currently trading at $0.66, up over 40% from its low of $0.475 earlier this month. The coin’s market capitalization exceeds $4.3 billion. The total value locked (TVL) has reduced to $2.6 billion, according to data. If the support level of $0.614 holds, a bullish breakthrough is likely to occur soon, with MATIC retesting the $0.79 price level.
If this level of resistance breaks, the next important resistance level to watch is around $1. Since MATIC has dropped more than 50% in the last 30 days, a retest of the $0.79 price level is quite likely.
Avalanche (AVAX)
Yuga Labs’ Otherside metaverse game and ApeCoin have been proposed to be moved to Avalanche by Ava Labs. AVAX token can now be utilized as staking collateral assets on Binance Loans, a cryptocurrency loan platform. However In less than six weeks, AVAX has lost three-quarters of its value. Since early December, its TVL has dropped by more than half, to $4.12 billion from $13.6 billion. Let us look at the AVAX price
On the daily chart, AVAX is declining. Bulls, on the other hand, are attempting to rescue the token and defend the $21.14 support level. It is likely to retest the $39.66 resistance level if current support level holds. AVAX must also cross over $54.35 for a short-term bullish bias to be successful in countering downtrend momentum. It’s realistic to assume that AVAX is currently trading at a significant discount, and it’s a token to keep an eye on as the bull market resumes and investor confidence returns.
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