How to avoid mistakes and make (even more) profits with the alt-L1’s narrative

In the last bull-run, alt-L1’s like Solana, Avalanche & Fantom heavily outperformed the rest of the market in terms of price appreciation and VC funding.

What has been changed from 2021 to today?

Nothing.

Let’s have a look below at the top ecosystems’s performance of the last 6 months:

• Bitcoin (+37.5%)

• Ethereum (+18.7%)

• Top alt-L1s (+131.16%) 🏆

  • Solana (+269.8%)

  • Cardano (+51.4%)

  • Avalanche (148.8%)

  • Aptos (83.7%)

  • NEAR Protocol (102.1%)

• Top L2s (+70.6%)

  • Polygon (+1.3%)

  • Optimism (166.0%)

  • Arbitrum (44.6%)

• DeFi (+58.76%)

  • Uniswap (+7.0%)

  • Lido (+50.1%)

  • dYdX (+130.3%)

  • MakerDAO (+80.9%)

  • Aave (25.5%)

But the big question is…

Is this current outperformance in price performance related to improving fundamentals?

According to our monthly analysis, many of these L1’s have grown in fundamental metrics like daily users, TVL and daily transactions.

However, it is evident that several of these have recently seen a significant greater appreciation than fundamental growth.

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Our view

Historically, alt-L1’s perform incredibly well when the market is greedy.

But now the Fear & Greed Index is at a neutral level (lowest level since October ‘23), and I believe alt-L1’s valuations are still not that attractive.