Layer 1s Transitioning to Layer 2
From 2021 to 2022, Layer 1 blockchain platforms like Ethereum experienced significant congestion and high transaction costs, largely due to their Proof of Work (PoW) mechanisms. This led to slow transaction speeds and operational inefficiencies. In response, several new Layer 1 projects emerged, aiming to outperform and replace Ethereum by offering better performance and scalability.
However, the launch of Ethereum 2.0, which transitioned Ethereum from PoW to Proof of Stake (PoS), significantly altered the competitive landscape. Post-upgrade, it became evident that few, if any, Layer 1 platforms could rival Ethereum’s enhanced capabilities. By 2023, a notable shift occurred: many projects began transforming their models from Layer 1 to Layer 2 to leverage Ethereum’s robust ecosystem rather than compete against it directly.

Today, Ethereum retains a dominant position in the market. Transitioning to becoming Layer 2 solutions for Ethereum seems to be a more strategic move than directly competing with the Ethereum platform.

#layer1layer2 #Layer2Coin

$ADA

Last month’s general market decline has significantly impacted Cardano’s #adausdt price, which is now trading at $0.37 after witnessing an 18% drop over the past 30 days. On-chain data reveals that this price dip has prompted some of Cardano’s biggest holders to scale back their trading activities.
Cardano Whales Seek to Reduce Exposure
Cardano's ADAUSDT has experienced a notable decrease in large transaction volume over the past month. Specifically, the daily count of ADA transactions worth between $1 million and $10 million has dropped by 33%. Similarly, transactions valued at $10 million or more have seen a 24% decline over the same period.
A reduction in large transaction volume indicates a significant decrease in big trades for the asset, often reflecting a shift in investor sentiment from positive to negative. This reluctance to trade may be due to various factors, with changing market sentiment being the most significant.

Weighted Sentiment Confirms Negative Outlook
An assessment of ADA’s weighted sentiment—a metric tracking the positive and negative mentions of an asset on social media—confirms the bearish outlook. At press time, the weighted sentiment value stands at -0.58, indicating a general feeling of negativity among those discussing the asset. A negative weighted sentiment typically precedes a continued decline in an asset’s value, as investors hesitate to trade, leading to decreased demand and subsequent price drops.
Technical Indicators Signal Further Decline
On a daily chart, several key technical indicators highlight the decline in ADA's demand among market participants. The Relative Strength Index (RSI), which measures an asset’s overbought and oversold conditions, has fallen below the neutral line of 50, currently sitting at 34.12. This value indicates that ADA is approaching oversold territory, with selling pressure outweighing buying activity.

Additionally, the Directional Movement Index (DMI) shows increased selling activity since June 12, with the positive index (blue) resting below the negative index (red). This setup signals a bearish market, confirming significant selling pressure.
ADA Price Prediction: Further Losses or Potential Rebound?
If the sell-offs continue, ADA’s value may dip to $0.35. However, a shift in sentiment from negative to positive could spark increased buying pressure, potentially driving the price up to $0.41.

Investors are closely monitoring these indicators to gauge the next move, with market sentiment playing a crucial role in ADA's price trajectory. As the market continues to evolve, the coming weeks will be critical in determining whether ADA can rebound or if further losses are on the horizon.
$CFX $SOL


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Jul 4, 2024

According to U Today, The cryptocurrency market has been experiencing a significant downturn, leading to massive liquidations and sharp declines in prices. XRP, the seventh-largest cryptocurrency by market capitalization, has not been immune to this sell-off. Over the past 24 hours, XRP’s price has fallen by 6.15%, trading at $0.4517. Despite the bearish market conditions, XRP has seen a remarkable 63% increase in trading volumes, with over $1.55 billion worth of XRP changing hands according to CoinMarketCap data. This surge in trading activity reflects a growing interest in XRP from both buyers and sellers navigating the market’s heightened volatility.
$OM

This surge in trading volume occurs amidst a broader context of market fear and opportunism. As the total liquidations across various digital assets reach $321 million, traders are reacting in diverse ways. Some are liquidating their positions to prevent further losses, while others are seizing the opportunity to accumulate assets at lower prices. XRP's increased trading volume suggests it is attracting significant attention during this period of market instability, potentially positioning itself as a focal point for traders seeking to capitalize on the price fluctuations.
$ZK

Looking ahead, XRP’s price movements are likely to be closely watched by the market. The immediate support levels are between $0.41 and $0.46, where bulls are expected to defend vigorously to prevent further declines. On the upside, the critical resistance level to monitor is the 50-day Simple Moving Average (SMA) at $0.503. If buyers can push XRP above this level, it could signal the start of a strong recovery towards the 200-day SMA at $0.554 and eventually the $0.57 mark. Traders and investors should keep a close eye on these key levels as they navigate the current market conditions.
$XRP

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