Ethereum, Solana, and Avalanche are among the assets led the market on Friday.
Key Takeaways
- Several Layer 1 chains were surging.
- Ethereum, Solana, and Avalanche were some of the top performing assets at the end of last week.
- As macroeconomic conditions were still uncertain, it may be too soon to call the current price movement the beginning of a recovery.
Several Layer 1 chains were rallying as the crypto market appeared to return to life.
Layer 1s Climb Higher
Layer 1 chains were leading the crypto market.
After dipping to their lowest levels in over six months, several Layer 1 chains were showing strong momentum.
Ethereum continued producing higher highs on the local timescale, reaching a price of $2,868 early Friday morning. The second-biggest crypto asset was trading at its highest levels since crashing over 35% in mid-January. Ethereum was quickly approaching the psychological price barrier of $3,000, which was likely to be the next big test for the asset.
Solana was another top performer, putting in an 11% gain late last week. Despite SOL falling 13.5% following the $322 million hack on one of the chain’s major bridges, the token showed a strong recovery. Other recent news, such as Solana Labs CEO Anatoly Yakovenko’s proposition to introduce a fee market on Solana, may have been acting as a bullish catalyst for the chain. Solana was trading at $105.55, up 29% from its January low of $81.41 at time of writing.
Not to be left behind, the Ethereum-compatible Layer 1 chain Avalanche was also retesting higher levels. The AVAX token rose a modest 8% on the day and appeared to be taking another shot at holding above its current resistance level of $70. Avalanche breached this price point three times in the past two weeks but was unable to hold onto its gains.
While Layer 1 chains were enjoying positive price action Friday, the wider crypto market still appeared to be at the whim of macroeconomic conditions. Bitcoin and Ethereum’s correlation to the U.S. stock market was at its highest level in over four years, as fears over the Fed’s proposed rate hikes loomed.
Elsewhere, tensions between the U.S. and Russian governments over a possible Russian invasion of Ukraine were also putting a damper on global markets, including crypto. With these unknown variables still in play, it’s likely too early to decisively call Friday's price action the beginning of a crypto market recovery.