Layer 1 Crypto 2022: Terra LUNA, Tezos XTZ, Cosmos ATOM (Ethereum killer news) | Crypto News Today

Layer 1 Crypto 2022: Terra LUNA, Tezos XTZ, Cosmos ATOM (Ethereum killer news) | Crypto News Today
2 min read
19 February 2022

In the fast-growing world of smart contracts it’s no longer just about Ethereum. Alternative layer one smart contract platforms are catching up fast, and new investors are betting that these chains are going to outperform the market. What’s a layer one and why should you care?

If you want to know where the growth is going to be, all you need to do is follow the money. That’s never been easier to do than now, thanks to some data from the digital asset investment company CoinShares. According to their statistics, new investors are showing a lot of interest in alternative layer one blockchains.  In a recent blog post CoinShares wrote, quote, “Recently created altcoin investment products, Terra, Tezos and Cosmos all saw inflows totaling $2.2 million, $0.9 million and $0.6 million respectively.” Furthermore, “Blockchain equity investment products saw the largest flows since mid-December with inflows totaling $69 million last week.”

In relative dollar terms these inflows are smaller than the investments we saw in 2021. However, even if the investments aren’t as large as we’d like, it’s still encouraging to see money going to new projects with the greatest potential for growth. The cryptocurrency analyst Altcoin Sherpa has pointed out that Near, Terra and Fantom are all trading above their 200-day exponential moving averages, and are showing bullish strength in a stagnating market. 

Ethereum has a first-mover advantage, however, these other protocols could easily outperform the market since they have more room for growth. Cosmos is also a good bet since the Vega update went live in December and introduced a series of major upgrades to the network. 

According to Cosmos’s blog, quote, “The updates will also serve to avoid consensus errors, and improve efficiency through features like fee and voting delegation. The Vega upgrade is essential to enhance the performance of the Cosmos Hub and ensure that future upgrades occur seamlessly.” The Interchain Foundation also just released interchain accounts on Cosmos, which will further enhance the protocol’s ability to interface with other blockchains. Even though prices are down right now there’s a lot of work being done behind the scenes and these blockchain protocols could end up doing very well in 2022.  

Jacob Enderson 3633
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