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When it comes to portfolio construction in crypto one must always be very informed about which coins to choose. Here are the top layer 1 coins to invest in 2022 – as this is the best generation of coins to accumulate.
Last updated Aug 3, 2022 at 11:38 PM
Posted Aug 3, 2022 at 6:00 PM
What are layer 1 coins?
Layer 1 aren't actually coins. Layer 1s and layer 2s are blockchains and these are just the tokens using that chain. The tokens on layer 1 blockchain are called layer 1 coins/tokens. So what are layer 1 blockchains? Layer 1 is the base layer for a crypto ecosystem. It’s a settlement layer of the blockchain that provides security.
Layer 1 blockchains are the core chains that have the infrastructure. A good blockchain must offer good security, decentralization, and speed. However, only two of these can be achieved in layer 1: this problem is called the blockchain trilemma. Ethereum has incredible security and is very decentralized in nature but it lacks speed. Likewise, Binance Chain is highly scalable and secure but lacks decentralization.
Here are some layer 1 coins you can invest in.
Ethereum is one of the leading layer 1 altcoins that is growing apace. Ethereum EVM provides blockchain developers advanced development tools to build. Ethereum’s native coin – ETHER – is one of the top coins to invest in for mid and long-term investments. Ethereum has a market cap of $208,711,967,106 and is ranked #2 with respect to trading volume. Ethereum’s dominance is near 18%, which means it takes 18% of all crypto investments.
Figure 1TradingView: Ethereum
Since its bottom of the current cycle at $883 on June 18th, Ethereum has gained over 100%. Since Ethereum has many use cases and there are hundreds of projects running on this coin with millions of transactions every day, it recovers fast to claim the local highs. Ethereum takes full advantage of the bullish market and never disappoints traders and investors.
Binance has built the largest cryptocurrency ecosystem and infrastructure since 2017. Building chains, exchanges, marketplace, coins, and an academy in just 5 years is a lot to achieve. Binance exchange is the #1 crypto exchange in trade volume and it is among the top exchanges to offer a wide range of crypto pairs to trade on. Binance has two chains: Binance smart chain and Binance Chain. The local coin of this ecosystem is Binance Coin or BNB.
BNB is used to run the whole Binance ecosystem as a fuel which adds to the use case of this coin. Also, the way it has surged in the last years is intriguing enough to attract buyers and investors to it. The BNB price today is $291.93. BNB is up 1.90% in the last 24 hours. The current CoinMarketCap ranking is #5, with a market cap of $47,099,414,684. It has a circulating supply of 161,337,261 BNB coins and a max. supply of 200,000,000 BNB coins.
Binance coin has stood against the bearish wave very well and gained over 60% after touching its bottom in the current bearish cycle. BNB has resistance at $300 first and then at $360.
Another layer 1 coin, Solana, has an adoption trajectory even better than that of Ethereum. When it comes to web 3 development, Solana is the developers’ best option after Ethereum.
Layer 1 chains Adoption – Monthly active developers
Solana uses the multi-node approach to perform simultaneous transactions to ensure the maximum throughput. The speed of the Solana chain never lets the network clog and thus Solana can charge minimal fees to perform transactions. Ethereum has a block time of 10s; Solana's block time is as low as 4 milliseconds.
The current CoinMarketCap ranking of Solana is #9, with a market cap of $14,749,505,679. It has a circulating supply of 346,027,109 SOL coins. Solana is slowly recovering to claim its highs again. Solana has a lot of potential to grow in the long term.
The above analysis gives editorial opinions, not financial advice. Trading cryptocurrencies involves risks. DYOR (Do Your Own Research) before investing.