Nothing like waking up on a Monday morning and getting hit with “What is an L1 Protocol?”. Yeah, sorry about that. To keep your morning cup of coffee from turning into a cold brew, L1 is nothing more than the underlying blockchain architecture from which all things in the crypto run. The obvious examples here are Bitcoin and Ethereum. However, there are well over 100 useable L1 Blockchains out there and they are all competing for usage. Ethereum is the current king.
Why Do You Care?
Well, the reason is simple. Any knowledge in this space that can help give you an edge in your trades is always worth taking the time to learn. If we are aware that there is an L1 War happening, then we can be on the lookout for L1 Protocols and what they have to offer so we can be better prepared fundamentally for what trades look the best.
This is where AVAX comes into play.
We have talked about AVAX a lot recently and the Chart will tell you why. AVAX has been consistently creating and breaking new ATHs – Once in September, once in October and now one more time in November.
AVAX is also a very powerful and very strong L1 protocol – currently, AVAX is among only a very small number of Chains that can handle 4000+ TPS with a confirmation under 30 seconds. This type of data attracts long-term investors that bring with them smart money that helps propel these chains into 40-4000% gains.
What's Hot in the AltCoin World?
Let’s take a look at some AltCoins that are worth your time to pull up the chart.
LRC: Loopring’s purported goal is to combine centralized order matching with decentralized on-blockchain order settlement into a hybridized product that will take the best aspects of both centralized and decentralized exchanges.
The last time we talked about LRC we were looking for a pullback and then a confirmed flip of the $1.32 area. We now have that and $2.04 becomes our next major target area for Price Discovery resistance.
LUNA: Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements.
Another one we have discussed before. LUNA continues to test $52.34 for some type of breakage of resistance. This is worth watching because if the bulls are able to cross the line, the next resistance is about 40% away.
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