Old L1s awaken, hot money flows back to former "Ethereum killers"
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Old L1s awaken, hot money flows back to former "Ethereum killers"
Native protocol tokens of established blockchains such as Polkadot, NEAR, and ALGO are beginning to attract market and speculative capital attention.
Navigating Web3 tides with focused insightsAuthor: NingNing
Are institutions moving in? Today, a batch of long-dormant legacy L1s began to awaken.
Show love to old retail investors—pay attention to the husband chains (L1s).
Riding the market's FOMO wave around "Solana flipping Ethereum," native protocol tokens of established chains like Polkadot (DOT), NEAR, and ALGO are starting to attract market attention and hot money.
Tokens with over 15% gains in the past 24 hours include $SOL, $NEAR, $ALGO, and $DOT.
Once dominant by market cap and serving as Web3 infrastructure, these legacy chains align more closely with institutional investment preferences compared to memecoins or inscriptions. Their recent awakening and unusual movements in the secondary market may signal that institutional capital is beginning to accumulate positions.
Regarding 7-day returns versus volatility for observed L1 Top Tokens, $ETH shows higher 7-day volatility than $BTC—the benchmark for market beta—yet underperforms $BTC in 7-day returns. This might explain the strong FUD sentiment surrounding Ethereum in the secondary market.
$NEAR stands alone in the upper right corner of the chart above, exhibiting both high volatility and high returns—an ideal asset type favored by short-term traders.
$SOL, $DOT, and $ALGO fall into the middle tier.
When examining 7-day price correlations among the L1 Top Tokens we track, we observe Ethereum’s awkwardly weak position: apart from a strong correlation with $ALGO, its correlations with other top tokens are relatively low, and its correlation with $BTC stands at only 0.45.
In contrast, $SOL appears extremely strong, showing high correlation with all other top tokens except $ETH.
Finally, here is an L1 Top Token investment portfolio for your reference.
Minimum Risk Portfolio Allocation
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Annualized Return: 245.00%
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Annualized Volatility: 0.65
DOT NEAR ALGO
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Allocation Ratio: 65.75% 0.27% 33.98%
That's all.
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