Can L1 tokens compete with Bitcoin in the cryptocurrency space?Author: AJC, Research Manager at Messari; Source: X, @AvgJoesCrypto; Translated by: Shaw, Jinse Finance
Cryptocurrency Drives Industry Development
Refocusing on cryptocurrency is crucial because it remains the ultimate target where most of the industry’s capital is trying to invest. The total market capitalization of cryptocurrencies has reached $3.26 trillion. Of this, Bitcoin accounts for $1.80 trillion, or 55%. Of the remaining $1.45 trillion, about $0.83 trillion is concentrated in other Layer-1 protocol (L1) tokens. In total, approximately $2.63 trillion (about 81% of all crypto capital) is allocated to assets that the market already considers money or believes may acquire a monetary premium.
Given this, whether you are a trader, investor, capital allocator, or developer, it is critical to understand how the market allocates and withdraws monetary premiums. In the cryptocurrency sector,
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