Research Summary

The report discusses the “L1 Wars” narrative that dominated the second half of the recent bull market in the crypto space. The narrative was sparked by Avalanche’s announcement of “Avalanche Rush,” a $180M liquidity mining incentive program. This led to a significant surge in the price of the AVAX token and inspired other L1 platforms to launch similar programs. These initiatives resulted in token price appreciation, increases in total value locked (TVL), and a growth in decentralized applications (dApps) with expanding user bases.

Actionable Insights

  • Monitor L1 platforms: Other Layer 1 platforms may launch similar incentive programs following the success of Avalanche’s “Avalanche Rush”.
  • Investment opportunities: Such initiatives often lead to token price appreciation, presenting potential investment opportunities.
  • Watch for dApp growth: These programs can result in a proliferation of decentralized applications (dApps) with growing user bases, indicating areas of potential growth and investment.

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