Greed has returned to the market, charging up layer-1 (L1) blockchains in response. This week's recap highlights the performance of key L1 platforms, including Solana, Sui, and Hedera, while analyzing market trends and ecosystem developments.
Key Highlights
- Top Performers: Solana (+21.5%) and Cardano (+39.7%) led gains among smart contract platforms.
- Sui Network Outage: A brief outage on Nov. 21 was resolved swiftly, with SUI token up 877.9% from its 2023 low.
- Solana’s Milestone: SOL hit a new all-time high (ATH) at $259.40, supported by four spot ETF filings.
- Hedera’s Surge: HBAR soared 85.2% amid rumors of a potential U.S. spot ETF filing.
Market Overview
According to DefiLlama, smart contract platforms (primarily L1s) rank as the sixth-best-performing crypto sector, delivering an 11.6% seven-day market-cap-weighted return. In contrast, the real-world asset (RWA) sector leads with 32.2% growth.
Top 10 L1 Performers (Weekly Gains):
- Solana (SOL): +21.5%
- Cardano (ADA): +39.7%
- Avalanche (AVAX): +1%
- Stellar (XLM): +4%
Sui Network: Resilience Amid Challenges
Despite a Nov. 21 outage caused by a congestion control bug, the Sui Network demonstrated resilience:
- SUI Token: Up 877.9% from its October 2023 low, trading at $3.53.
- TVL Growth: Reached a record $1.65 billion, driven by protocols like Aftermath Finance (+78.3% weekly TVL growth).
Key Developments:
- FDUSD Stablecoin Launch: First Digital’s FDUSD became Sui’s second native stablecoin, boosting DeFi liquidity.
- Outage Resolution: Validators restored operations within two hours, marking Sui’s first major outage since mainnet launch.
Solana: Breaking Records
Solana (SOL) shattered its 2021 ATH, peaking at $263.70 this week. Key drivers include:
- ETF Filings: VanEck, 21Shares, Bitwise, and Canary Capital submitted spot SOL ETF applications to the SEC.
- DeFi Growth: TVL surged 49.2% monthly, with Raydium (+23.8%) leading gains.
Ecosystem Updates:
- USDS Stablecoin: Sky (formerly Maker) launched its DeFi-native stablecoin on Solana, expanding lending/borrowing opportunities.
Hedera’s Unexpected Rally
Hedera (HBAR) surged 85.2%, defying its historically muted DApp ecosystem:
- Market Cap: Nearing $5 billion.
- ETF Speculation: Canary Capital’s HBAR spot ETF filing fueled bullish sentiment.
- TVL Growth: Protocols like SaucerSwap and Stader drove a 33% weekly increase.
FAQ Section
1. Why did Solana’s price hit a new ATH?
Solana’s breakout was fueled by spot ETF filings and robust DeFi growth, including a 49.2% monthly TVL increase.
2. What caused Sui Network’s outage?
A bug in its congestion control system halted block production for two hours on Nov. 21 before validators resolved the issue.
3. Why did Hedera (HBAR) surge?
HBAR’s rally aligns with XRP/XLM pumps and speculation around a potential U.S. spot ETF.
Final Thoughts
This week underscored the dynamic nature of L1 blockchains, with Solana and Hedera capturing headlines while Sui demonstrated operational resilience. As ETF narratives gain traction, L1 tokens remain a focal point for investors.