April Layer 1 Landscape Recap

Money and attention move frequently in the crypto industry, with the 24/7 nature of the markets giving way to the rapid acceptance of short-term narratives amongst traders, investors, and liquidity providers. If the past is any indication, these narrative shifts can also lead to changes in the behavior of users and developers as they seek to capture the momentum of the latest trends. In last month’s recap of the Layer 1 (L1) blockchain landscape, we highlighted the significant fear and uncertainty that gripped the crypto industry in March as it processed the cascading effects of multiple bank failures and the resultant destabilization of USDC. 

Just a few weeks later, crypto market participants turned their attention to the Ethereum Shapella upgrade, which was ultimately executed without any major hitches on April 12th. The activation of staked ETH withdrawals and validator rewards - and the reduction of protocol risk - appears to have contributed positively to Ethereum’s valuation, with its market cap growing by $7.3 billion for a gain of 3.3% over the course of April.