In the current bull run, layer-1 coins like Solana (SOL), Avalanche (AVAX), and Cardano (ADA) are outperforming layer-2 tokens like Arbitrum (ARB) and decentralized finance (DeFi) assets like Uniswap (UNI) and MakerDAO (MKR). Layer-1 coins have seen an average increase of 50% in the past month, while layer-2 coins and DeFi tokens have only added around 10% during the same period.

This divergence in performance raises questions about the factors driving market preferences and the strategic positioning of different crypto asset classes. One possible explanation is that layer-1 coins are seen as more foundational assets, laying the groundwork for developing decentralized applications (dapps) and serving as the backbone of the broader blockchain ecosystem.

Layer-2 tokens, on the other hand, are focused on enhancing the scalability and throughput of layer-1 mainnets, particularly Ethereum. They are designed to address the limitations of layer-1s, such as high gas fees during periods of increased on-chain activity. DeFi tokens, like UNI, are tied to the performance of their underlying protocols and rely on general market sentiment and the health of the broader DeFi ecosystem.

The outperformance of layer-1 coins may also be attributed to the growing demand for blockchain infrastructure. As the crypto sphere matures and attracts more users, the need for robust and scalable blockchains becomes increasingly crucial. Layer-1 coins provide the foundation for layer-2 and DeFi tokens to thrive.

Overall, the broader crypto market is on an uptrend, with improving regulatory developments and a revival in trading activity contributing to the positive sentiment. However, the differing performance of layer-1, layer-2, and DeFi tokens highlights the complexity of the market and the various factors influencing investor preferences.