AVAX, NEAR Surge: Capital Rotation or Revival of the L1 Narrative?

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The narrative around Layer 1 blockchains is heating up again.

After months of market focus on high-performance chains like Solana, older-generation Layer 1 networks—such as Avalanche (AVAX), NEAR Protocol (NEAR), Fantom (FTM), and The Open Network (TON)—are showing signs of renewed momentum. As Bitcoin hits new highs and broader crypto sentiment improves, capital is beginning to rotate into these established ecosystems. But is this just a case of capital spillover, or are we witnessing a genuine revival of the foundational public chain narrative?

This resurgence isn’t random. Each of these networks is leveraging unique catalysts—ranging from AI integration and gaming partnerships to ecosystem incentives and exchange listings—to re-engage developers, users, and investors.

NEAR Protocol: Riding the AI Wave with Strategic Positioning

One of the most notable catalysts for NEAR’s recent rally is its deepening alignment with artificial intelligence.

NEAR Protocol co-founder Illia Polosukhin announced participation in NVIDIA’s GTC24 conference, where he joined a panel titled “Transforming AI” alongside industry leaders including Jensen Huang. This high-profile exposure triggered immediate market reaction—NEAR surged past $5 and later broke $8 within days.

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The market wasn’t just reacting to a speaking slot. NEAR has long positioned itself as an infrastructure layer for next-gen AI use cases. In early 2023, the team outlined a vision where NEAR enables secure data sharing, rule-based access control, and decentralized data pricing—critical components for ethical and scalable AI development.

By creating a value layer for data transactions, NEAR allows AI models and applications to source training data transparently and fairly. This differentiates it from centralized alternatives and aligns with growing demand for open, permissionless AI ecosystems.

Additionally, NEAR has partnered with Cosmose AI, a consumer behavior analytics platform, to build a stablecoin-powered payment system that enables low-cost crypto spending in real-world retail environments. This practical application strengthens its utility beyond speculative narratives.

Even meme tokens within the NEAR ecosystem are benefiting from the renewed attention. BLACKDRAGON, a community-driven meme coin, has surged over 700% from its lows and maintains strong 24-hour momentum—a sign of reawakened community engagement.

FAQ: Understanding NEAR’s AI Advantage

Q: What makes NEAR suitable for AI applications?
A: NEAR offers fast transaction finality, low fees, and scalable smart contracts—ideal for handling large volumes of data transactions between AI models and data providers.

Q: Is NEAR competing with dedicated AI blockchains?
A: Rather than compete directly, NEAR positions itself as a foundational layer that supports interoperability and data integrity across various AI protocols.

Q: How does the NVIDIA partnership impact NEAR’s long-term prospects?
A: While not a formal partnership, Polosukhin’s presence at GTC24 signals growing recognition of blockchain’s role in AI infrastructure, boosting developer and institutional interest.

Avalanche: Gaming and Ecosystem Upgrades Drive Momentum

Avalanche is experiencing a parallel revival, fueled by strategic moves in gaming and technical upgrades.

On March 11, South Korean gaming giant Nexon Group announced a collaboration with Ava Labs to launch MapleStory Universe, a Web3 version of its iconic MMORPG MapleStory. With over 180 million users since its 2003 debut, this move brings one of the most recognizable gaming franchises into the blockchain space.

The first title, MapleStory N, will allow players to create custom game worlds and earn Web3 rewards. While specifics about tokenomics remain under wraps, NFTs are confirmed as central to the ecosystem’s value model. The PC version is expected to launch on Avalanche by year-end—an exciting milestone for Web3 gaming adoption.

Concurrently, Avalanche’s core development team rolled out the Durango upgrade, introducing “Teleporter”—a cross-subnet messaging protocol that enhances interoperability across Avalanche’s subnet architecture. This strengthens the network’s appeal for enterprise-grade applications requiring isolated yet interconnected environments.

Market response has been strong:

Meme coins on Avalanche are also seeing action. COQ, a community-driven token, has rallied over 300% from its bottom, reflecting broader ecosystem revitalization.

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TON: Telegram’s Ecosystem Push Fuels Growth

Another standout performer is The Open Network (TON)—a Layer 1 blockchain originally developed by Telegram.

In late February, Telegram announced the global expansion of its advertising platform, now available in nearly 100 new countries. Crucially, ad revenue sharing will be powered by TON blockchain: channel owners receive 50% of ad revenue in Toncoin (TON), which they can either cash out or reinvest.

This creates a self-sustaining economic loop: creators earn TON → spend TON to grow their channels → attract more advertisers → generate more revenue. It's a powerful flywheel effect that ties real-world utility directly to token demand.

The result? TON spiked over 27% following the announcement and reached $4.39 with a 29.5% daily gain.

Further bullish momentum came on March 1 when Binance launched TON perpetual futures contracts (1–50x leverage). While not a spot listing, this move signals growing institutional interest and primes the market for potential future trading pairs.

Fantom: Smart Money Flows Signal Renewed Confidence

Fantom (FTM) rounds out this wave of revival—with a different kind of signal: smart money inflows.

According to on-chain analytics firm Nansen, FTM ranked among the top assets for Smart Money inflows on multiple days in early March:

These flows coincided with price action—FTM briefly broke $0.70 on March 4 (+30.56%) and stabilized around $0.83 by mid-March.

One whale exemplifies the trend: an address that acquired 4.71 million FTM (~$2.69M) via Gemini and Airswap realized a $600K paper profit within just two days.

Such coordinated inflows suggest growing confidence in Fantom’s underlying fundamentals—potentially tied to upcoming upgrades or private deals with institutional partners.

FAQ: Assessing the Smart Money Signal

Q: What is “smart money” in crypto?
A: It refers to capital deployed by experienced investors or institutions whose on-chain behavior often precedes major price movements.

Q: Why does FTM attract smart money now?
A: Likely due to undervaluation relative to fundamentals, upcoming network improvements, or strategic positioning in DeFi and enterprise use cases.

Q: Should retail investors follow smart money blindly?
A: No—use it as one indicator among many. Always conduct independent research and assess risk tolerance.

Final Thoughts: Is This Sustainable?

The resurgence of AVAX, NEAR, FTM, and TON reflects more than just speculative rotation—it suggests that narratives around utility, real-world integration, and ecosystem maturity are regaining traction.

With AI, gaming, advertising, and cross-chain interoperability serving as catalysts, these Layer 1 platforms are proving they’re not relics of the last cycle but evolving ecosystems capable of capturing new demand.

As the bull market matures, expect increased competition among L1s—not just on speed and cost, but on use case specificity and developer adoption.

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