🟣 Layer 1 vs Layer 2 (who does what)
📘 Crypto for beginners: not all chains do the same
Layer 1 = base of the network (BTC, ETH, SOL, BNB, SUI, etc.)
Layer 2 = built on top to scale (e.g.: Arbitrum on ETH)
✔ Layer 1 sets the market pulse
✔ Layer 2 amplifies narrative and use, but depends on its Layer 1
Examples from 2 years:
ETH rises due to adoption + staking + upgrades → ✔ strength of Layer 1
ARB follows the ETH cycle, but if ETH falls sharply, ARB usually falls more → normal in L2
SOL is a fast Layer 1, but had drawdowns of 50%+ in 2023 → then recovered in 2024/25 with the ecosystem growing
“Layer 1 = heart.
Layer 2 = legs.
If the heart slows down, the legs do too.”
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