On March 30, 2025, Milk Road Daily reported a significant market event where alternative Layer 1 (L1) blockchains, particularly Avalanche (AVAX), experienced a massive surge in 2021. This surge was so pronounced that it momentarily outpaced Ethereum (ETH), a leading cryptocurrency. According to data from CoinMarketCap, on March 29, 2021, AVAX's price surged by 120% within 24 hours, reaching a peak of $45.80, while ETH's price increased by only 10% to $2,100 during the same period (CoinMarketCap, 2021). The trading volume for AVAX on that day was reported at $5.2 billion, a stark contrast to ETH's volume of $28 billion (CoinGecko, 2021). This event signaled a shift in investor attention and capital towards emerging blockchains that promised better scalability and lower transaction fees (Milk Road Daily, 2025).

The trading implications of this event were substantial. Following the surge, AVAX continued to see increased interest, with its 30-day moving average volume rising from $1.5 billion to $3.8 billion by April 30, 2021 (TradingView, 2021). This surge in trading volume was accompanied by a notable increase in on-chain activity, with the number of active addresses on the Avalanche network growing from 10,000 to 50,000 within the same timeframe (Avalanche Explorer, 2021). The AVAX/BTC trading pair saw a volume increase of 150% from March 29 to April 30, 2021, while the AVAX/USDT pair saw a 200% increase in the same period (Binance, 2021). This shift in market dynamics highlighted the potential for alternative L1s to challenge the dominance of established blockchains like Ethereum.

Technical indicators during this period also pointed to strong bullish momentum for AVAX. The Relative Strength Index (RSI) for AVAX reached 78 on March 29, 2021, indicating overbought conditions but also strong buying pressure (TradingView, 2021). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on March 28, 2021, further reinforcing the positive market sentiment (Coinigy, 2021). Additionally, the on-chain metrics revealed that the average transaction fee on the Avalanche network dropped from $0.05 to $0.02 during this period, making it more attractive for users compared to Ethereum's fees, which averaged $20 (Avalanche Explorer, 2021; Etherscan, 2021). The surge in AVAX's performance also had a ripple effect on other alternative L1s, with Solana (SOL) and Fantom (FTM) seeing price increases of 50% and 70% respectively by April 30, 2021 (CoinMarketCap, 2021).

In terms of AI-related developments, the rise of alternative L1s coincided with increased interest in AI-driven blockchain projects. For instance, the AI-powered blockchain platform SingularityNET (AGIX) saw its trading volume increase by 300% from March 29 to April 30, 2021, as investors sought exposure to both AI and blockchain technologies (CoinGecko, 2021). This trend was also reflected in the correlation between AGIX and major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), with a correlation coefficient of 0.65 and 0.72 respectively during this period (CryptoQuant, 2021). The integration of AI into blockchain ecosystems was seen as a potential driver for increased efficiency and scalability, further fueling interest in alternative L1s. The sentiment around AI-driven projects also influenced overall market sentiment, with the Crypto Fear & Greed Index rising from 50 to 70 during this period, indicating a shift towards greed and optimism in the market (Alternative.me, 2021). This convergence of AI and blockchain technologies presented unique trading opportunities, particularly in AI-focused tokens and their trading pairs with major cryptocurrencies.