What is the difference between Layer 1 and Layer 2?

Layer 1: Smart contract platforms and base-layer blockchains including Ethereum, Solana, Avalanche, and more. Layer 2: Scaling solutions built on top of Layer 1 blockchains to improve throughput and reduce fees. The narratives may share constituent tokens (many crypto projects fit multiple narratives) but represent distinct capital-flow units.

Which narrative is performing better, Layer 1 or Layer 2?

Performance rotates on a weekly to monthly cadence. To see the live ranking, open Sharpe's Narratives dashboard and sort by 7-day or 30-day aggregate market cap change. Combining performance with social mindshare and funding-rate deltas produces a higher-conviction call than any single metric alone.

Are Layer 1 and Layer 2 correlated?

Most crypto narratives correlate with BTC at 0.7–0.9 during risk-on regimes and decouple during idiosyncratic catalysts (token-specific news, sector-specific regulatory events, narrative-defining launches). Sharpe's Correlation Matrix exposes the rolling 7-day, 30-day, and 90-day correlation between Layer 1 and Layer 2 constituent tokens.

How do I trade the Layer 1 vs Layer 2 rotation?

The cleanest expression is a long/short pair trade: long the outperforming narrative's top-liquid tokens, short the underperforming narrative's top-liquid tokens (on perps). This captures the relative-strength spread without broad-market risk. Sharpe's Narratives dashboard surfaces the daily leader; execution tools are on the Futures and Arbitrage pages.

Which tokens are in Layer 1?

The Layer 1 narrative tracks tokens in Sharpe's layer-1 category mapping plus manual curation. Open the /narratives/layer-1 page for the full list of top tokens with market cap, 24h volume, and 7-day performance.

Which tokens are in Layer 2?

The Layer 2 narrative tracks tokens in Sharpe's layer-2 category mapping plus manual curation. Open the /narratives/layer-2 page for the full list of top tokens with market cap, 24h volume, and 7-day performance.

Layer 1 vs Layer 2 — Narrative Rotation Comparison

Layer 1 vs Layer 2 — Live Stats

Metric	Layer 1	Layer 2	Δ
Aggregate Market Cap	$2.14T	$7.11B	+30044.7%
TVL	$0.00	$0.00	—
24h Change	-1.26%	-1.17%	—
7d Change	-5.31%	-10.60%	—
30d Change	+0.01%	-3.91%	—
24h Volume	$63.98B	$485.83M	+13070.0%
Open Interest	$16.40B	$247.13M	+6537.2%
Mindshare	+0.00%	+0.00%	—
Coin Count	250	141	—

Live narrative stats from Sharpe's tracker cache, refreshed every 30 minutes.