Could Layer-1 Altcoins Become Part of National Crypto Reserves？

With changes in crypto blockchains, the potential for an adoption of Layer-1 altcoins as a national reserve, particularly in the United States, is grabbing attention. While Bitcoin and Ethereum have long been seen as the mainstays of crypto, Layer-1 altcoins such as $SUI, $TRX, $AAVE, and others are becoming prominent players in the space.

The Case for Layer-1 Altcoins in National Reserves

Layer-1 altcoins, which serve as the foundational blockchain for decentralized applications, have been gaining significant attention for their scalability, speed, and security. Among these, $SUI is a standout with its current price of $4.13, seeing a 0.07% decline in the last 24 hours with a 24-hour trading volume of $1.25 billion.

In addition, $TRX (TRON) is experiencing a positive trend, with a price of $0.25385 and a 2.95% increase in the last 24 hours, accompanied by a $569.14 million trading volume.

But, national adoption would require more than just impressive price movements. Layer-1 altcoins need to prove their stability, scalability, and ability to handle large volumes of transactions without congestion.

The US government would likely demand robust technological frameworks that can ensure security and facilitate cross-border transactions seamlessly. In this regard, projects like $AAVE, priced at $316.72 with a 4.03% increase in 24 hours, and $SOL (Solana), currently priced at $235.09 and down by 1.94%, might offer some promising options.

Related:Layer-1 Altcoins Defy Bitcoin Dip: AVAX, DOT, FTM Surge

Market Trends: Altcoins on the Rise

Despite the challenges, the growing trading volumes and positive market trends of certain altcoins suggest that the global financial landscape could evolve toward integration with cryptocurrencies.

For instance, $AVAX (Avalanche), which is up by 2.22% to $34.45, has been gaining traction due to its high scalability and low fees, crucial attributes for any cryptocurrency aiming to serve as part of national reserves. Similarly, $INJ (Injective) has shown a notable increase of 4.93%, now priced at $20.03, reflecting strong investor confidence.

Beyond these market metrics, the infrastructure behind these coins plays a critical role. The ability to integrate with current financial systems, especially through decentralized finance (DeFi) protocols, adds another layer of complexity.

For instance, the growing interest in $ICP (Internet Computer) at $9.14 with a 1.88% increase points to a rising demand for platforms that can scale quickly without compromising decentralization.

Related: Crypto Trader Unveils Altcoin on Watchlist for Perp DEX, Gaming, RWA

The Road Ahead: Challenges and Considerations

Despite the clear potential of these Layer-1 altcoins, there are numerous hurdles to overcome before they could be considered for national reserves. Regulatory uncertainties, technological barriers, and concerns about their volatility remain significant challenges.

Additionally, projects like $RIO (Realio Network), which is down 1.4% to $0.6176, and $TAO (Bittensor), which is down by 0.99% to $452.24, show that the crypto market can experience sudden shifts.

This makes it difficult to maintain a stable reserve asset. Moreover, $XRP (Ripple), which is down by 0.98% to $3.07, illustrates the difficulties of navigating regulatory environments, especially in light of ongoing legal battles.