Movement upgrades to an independent L1, ecosystem revival signals growth

Movement [MOVE] has recently achieved a key breakthrough after a long period of adjustment. The project completed its strategic migration from Ethereum Layer 2 (L2) to a fully independent Layer 1 (L1), marking a new stage in its development. According to the latest data, MOVE has seen a significant rise recently, with market trading activity also becoming more active. This shift not only represents an upgrade in technical architecture but also reflects ongoing optimization of the internal ecosystem logic.

L1 Migration Drives DeFi Ecosystem Prosperity

As an independent L1, Movement has established closer cooperation with DeFi applications within its ecosystem. Currently, over 10 DeFi projects are deployed on the Movement network, contributing transaction fees and steadily increasing capital inflows. These earnings are incorporated into Movement’s token buyback plan, directly reducing circulating supply and creating a healthy ecological cycle.

A notable partnership is LayerBank’s development on Movement L1. When LayerBank launched the ULAB token, it injected approximately $2.3 million into the ecosystem, further enhancing investment appeal at the application layer. This capital inflow driven by ecosystem applications is gradually validating the commercial viability of Movement L1 as an independent public chain.

On-chain activity data further illustrates this ecosystem vitality. Monthly active addresses recently increased by 17%, reaching 21,400. This indicates that even during a low-price phase, user participation and developer enthusiasm continue to grow. According to Movement Explorer, nearly 570,000 accounts have been created, with 28,837 smart contracts deployed by 4,710 developers. Transaction counts also show an upward trend, rising from 50,900 to 84,900, with monthly transaction volume reaching 2.8 million.

On-Chain Data Validates Growth Logic

These on-chain indicators reflect that the Movement L1 ecosystem is gradually improving. The synchronized growth in account numbers, contract deployments, and developer involvement suggests that this is not just short-term hype driven by price fluctuations, but genuine ecosystem development. Notably, on-chain activity has increased even during periods of low prices, which usually indicates stable engagement from real users and developers.

The doubling of transaction volume further confirms the authenticity of this ecosystem shift. When on-chain activity and market prices rise together, it typically signals a fundamental improvement in ecosystem attention and participation, rather than mere short-term speculation.

Technical Outlook and Uptrend Confirmation

From a technical perspective, Movement has clearly broken through a downtrend line that had suppressed prices for over two months. This breakout is significant, indicating that the long-term selling pressure has eased. However, it’s important to note that the overall trend remains in a downward channel, which has been in place since late December 2023.

At that time, MOVE reached a high above $1.50 before experiencing a rapid correction. Currently, the price is seeking support around $0.0418. While short-term gains are notable, the decline from previous highs remains substantial. Whether the price can sustain upward movement depends on holding current support levels and challenging higher levels around $0.0600. If the price stabilizes above these levels, a new uptrend could form. Conversely, if resistance holds, selling pressure may reassert dominance.

Looking at technical indicators, the MACD histogram still shows bearish momentum. The Cumulative Volume Delta (CVD) is at a negative $8.35 million, indicating that after a recent short-term rebound, selling pressure remains dominant. This suggests that although there are short-term bullish signals, market confidence in a sustained rally still needs further validation.

Outlook and Key Observations

Movement’s evolution from L2 to L1, combined with increasing ecosystem activity and optimized tokenomics, is laying a foundation for future price movements. The synchronized growth in on-chain data and market response is crucial for assessing whether this upward wave can be sustained.

Technically, Movement shows signs of recovery, but a true trend reversal requires confirmation over a longer timeframe. If the L1 ecosystem continues to build vitality and DeFi applications keep expanding, the effects of token buybacks and reduced circulating supply will become more evident over the longer term. This is the core value of Movement as an independent L1: from architectural upgrades to ecosystem development, ultimately reflected in price recognition.