Which Layer-1 Blockchains Are Worth Your Attention in 2025?

Layer-1 represents the backbone of blockchain infrastructure. Unlike Layer-2 solutions that sit on top of existing networks, these base-layer protocols handle transactions independently, providing the security and decentralization that crypto ecosystems depend on.

What Sets Layer-1 Networks Apart?

Layer-1 blockchains operate as standalone networks with their own consensus mechanisms and security models. They offer several critical advantages:

Decentralization and Security: No single entity controls these networks. Transactions are permanent, transparent, and verifiable by anyone.

Independent Operation: They execute transactions and smart contracts without relying on external layers, using consensus methods like Proof of Work or Proof of Stake.

Native Token Utility: Each Layer-1 has its own token that powers transaction fees, staking, and governance.

Developer-Friendly: These networks support decentralized applications (dApps) and provide a flexible foundation for Web3 builders.

Network Effects: Popular Layer-1s become stronger as adoption grows. While Layer-2 solutions handle increased volume, they ultimately settle transactions on Layer-1, meaning the base layer remains irreplaceable.

The Current State of Layer-1 in 2025

The Layer-1 landscape has matured considerably, with established players proving their worth while new entrants challenge conventional thinking. Here’s what’s moving the market:

The High-Performance Leaders

Solana (SOL) continues to demonstrate why speed matters. With $3.46 billion in TVL and a market cap of $61 billion, SOL has positioned itself as the choice for developers prioritizing throughput. Its Proof of History consensus combined with Proof of Stake delivers impressive transaction speeds. The ecosystem expansion—from Jupiter’s DeFi routing to Raydium’s AMM to Audius’s audio platform—shows the breadth of applications possible on a fast network. Recent developments like partnerships with Google Cloud and the Solana Mobile Saga indicate ambitions beyond DeFi.

Avalanche (AVAX) took a different approach with subnet architecture. Despite recent market pressure (currently down 69.55% over one year), AVAX maintains $1.5 billion in TVL. The network achieved 3.07 million transactions at one point, showcasing capacity. The C-Chain processed 2.3 million transactions per day in November, highlighting its ability to handle volume spikes. Inscription activity—accounting for over 50% of transactions—demonstrates market demand even if it increases network fees.

BNB Chain (BNB) remains the practical workhorse. With $5.2 billion in TVL and market cap of $114.44 billion, BNB’s Proof of Authority consensus keeps transactions cheap and fast. Over 1,300 active dApps run on the network. The ecosystem supports everything from DeFi protocols to gaming, with seamless Ethereum compatibility attracting developers familiar with that environment. BNB itself benefits from deep Binance integration and broad institutional recognition.

The Security Maximalist

Bitcoin (BTC) stands in a category by itself. At $1.74 trillion market cap, Bitcoin’s 21 million supply cap and Proof of Work security model make it the gold standard for decentralization. The 2023 introduction of Bitcoin Ordinals opened NFT minting directly on-chain. Layer-2 solutions like Stacks address smart contract limitations without compromising Bitcoin’s core security. Despite a down year (-12.27%), Bitcoin’s institutional adoption and reserve asset status keep it fundamental to the ecosystem.

The Emerging Challengers

Kaspa (KAS) introduced GHOSTDAG, a novel consensus mechanism enabling rapid transactions without sacrificing decentralization. With current price down 62.71% but market cap of $1.19 billion, KAS proved capable of 1,800% gains in 2023. The shift from GoLang to Rust and improvements to block processing speeds show technical maturity.

The Open Network (TON) evolved from Telegram’s abandoned project into an independent ecosystem. With $21.9 billion market cap and $145 million TVL, TON gained practical utility through Telegram’s announcement to distribute 50% of ad revenue via TON blockchain in Toncoin. The potential Telegram IPO could dramatically increase use cases. Current price of $1.52 (down 74.47% annually) reflects broader market weakness, not fundamental issues.

Internet Computer (ICP) aims higher—replacing traditional cloud infrastructure with on-chain computing. Its $1.64 billion market cap and $88 million TVL support a growing ecosystem. Direct Bitcoin integration, HTTPS outcalls to Web 2.0, and real-time Websockets enable applications previously impossible on blockchain. Though down 73.11% year-over-year, ICP’s technical achievements suggest long-term potential.

Sei (SEI) carved a niche: DeFi optimization. Its native matching engine reduces latency for decentralized exchanges. The Sei Ecosystem Fund grew to $120 million, backing diverse applications. SEI’s focus on Asian markets and partnerships like Graviton show strategic growth planning. Current price of $0.11 (down 76%) reflects market-wide pressure rather than protocol failure.

The Smart Contract Innovators

Ethereum (ETH) remains the developer standard. At $352.77 billion market cap and $49 billion TVL, Ethereum hosts over 3,000 active dApps. The network’s transition to Proof of Stake reduced environmental impact. Layer-2 solutions like rollups address scalability without fragmenting the ecosystem. Though down 16.49% annually, Ethereum’s dominance in DeFi, NFTs, and enterprise applications shows staying power.

Sui (SUI) introduces Move programming language security to mainstream adoption. With $1.54 billion market cap and $557 million TVL, SUI achieved 65.8 million daily transactions post-launch. zkLogin provides privacy-preserving access. Despite 69.17% annual decline, the platform’s technical innovation and ecosystem projects show promise.

Aptos (APT) shares Move language benefits with different execution. $1.25 billion market cap, $342 million TVL, and $400+ million in funding from Tiger Global and PayPal Ventures indicate serious backing. Partnerships with Microsoft, Coinbase, and gaming companies suggest real adoption momentum. The 82.59% annual decline masks technical progress.

The Cross-Chain Specialists

Polkadot (DOT) enabled heterogeneous sharding before it became fashionable. With $2.81 billion market cap and $230 million TVL, DOT’s multichain architecture connects specialized blockchains. The Nomination Pools increased staking participation by 49%. Polkadot 2.0 promises further scalability improvements. Despite 77.27% annual decline, the network’s focus on interoperability addresses real problems.

Cosmos (ATOM) pioneered Inter-Blockchain Communication (IBC). The protocol enables data sharing between independent chains. ATOM’s $2 price point (down 71.12% annually) seems disconnected from 500,000 daily Cosmos Hub transactions and the Interchain Security framework protecting smaller networks. The community-backed ecosystem positioning suggests recovery potential.

ZetaChain (ZETA) took interoperability further—targeting true omnichain functionality. Launched in March 2023, the platform already supports over 200 testnet dApps with 1 million active users globally. Strategic partnerships with Chainlink and The Sandbox provide legitimacy. The $79.20 million market cap reflects early-stage status, but 6.3 million cross-chain transactions show real usage.

The DeFi Infrastructure Play

Kava (KAVA) combined Cosmos SDK with EVM compatibility. At $81.24 million market cap and $193 million TVL, KAVA positioned itself as a hub for DeFi innovation. The native USDX stablecoin eliminated oracle dependency for lending. Recent upgrades enable USDt minting directly on Cosmos. The fixed supply tokenomics introduced with “Kava Tokenomics 2.0” aims to create scarcity.

Comparing Performance Across Market Cycles

The data tells an interesting story about 2025’s Layer-1 landscape:

Winners: BNB (+18.19%) stands out with positive returns, benefiting from institutional adoption and exchange integration. Bitcoin’s relative resilience (-12.27%) maintains its position as the most stable Layer-1.

Under Pressure: Most alternative Layer-1s declined 60-89% annually—SEI (-76%), ICP (-73.11%), TON (-74.47%), ATOM (-71.12%), DOT (-77.27%), APT (-82.59%), KAVA (-84.31%), ZETA (-89.01%). This reflects broader market cycles rather than protocol failures.

Resilience Indicators: Networks with practical utility—Ethereum’s DeFi dominance, Bitcoin’s reserve asset status, Solana’s gaming/mobile ecosystem, BNB’s exchange integration—weathered volatility better.

Layer-1 vs. Layer-2: A Complementary Relationship

Layer-2 solutions address immediate scalability needs through rollups and sidechains. However, they depend entirely on Layer-1 security for final settlement. This creates symbiosis: Layer-1 provides the bedrock; Layer-2 handles the throughput.

Improvements in Layer-1—like Ethereum’s sharding roadmap or Solana’s Firedancer upgrade—enhance Layer-2 performance. Conversely, Layer-2 success inspires Layer-1 innovation. Both evolve together as blockchain finds mainstream applications requiring security, decentralization, and speed.

The Bottom Line for 2025

The Layer-1 space offers options for different needs:

  • Security maximalists choose Bitcoin
  • DeFi developers gravitate toward Ethereum and Solana
  • Cost-conscious traders favor Avalanche and BNB Chain
  • Interoperability seekers explore Polkadot, Cosmos, and ZetaChain
  • Innovation hunters investigate Sui, Aptos, and Internet Computer

Each Layer-1 represents different tradeoffs between decentralization, speed, costs, and ecosystem maturity. The 2025 market is differentiating between narratives and actual usage—networks with real adoption and technical progress prove more resilient than hype alone.

IN1,77%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)