15 Major Layer-1 Blockchain Ecosystems to Watch in 2025: Overview and Investment Guide

Core Value of Layer-1 Blockchains

Layer-1 blockchains are the foundational infrastructure of the crypto ecosystem. As independent underlying networks, Layer-1 is responsible for final transaction settlement and record confirmation without relying on any external systems. These networks maintain security and decentralization through their own consensus mechanisms (such as proof of work or proof of stake), becoming the backbone of the entire digital asset world.

Unlike Layer-2 solutions that enhance performance by building on existing blockchains, Layer-1 blockchains are standalone infrastructures. They offer not only transaction speed and throughput but also, more importantly, decentralization, security, and transparency.

Unique Advantages of Layer-1 Blockchains

As the fundamental framework of the crypto world, Layer-1 blockchains possess several key advantages:

Security and Decentralization: No single entity can control the network, transactions are irreversible, all transaction records are transparent and traceable, ensuring trust and accountability.

Independent Operation: Each executes transactions and smart contracts independently, employing diverse consensus mechanisms to validate transactions and maintain network integrity.

Economic Incentives: Most Layer-1 native tokens support the entire ecosystem economy, used for paying fees, staking rewards, and governance voting.

Developer-Friendly: As underlying infrastructure, Layer-1 provides flexible development platforms supporting the creation of various decentralized applications (dApps).

Network Effects: Mainstream Layer-1 blockchains benefit from strong network effects. The more users, the higher the network value, making the entire ecosystem more resistant to congestion.

Overview of Layer-1 Projects Worth Watching in 2025

Bitcoin(BTC): Unshakable Digital Gold

Current Price: $89,000 | Market Cap: $1.78 trillion | 1-Year Performance: -10.48%

As the pioneer of cryptocurrencies, Bitcoin remains the cornerstone of Layer-1. Since its launch in 2009 by the pseudonymous creator Satoshi Nakamoto, Bitcoin has become the most widely accepted and applied crypto asset due to its pioneering blockchain technology, unparalleled security, and immutability.

Bitcoin’s main uses are digital payments and investment tools. With a fixed supply of 21 million and its decentralized nature, it is hailed as “digital gold.” Bitcoin halving events occur approximately every four years, each reducing new Bitcoin mining rewards and further reinforcing its scarcity.

In 2023, Bitcoin ecosystem saw significant developments. The launch of the Ordinals protocol allows NFTs to be directly minted on the Bitcoin blockchain (such as ORDI, SATS, RATS). Meanwhile, Bitcoin Layer-2 solutions like Stacks opened new horizons for complex DeFi applications and smart contracts. Bitcoin also explored derivative protocols like Atomicals and ARC20, using satoshi units to represent various tokens. The Taproot Assets protocol from Lightning Labs further demonstrated Bitcoin’s multifunctionality.

Ethereum(ETH): Leader in DeFi and NFT Ecosystems

Current Price: $2,980 | Market Cap: $360 billion | 1-Year Performance: -14.74%

Ethereum boasts the largest developer community and the most active dApp ecosystem in crypto, currently hosting over 3,000 active applications. Since its founding in 2015 by Vitalik Buterin and others, Ethereum has evolved from a simple digital currency platform into the world’s largest decentralized application ecosystem.

Ethereum’s core competitiveness lies in its high network effect and mature development tools ecosystem. The community has contributed rich frameworks, tools, and protocols, continuously driving innovation.

In 2023, Ethereum continued its transition to Ethereum 2.0. Key improvements include optimization of Layer-2 scaling solutions (like Rollups), which significantly reduce transaction fees and increase throughput. Looking ahead to 2024, the Ethereum community expects Ethereum 2.0 to fully realize its potential, especially in scalability and energy efficiency. The full transition to proof of stake(PoS) is expected to further reduce environmental impact and attract more ecosystem participants.

Solana(SOL): Pioneer of High-Speed Transactions

Current Price: $124.80 | Market Cap: $70.2 billion | 1-Year Performance: -36.94%

Solana is renowned for its outstanding high throughput and low transaction costs. Its innovative consensus mechanism—combining proof of history(PoH) with proof of stake(PoS)—achieves high speed and efficiency, making it a popular choice for decentralized applications.

The SOL token is used to pay for transaction and smart contract execution fees, while validators stake SOL to secure the network. Currently, Solana has surpassed XRP to rank as the fifth-largest crypto by market cap.

In 2023, Solana made major progress in ecosystem development. The launch of Solana Improvement Documents(SIMDs) standardized the process for developer proposals, with 79 proposals submitted. The Firedancer upgrade aims to significantly boost validator transaction processing speed. Network security and decentralization have been strengthened, with over 2,000 nodes. Helium was successfully integrated into the Solana network in 2022, demonstrating support for decentralized systems.

Ecosystem projects flourished, including liquidity staking protocols (Marinade Finance, Jito), DeFi leaders (Jupiter, Raydium, Orca), and emerging applications (STEPN, Star Atlas, Audius). Jupiter excelled in DeFi, launching the Jup token and developing a leading routing engine. Collaborations with Google Cloud and AWS enhanced network transparency. The launch of Solana Saga mobile and Helium Mobile further expanded the ecosystem.

BNB Chain(BNB): Extension of Exchange Ecosystem

Current Price: $842.90 | Market Cap: $116.1 billion | 1-Year Performance: +19.93%

BNB Chain (formerly Binance Smart Chain) is a high-performance smart contract platform developed by the leading global exchange Binance. Launched in September 2020, it operates parallel to Binance Chain, providing an efficient network for smart contract applications.

BNB Chain’s dual-chain architecture allows seamless cross-chain asset transfers, supporting DeFi, NFT, and gaming applications. Compared to Ethereum, BNB Chain’s ecosystem is newer but growing rapidly, with over 1,300 active dApps. The native token BNB is both the platform’s fuel and widely adopted within the Binance ecosystem.

BNB Chain’s PoSA consensus offers faster and cheaper transactions than Ethereum. Its compatibility with existing Ethereum dApps has attracted many developers familiar with Ethereum.

In 2023, the project was officially renamed BNB Chain, signaling a broader vision—beyond exchange integration, embracing DeFi and NFTs. It introduced an independent PoS chain for staking and governance. Cross-chain bridges expanded interoperability with other blockchains. In 2024, Layer-2 integrations and sharding are expected to improve scalability, along with more strategic partnerships and innovative projects.

Balancers of Usability and Innovation

Avalanche(AVAX) - Current price pending | Market cap: $13.4 billion | 1-year performance: 83%

Avalanche is a high-performance, scalable Layer-1 platform known for transaction finality in under two seconds. Its unique consensus mechanism combines classical consensus and Nakamoto consensus, providing a perfect balance of security, scalability, and decentralization.

AVAX is used for paying transaction fees, network staking, and cross-subnet transactions. In 2023, Avalanche ecosystem grew significantly, with the C-Chain setting a new record of 3.07 million transactions. Mempool transactions accounted for over 50% of all transactions, causing fee surges. In just five days, users paid $13.8 million in fees for minting and transferring mempool transactions. AVAX burn rate increased sharply, reflecting higher network activity. On November 19, the C-Chain hit 2.3 million transactions in a single day, far above the average of 450,000. Collaboration with J.P. Morgan’s Onyx blockchain marked recognition in institutional applications.

Polkadot(DOT) - Current price: $1.73 | Market cap: $2.85 billion | 1-year performance: -76.96%

Polkadot is a multichain interoperability platform enabling transfer of information and value across different blockchains via its unique parachain model. The Inter-Blockchain Communication(IBC) protocol allows chains to operate independently while sharing security.

DOT is used for network staking, governance, and parachain auctions. In 2023, GitHub contributions reached 19,090. New Nomination Pools increased staking by 49%, expanding user participation. The announcement of Polkadot 2.0 promised upgrades in scalability, governance, and interoperability. Integration of USDC and the launch of the Rocco testnet optimized transaction experience.

Cosmos(ATOM) - Current price: $2.04 | Market cap: $987 million | 1-year performance: -70.64%

Cosmos is a decentralized network of independent blockchains addressing scalability and interoperability via the IBC protocol. Its core value is enabling chains to maintain sovereignty while communicating with each other.

ATOM is mainly used for staking and governance. In 2023, the launch of Interchain Security enhanced security for smaller chains within the network. Cosmos Hub’s daily transactions average 500,000, with ATOM transaction volume reaching 20 million. The Theta upgrade introduced cross-chain accounts, and Rho brought liquid staking. The Interchain Foundation allocated $26.4 million for developing the Interchain Stack in 2024.

Emerging Technologies and Featured Applications

Kaspa(KAS) - Current price: $0.05 | Market cap: $1.22 billion | 1-year performance: -62.05%

Kaspa adopts the GHOSTDAG consensus mechanism, enabling fast transaction processing and network scalability. Its high block rate and instant finality surpass traditional blockchain architectures.

KAS is used for transaction fees and network incentives. In 2023, Kaspa migrated to Rust to fully leverage modern hardware, achieving unprecedented processing speeds. High-performance mobile wallets meet user mobile needs. The number of blocks and transactions processed per unit time increased dramatically. KAS appreciated over 1800% in 2023, reflecting strong market interest.

Sei(SEI) - Current price pending | Market cap: $1.37 billion | 1-year performance: 6,000%

Sei is a Layer-1 blockchain optimized for DeFi, providing a high-speed trading environment. Its native order book matching engine is a key innovation, significantly reducing DEX latency and increasing efficiency.

SEI is used for transaction fees, governance, and staking. In 2023, the ecosystem fund expanded to $120 million, with Foresight Ventures investing $50 million. Growth was driven by expansion into Asian markets and strategic partnerships like Graviton. On-chain optimizations enhanced DEX performance.

Internet Computer(ICP) - Current price: $3.04 | Market cap: $1.66 billion | 1-year performance: -72.80%

Internet Computer, developed by the DFINITY Foundation, aims to extend blockchain capabilities, supporting on-chain smart contracts and complete software systems. Its unique consensus mechanism achieves high throughput, with the USP of creating a decentralized, serverless cloud computing environment.

ICP is used for transactions, smart contracts, participant rewards, and governance. In 2023, WebSocket integration enabled real-time interactive applications, and stable memory expansion supported more complex applications. Smart contracts can securely call Web2.0 HTTPS interfaces. Direct integration with Bitcoin optimized cross-chain transactions. The Service Nervous System supports permissionless DAO token issuance. DFINITY’s grant program fostered ecosystem growth.

The Open Network(TON) - Current price: $1.54 | Market cap: $3.78 billion | 1-year performance: -74.17%

The Open Network, initiated by Telegram’s founder, aims to provide a highly scalable and user-friendly Layer-1 blockchain. After regulatory disputes with the SEC, the project was taken over by the TON Foundation and the NewTON community.

TON uses sharded multi-layer architecture to improve efficiency. Toncoin is the native asset, used for transaction fees, staking, and governance. In 2023, the ecosystem introduced decentralized storage and high-speed off-chain payment systems. In March 2024, Telegram announced that 50% of ad revenue would be distributed to channel owners via TON blockchain using Toncoin. Following this announcement, Toncoin appreciated by 40%. Telegram’s potential IPO could further increase Toncoin’s utility.

Innovators in High Performance and Interoperability

Sui(SUI) - Current price: $1.41 | Market cap: $5.27 billion | 1-year performance: -68.66%

Sui is a next-generation high-throughput, low-latency blockchain using the Move language to ensure smart contract security and flexibility. Its innovative consensus and low-cost processing are key advantages.

SUI is used for transaction fees, governance, and staking. In 2023, the ecosystem redistributed 157 million SUI tokens to support community and DeFi. After mainnet launch, Sui set a record with 65.8 million transactions in a single day, with a TVL peak of $188 million, ranking in the top ten blockchains. zkLogin introduced privacy-enhancing user access. Turbos DEX’s TurboStar plan accelerated ecosystem growth.

Aptos(APT) - Current price: $1.70 | Market cap: $1.28 billion | 1-year performance: -82.23%

Aptos is a Layer-1 platform pursuing high scalability, reliability, and ease of use. Move language and parallel execution engine are its technical pillars.

APT is used for transaction fees, governance, and staking. In 2023, the ecosystem raised over $400 million. Its TVL exceeds $8.5 million. Frequent transactions reach hundreds of thousands, with new accounts continuously growing. Integrations with Sushi, Coinbase Pay, and collaborations with Microsoft and NEOWIZ expand application scenarios. Infrastructure upgrades like Digital Asset Standard and Indexer strengthen the ecosystem.

Kava(KAVA) - Current price: $0.08 | Market cap: $83 million | 1-year performance: -84.02%

Kava is a unique Layer-1 platform combining Cosmos SDK’s scalability with EVM compatibility. This “interchain” architecture allows Ethereum dApps to leverage Kava’s advantages: fast transactions, low fees, and multi-asset access.

KAVA serves as governance and staking token. It uses Cosmos’s Tendermint BFT consensus for high security. Its native USDX stablecoin supports decentralized lending. Kava 14 and Kava 13 upgrades enabled direct minting of USDT on Cosmos. The “Kava Tokenomics 2.0” upgrade introduced a fixed supply, promoting adoption and scarcity. The strategic treasury holds over $300 million in assets, demonstrating commitment to decentralization.

ZetaChain(ZETA) - Current price: $0.07 | Market cap: $81.08 million | 1-year performance: -88.75%

ZetaChain aims to revolutionize interoperability, positioning itself as the first truly “full-chain” Layer-1. It can connect and interact with any blockchain, regardless of architecture, enabling seamless asset transfer, data exchange, and cross-chain smart contracts.

Launched in March 2023, ZetaChain’s ecosystem has grown rapidly, with over 20 active dApps and strategic partnerships with Chainlink, The Sandbox, and others. Its full-chain smart contract capability addresses challenges in cross-chain and multi-chain environments.

In 2023, ZetaChain surpassed 1 million testnet users from over 100 countries. The platform has processed over 6.3 million cross-chain transactions and supports deployment of over 200 dApps. Collaborations with Ankr Protocol and others accelerate access to Web3 infrastructure. Partnerships with BYTE CITY and Ultiverse bring cross-chain features into social entertainment and gaming. It secured $27 million in funding to support interoperability development.

The Future of Layer-1 and Layer-2: Symbiotic Development

The ongoing evolution of Layer-1 and Layer-2 solutions reflects the dynamic nature of blockchain technology. While Layer-2 enhances scalability and speed, Layer-1 remains the foundation, ensuring security, decentralization, and infrastructure integrity.

Their relationship is complementary. Layer-2 boosts performance but relies on Layer-1’s security and decentralization. Both are evolving. Improvements in Layer-1 (like Ethereum’s sharding) can enhance Layer-2 performance. Successful Layer-2 solutions, in turn, inspire upgrades to Layer-1. This dual-layer development will continue to dominate, as blockchain applications become increasingly mainstream, requiring a balance between security, decentralization, scalability, and speed.

Summary

Entering 2024, Layer-1 blockchains continue to lead the crypto revolution. Their continuous evolution and adaptation are crucial to meet the increasingly diverse needs of the digital world. From Solana’s lightning speed to Bitcoin’s invincible security, each Layer-1 blockchain contributes unique attributes, weaving a rich tapestry of the blockchain universe.

Layer-2 enhances performance, but Layer-1’s security and decentralization form its solid foundation. This symbiotic relationship ensures balance: Layer-1 provides a secure, decentralized base, while Layer-2 delivers scalability and speed. This is the core direction of blockchain’s future development.