Understanding the Foundation: What Makes Layer-1 Networks Critical
The blockchain ecosystem relies on first-layer networks as its fundamental infrastructure. These base-layer protocols form the bedrock where all transactions achieve finality and security through decentralized consensus. Unlike second-layer solutions that build atop existing chains to improve transaction throughput, Layer-1 networks operate as sovereign systems with independent security models and validation mechanisms.
The uniqueness of Layer-1 blockchains stems from five core characteristics:
Decentralization & Immutability: No single entity controls these networks. Once transactions are recorded, they remain permanent and verifiable by all participants, creating an auditable ledger of activity.
Independent Operation: Layer-1 systems execute transactions and smart contracts autonomously, employing various consensus approaches such as Proof of Work (PoW) or Proof of Stake (PoS) to maintain network integrity without external dependencies.
Native Economic Models: Most Layer-1 blockchains feature native tokens that serve multiple functions—covering transaction costs, enabling network staking, and granting governance rights to token holders.
Developer Infrastructure: These networks provide a stable foundation for building decentralized applications, with many accumulating decades of development tools, libraries, and best practices.
Strong Network Effects: Established Layer-1 platforms benefit from substantial user bases and developer ecosystems, creating compounding value as more participants join. Additionally, Layer-2 solutions depend on Layer-1 networks for final transaction settlement and security guarantees.
Bitcoin (BTC): The Original Standard
Current Market Snapshot:
Market Cap: $1.74 trillion
Price: $87.33K (+0.43% in 7 days)
Network TVL: $1.1 billion
Bitcoin remains the foundational cryptocurrency, introduced by the pseudonymous Satoshi Nakamoto in 2009. Its primary appeal lies in proven security through Proof of Work consensus and its fixed 21 million supply cap, earning it the designation of “digital gold” in investor portfolios.
Throughout 2023-2024, Bitcoin’s ecosystem expanded significantly beyond peer-to-peer payments. The introduction of Ordinals protocol enabled native NFT minting directly on the blockchain, spawning new token classes like ORDI, SATS, and RATS. Layer-2 solutions such as Stacks emerged to address Bitcoin’s smart contract limitations, opening new possibilities for complex financial instruments and decentralized finance applications.
The Taproot Assets protocol, released by Lightning Labs, further demonstrated Bitcoin’s versatility by using UTXO script data to represent various digital assets. These developments underscore Bitcoin’s continuous evolution and its role as an immutable settlement layer for the broader crypto ecosystem.
Ethereum (ETH): The Dominant Application Layer
Current Market Snapshot:
Market Cap: $352.98 billion
Price: $2.92K (-0.55% in 7 days)
Network TVL: $49 billion
Ethereum’s ecosystem encompasses over 3,000 active decentralized applications and commands the largest developer community in cryptocurrency. Since its 2015 launch by Vitalik Buterin and collaborators, Ethereum transcended its original role as a digital currency platform to become the dominant infrastructure for DeFi protocols, NFT marketplaces, and Web3 applications.
The network’s strength derives from its early-mover advantage and the robust tooling ecosystem developed by its community. In 2023-2024, Ethereum progressed toward Ethereum 2.0 through multiple milestones. The transition to full Proof of Stake consensus reduced environmental impact while enhancing network security. Layer-2 scaling solutions—particularly rollup technologies—achieved significant maturity, dramatically reducing transaction fees while maintaining Ethereum’s security guarantees.
Looking forward, developers anticipate continued improvements in scalability through Ethereum’s sharding roadmap, alongside deeper integration with alternative blockchains. This layered architecture balances security, decentralization, and transaction speed, establishing a model increasingly adopted across the industry.
Solana (SOL): High-Performance Execution
Current Market Snapshot:
Market Cap: $61 billion
1-Year Performance: +464%
Network TVL: $3.46 billion
Solana distinguishes itself through parallel transaction processing and innovative consensus combining Proof of History (PoH) with Proof of Stake (PoS). This architecture enables throughput exceeding 65,000 transactions per second with minimal latency, making Solana attractive for DeFi protocols and high-frequency applications.
The SOL token functions as the network’s currency—paying transaction costs, securing the network through staking, and enabling governance participation. In 2023, Solana’s ecosystem demonstrated remarkable vibrancy. The Solana Improvement Documents (SIMDs) formalized a protocol-enhancement proposal process, with 79 SIMDs submitted since inception. The Firedancer upgrade promises further performance gains for validators.
The ecosystem expanded across multiple verticals: Marinade Finance and Jito leading liquid staking solutions, Jupiter establishing a dominant DEX routing engine, and the Solana Mobile Saga smartphone creating a consumer-facing Web3 entry point. Strategic partnerships with Google Cloud and AWS enhanced network transparency and node deployment accessibility. The BONK airdrop campaign to early adopters generated significant community engagement and demonstrated the network’s commitment to ecosystem incentivization.
BNB Chain (BNB): The Exchange-Backed Ecosystem
Current Market Snapshot:
Market Cap: $114.87 billion
Price: $834.00 (+18.78% annually)
Network TVL: $5.2 billion
Initially launched as Binance Smart Chain in September 2020, BNB Chain has evolved into an independently-focused blockchain platform. The dual-chain architecture enables seamless asset transfers between networks, supporting DeFi protocols, NFT platforms, and gaming applications.
With over 1,300 active decentralized applications as of late 2023, BNB Chain’s ecosystem rivals many competing Layer-1 networks. The Proof of Staked Authority (PoSA) consensus mechanism delivers significantly lower transaction costs and faster finality compared to traditional proof-of-stake systems.
Throughout 2023-2024, BNB Chain formalized its rebranding, signaling broader ambitions beyond exchange integration. The network introduced a separate PoS staking chain, enhancing security and validator decentralization. Cross-chain bridge expansions improved interoperability with alternative blockchain ecosystems. Looking toward 2025, the community anticipates Layer-2 integration and potential sharding implementations, alongside strategic partnerships with emerging DeFi and NFT projects.
Avalanche (AVAX): Rapid Finality and Throughput
Current Market Snapshot:
Market Cap: $5.30 billion
Price: $12.33 (-1.04% in 24 hours)
Network TVL: $1.5 billion
Avalanche combines classical and Nakamoto consensus elements, achieving transaction finality in under two seconds. This consensus innovation, coupled with the AVAX token’s multi-functional role (transaction fees, staking, governance), positions Avalanche as a compelling alternative for performance-sensitive applications.
During 2023, Avalanche’s network activity surged notably. The C-Chain recorded 3.07 million transactions across a five-day period, with inscription-related transactions comprising over 50% of network activity. This activity spike elevated network fees substantially—users collectively paid $13.8 million for inscription minting and transfers in a single week. Concurrently, the network’s AVAX burn rate increased due to heightened transaction volume and inscription proliferation.
By November 2023, the Avalanche C-Chain achieved a record 2.3 million transactions in a single day, compared to the historical average of 450,000. The Primary Network processed over 40 transactions per second, with block finality occurring in approximately one second. Avalanche’s partnership with J.P. Morgan’s blockchain initiative (Onyx) demonstrated institutional validation of the network’s technology and economic model.
The Open Network (TON): Telegram’s Vision for Scale
Current Market Snapshot:
Market Cap: $3.74 billion
Price: $1.52 (+4.17% in 7 days)
Network TVL: $145 million
Originally conceptualized by Telegram co-founders Nikolai and Pavel Durov, The Open Network (TON) evolved into a community-driven Layer-1 platform after initial regulatory challenges. The network’s multi-level architecture incorporates sharding to manage high transaction volumes efficiently.
The Toncoin token serves as the network’s primary currency—facilitating transactions, governance, and network validation through staking mechanisms. In March 2024, Telegram announced a pivotal initiative: distributing 50% of its advertising revenue to content creators via the TON blockchain, paid in Toncoin. Following this announcement, Toncoin surged 40% in value, demonstrating the cryptocurrency’s practical utility within a consumer-facing platform.
This development signals potential for massive mainstream adoption if Telegram continues integrating TON-based services. The network’s ecosystem now encompasses social platforms, DeFi services, and NFT marketplaces, creating an increasingly interconnected Web3 environment. Ongoing speculation regarding Telegram’s potential initial public offering could further catalyze TON’s utility and market perception.
Polkadot (DOT): Interoperability Through Multi-Chain Architecture
Current Market Snapshot:
Market Cap: $2.82 billion
Price: $1.71 (-1.09% in 24 hours)
Network TVL: $230 million
Polkadot’s foundational innovation lies in its Inter-Blockchain Communication (IBC) protocol, enabling independent blockchains (parachains) to transfer messages and value while maintaining sovereign security models. This interoperability focus distinguishes Polkadot from monolithic Layer-1 designs.
The DOT token functions across governance, staking for network security, and parachain bonding mechanisms. Throughout 2023, Polkadot achieved notable milestones: March 2023 marked 19,090 developer contributions on GitHub, setting a community engagement record. The introduction of parathreads provided cost-effective blockchain hosting, while Next-Generation Scheduling enhanced network scalability and flexibility.
The announced Polkadot 2.0 upgrade promises substantial improvements in governance responsiveness, scalability, and cross-chain functionality. Staking participation increased 49% following Nomination Pools’ deployment, democratizing network participation. Integration of major stablecoins (particularly USDC via Circle) and the Rocco Testnet launch optimized transaction processing and user experience. Ecosystem expansion included five new parachains and heightened institutional participation through services like Zodia Custody.
Cosmos (ATOM): Interchain Security and Independent Chains
Current Market Snapshot:
Market Cap: $979.06 million
Price: $2.02 (+4.45% in 7 days)
Network TVL: $1.25 million (CosmosHub)
Cosmos addresses scalability and interoperability through a decentralized network of independent blockchains utilizing the Inter-Blockchain Communication (IBC) protocol. This architecture allows constituent chains to maintain sovereignty while participating in a broader ecosystem.
The ATOM token secures the network through staking and enables governance participation. The Cosmos Hub experienced significant growth during 2023-2024, with daily transactions averaging 500,000 and ATOM trading volume reaching 20 million units. The Theta upgrade introduced Interchain Accounts, enhancing cross-chain transaction capabilities, while the Rho upgrade brought Liquid Staking and NFT module support, expanding network functionality.
The Cosmos Hub 2.0 whitepaper outlined a renewed vision for the network’s architecture and ATOM’s evolving role. The Interchain Foundation allocated $26.4 million for Interchain Stack development in 2024, signaling confidence in the ecosystem’s trajectory. Recent developments—including dYdX’s migration to Cosmos and Noble’s USDC integration—demonstrate growing institutional and protocol-level participation, pointing toward substantial capital inflows and further ecosystem expansion.
Internet Computer (ICP): Decentralized Cloud Computing
Current Market Snapshot:
Market Cap: $1.63 billion
Price: $2.98 (-2.80% in 24 hours)
Network TVL: $88 million
The Internet Computer, developed by the DFINITY Foundation, fundamentally reimagines blockchain infrastructure by enabling smart contracts and complete software systems to operate entirely on-chain within a “serverless cloud computing” environment.
The ICP token facilitates transaction processing, smart contract execution, and network participant rewards while enabling governance through the Network Nervous System (NNS) protocol. Throughout 2023, ICP’s ecosystem underwent substantial technical advancement. Websocket integration enabled real-time interactive applications, expanded stable memory accommodated more complex smart contracts, and direct Bitcoin network integration streamlined cross-chain transactions.
The Service Nervous System (SNS) enabled permissionless DAO token issuance, potentially accelerating decentralized organization participation. The DFINITY Foundation’s grant programs stimulated ecosystem growth, while organic expansion within community projects, social media platforms, and NFT trading marketplaces reflected increasing adoption. These developments position Internet Computer as a viable alternative to traditional cloud infrastructure for decentralized applications.
Emerging Performers: High-Growth Layer-1 Networks
Kaspa (KAS): GHOSTDAG Innovation
Current Snapshot:
Market Cap: $1.20 billion
Price: $0.04 (+6.49% in 7 days)
1-Year Return: -62.45%
Kaspa implements the GHOSTDAG consensus protocol, enabling rapid block creation and near-instantaneous transaction finality. The transition to Dag Knight (an evolution of GHOSTDAG) and rewriting from GoLang to Rust unleashed substantial performance improvements.
The KAS token reached a staggering 1,800% valuation increase in 2023, reflecting growing ecosystem interest. Development of a high-performance mobile wallet addressed cryptocurrency accessibility demands. Enhancements enabling peer-to-peer communication for archival nodes extended historical data availability. Ongoing initiatives focus on establishing Kaspa as a fast, scalable, Proof-of-Work Layer-1 foundation for smart contracts and decentralized applications.
Sei (SEI): DeFi-Focused Performance
Current Snapshot:
Market Cap: $714.67 million
Price: $0.11 (-0.36% in 24 hours)
1-Year Return: -75.78%
Sei represents a specialized Layer-1 design optimized for decentralized finance. The network features a native matching engine and optimized order book functionality, reducing latency for DEX operations and other financial protocols.
The SEI Ecosystem Fund expanded to $120 million following a $50 million contribution from Foresight Ventures, supporting diverse Web3 initiatives across NFTs, gaming, and DeFi. The growth strategy emphasized Asian market penetration, particularly India through partnerships like Graviton. Chain-level optimizations enhanced DEX and trading application performance, establishing Sei as an attractive development platform for finance-focused projects.
Sui (SUI): Parallel Execution Architecture
Current Snapshot:
Market Cap: $1.54 billion
Price Data: Available on-chain
1-Year Return: -73%
Sui’s innovative architecture enables parallel transaction execution rather than sequential processing, substantially improving throughput. The Move programming language provides enhanced security and flexibility for smart contract developers.
Post-mainnet launch and major exchange listings, Sui demonstrated capability by processing 65.8 million daily transactions and achieving $188 million TVL at its peak. The zkLogin protocol revolutionized dApp access through Web 2 social accounts with privacy enhancements. The TurboStar program on Turbos DEX accelerated ecosystem project growth through fundraising support and zero commission incentives for Sui-based projects.
Aptos (APT): Scalable Execution Through Parallelization
Current Snapshot:
Market Cap: $1.25 billion
Price: $1.67 (+2.01% in 24 hours)
1-Year Return: -82.57%
Aptos demonstrates exceptional technical execution through its Move programming language and parallel transaction processing engine. The network achieved $342 million TVL and is backed by over $400 million in funding from prominent investors including Tiger Global and PayPal Ventures.
Network activity reached hundreds of thousands of daily transactions, with sustained new user growth. Strategic partnerships with Sushi (DeFi), Coinbase (payment integration via Petra wallet), and entertainment entities (Microsoft, NEOWIZ, MARBLEX) enriched the ecosystem. The introduction of a Digital Asset Standard expanded real-world asset applications, while infrastructure upgrades including the Indexer and MSafe’s multi-signature solution enhanced user experience.
Kava (KAVA): Cosmos-Based DeFi Infrastructure
Current Snapshot:
Market Cap: $81.52 million
Price: $0.08 (-3.83% in 24 hours)
1-Year Return: -84.35%
Kava uniquely combines the Cosmos SDK’s scalability with EVM compatibility, positioning itself as a hub for decentralized finance applications. The network operates 110+ active dApps across a $250 million TVL ecosystem.
The native USDX stablecoin facilitates lending and borrowing without centralized oracle dependence. Recent Kava upgrades (Kava 12, 13, 14) enhanced Cosmos DAO flexibility, network scalability, and USDt minting capabilities. The “Kava Tokenomics 2.0” upgrade transitioned KAVA to fixed supply, fostering scarcity dynamics. A community-owned Strategic Vault with $300 million in assets demonstrates commitment to decentralization and value distribution.
ZetaChain (ZETA): True Omnichain Architecture
Current Snapshot:
Market Cap: $79.53 million
Price: $0.07 (-1.97% in 24 hours)
1-Year Return: -88.97%
ZetaChain revolutionizes interoperability as the first truly “omnichain” Layer-1 network, enabling seamless interaction between diverse blockchain architectures. Omnichain smart contracts facilitate unprecedented cross-chain functionality.
Since March 2023’s mainnet launch, ZetaChain achieved 1 million testnet users across 100+ countries, processed 6.3 million cross-chain transactions, and supported 200+ testnet dApps. Strategic partnerships with Ankr Protocol accelerated Web3 infrastructure access, while collaborations with BYTE CITY and Ultiverse expanded social entertainment and gaming applications. A $27 million funding round supports ecosystem interoperability expansion.
Layer-1 and Layer-2: A Symbiotic Evolution
The blockchain technology landscape demonstrates the complementary nature of first-layer and second-layer solutions. While Layer-2 protocols enhance transaction speed and reduce costs, Layer-1 networks provide the immutable settlement layer and security guarantees upon which all scaling solutions depend.
This symbiotic relationship drives continuous technological advancement. Improvements in Layer-1 infrastructure—such as Ethereum’s planned sharding implementation—directly benefit Layer-2 performance. Conversely, successful Layer-2 deployments inform Layer-1 protocol evolution. This dual-layer approach will likely persist as blockchain technology achieves mainstream adoption, requiring balanced solutions that don’t sacrifice decentralization for speed.
Conclusion: Layer-1 Networks as Strategic Infrastructure
As 2025 unfolds, Layer-1 blockchains remain central to cryptocurrency’s value proposition. Each network offers distinct attributes—from Bitcoin’s unmatched security heritage to Solana’s transaction throughput, Avalanche’s rapid finality, and emerging networks’ specialized focus on interoperability or DeFi optimization.
These networks collectively establish the foundation upon which the digital economy operates. Their continued evolution, security enhancements, and developer-friendly improvements directly determine Web3’s mainstream viability. Whether through technological innovation, ecosystem expansion, or institutional adoption, Layer-1 networks will continue shaping cryptocurrency’s trajectory throughout 2025 and beyond.
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The Essential Layer-1 Blockchain Guide: 15 Projects Reshaping Web3 in 2025
Understanding the Foundation: What Makes Layer-1 Networks Critical
The blockchain ecosystem relies on first-layer networks as its fundamental infrastructure. These base-layer protocols form the bedrock where all transactions achieve finality and security through decentralized consensus. Unlike second-layer solutions that build atop existing chains to improve transaction throughput, Layer-1 networks operate as sovereign systems with independent security models and validation mechanisms.
The uniqueness of Layer-1 blockchains stems from five core characteristics:
Decentralization & Immutability: No single entity controls these networks. Once transactions are recorded, they remain permanent and verifiable by all participants, creating an auditable ledger of activity.
Independent Operation: Layer-1 systems execute transactions and smart contracts autonomously, employing various consensus approaches such as Proof of Work (PoW) or Proof of Stake (PoS) to maintain network integrity without external dependencies.
Native Economic Models: Most Layer-1 blockchains feature native tokens that serve multiple functions—covering transaction costs, enabling network staking, and granting governance rights to token holders.
Developer Infrastructure: These networks provide a stable foundation for building decentralized applications, with many accumulating decades of development tools, libraries, and best practices.
Strong Network Effects: Established Layer-1 platforms benefit from substantial user bases and developer ecosystems, creating compounding value as more participants join. Additionally, Layer-2 solutions depend on Layer-1 networks for final transaction settlement and security guarantees.
Bitcoin (BTC): The Original Standard
Current Market Snapshot:
Bitcoin remains the foundational cryptocurrency, introduced by the pseudonymous Satoshi Nakamoto in 2009. Its primary appeal lies in proven security through Proof of Work consensus and its fixed 21 million supply cap, earning it the designation of “digital gold” in investor portfolios.
Throughout 2023-2024, Bitcoin’s ecosystem expanded significantly beyond peer-to-peer payments. The introduction of Ordinals protocol enabled native NFT minting directly on the blockchain, spawning new token classes like ORDI, SATS, and RATS. Layer-2 solutions such as Stacks emerged to address Bitcoin’s smart contract limitations, opening new possibilities for complex financial instruments and decentralized finance applications.
The Taproot Assets protocol, released by Lightning Labs, further demonstrated Bitcoin’s versatility by using UTXO script data to represent various digital assets. These developments underscore Bitcoin’s continuous evolution and its role as an immutable settlement layer for the broader crypto ecosystem.
Ethereum (ETH): The Dominant Application Layer
Current Market Snapshot:
Ethereum’s ecosystem encompasses over 3,000 active decentralized applications and commands the largest developer community in cryptocurrency. Since its 2015 launch by Vitalik Buterin and collaborators, Ethereum transcended its original role as a digital currency platform to become the dominant infrastructure for DeFi protocols, NFT marketplaces, and Web3 applications.
The network’s strength derives from its early-mover advantage and the robust tooling ecosystem developed by its community. In 2023-2024, Ethereum progressed toward Ethereum 2.0 through multiple milestones. The transition to full Proof of Stake consensus reduced environmental impact while enhancing network security. Layer-2 scaling solutions—particularly rollup technologies—achieved significant maturity, dramatically reducing transaction fees while maintaining Ethereum’s security guarantees.
Looking forward, developers anticipate continued improvements in scalability through Ethereum’s sharding roadmap, alongside deeper integration with alternative blockchains. This layered architecture balances security, decentralization, and transaction speed, establishing a model increasingly adopted across the industry.
Solana (SOL): High-Performance Execution
Current Market Snapshot:
Solana distinguishes itself through parallel transaction processing and innovative consensus combining Proof of History (PoH) with Proof of Stake (PoS). This architecture enables throughput exceeding 65,000 transactions per second with minimal latency, making Solana attractive for DeFi protocols and high-frequency applications.
The SOL token functions as the network’s currency—paying transaction costs, securing the network through staking, and enabling governance participation. In 2023, Solana’s ecosystem demonstrated remarkable vibrancy. The Solana Improvement Documents (SIMDs) formalized a protocol-enhancement proposal process, with 79 SIMDs submitted since inception. The Firedancer upgrade promises further performance gains for validators.
The ecosystem expanded across multiple verticals: Marinade Finance and Jito leading liquid staking solutions, Jupiter establishing a dominant DEX routing engine, and the Solana Mobile Saga smartphone creating a consumer-facing Web3 entry point. Strategic partnerships with Google Cloud and AWS enhanced network transparency and node deployment accessibility. The BONK airdrop campaign to early adopters generated significant community engagement and demonstrated the network’s commitment to ecosystem incentivization.
BNB Chain (BNB): The Exchange-Backed Ecosystem
Current Market Snapshot:
Initially launched as Binance Smart Chain in September 2020, BNB Chain has evolved into an independently-focused blockchain platform. The dual-chain architecture enables seamless asset transfers between networks, supporting DeFi protocols, NFT platforms, and gaming applications.
With over 1,300 active decentralized applications as of late 2023, BNB Chain’s ecosystem rivals many competing Layer-1 networks. The Proof of Staked Authority (PoSA) consensus mechanism delivers significantly lower transaction costs and faster finality compared to traditional proof-of-stake systems.
Throughout 2023-2024, BNB Chain formalized its rebranding, signaling broader ambitions beyond exchange integration. The network introduced a separate PoS staking chain, enhancing security and validator decentralization. Cross-chain bridge expansions improved interoperability with alternative blockchain ecosystems. Looking toward 2025, the community anticipates Layer-2 integration and potential sharding implementations, alongside strategic partnerships with emerging DeFi and NFT projects.
Avalanche (AVAX): Rapid Finality and Throughput
Current Market Snapshot:
Avalanche combines classical and Nakamoto consensus elements, achieving transaction finality in under two seconds. This consensus innovation, coupled with the AVAX token’s multi-functional role (transaction fees, staking, governance), positions Avalanche as a compelling alternative for performance-sensitive applications.
During 2023, Avalanche’s network activity surged notably. The C-Chain recorded 3.07 million transactions across a five-day period, with inscription-related transactions comprising over 50% of network activity. This activity spike elevated network fees substantially—users collectively paid $13.8 million for inscription minting and transfers in a single week. Concurrently, the network’s AVAX burn rate increased due to heightened transaction volume and inscription proliferation.
By November 2023, the Avalanche C-Chain achieved a record 2.3 million transactions in a single day, compared to the historical average of 450,000. The Primary Network processed over 40 transactions per second, with block finality occurring in approximately one second. Avalanche’s partnership with J.P. Morgan’s blockchain initiative (Onyx) demonstrated institutional validation of the network’s technology and economic model.
The Open Network (TON): Telegram’s Vision for Scale
Current Market Snapshot:
Originally conceptualized by Telegram co-founders Nikolai and Pavel Durov, The Open Network (TON) evolved into a community-driven Layer-1 platform after initial regulatory challenges. The network’s multi-level architecture incorporates sharding to manage high transaction volumes efficiently.
The Toncoin token serves as the network’s primary currency—facilitating transactions, governance, and network validation through staking mechanisms. In March 2024, Telegram announced a pivotal initiative: distributing 50% of its advertising revenue to content creators via the TON blockchain, paid in Toncoin. Following this announcement, Toncoin surged 40% in value, demonstrating the cryptocurrency’s practical utility within a consumer-facing platform.
This development signals potential for massive mainstream adoption if Telegram continues integrating TON-based services. The network’s ecosystem now encompasses social platforms, DeFi services, and NFT marketplaces, creating an increasingly interconnected Web3 environment. Ongoing speculation regarding Telegram’s potential initial public offering could further catalyze TON’s utility and market perception.
Polkadot (DOT): Interoperability Through Multi-Chain Architecture
Current Market Snapshot:
Polkadot’s foundational innovation lies in its Inter-Blockchain Communication (IBC) protocol, enabling independent blockchains (parachains) to transfer messages and value while maintaining sovereign security models. This interoperability focus distinguishes Polkadot from monolithic Layer-1 designs.
The DOT token functions across governance, staking for network security, and parachain bonding mechanisms. Throughout 2023, Polkadot achieved notable milestones: March 2023 marked 19,090 developer contributions on GitHub, setting a community engagement record. The introduction of parathreads provided cost-effective blockchain hosting, while Next-Generation Scheduling enhanced network scalability and flexibility.
The announced Polkadot 2.0 upgrade promises substantial improvements in governance responsiveness, scalability, and cross-chain functionality. Staking participation increased 49% following Nomination Pools’ deployment, democratizing network participation. Integration of major stablecoins (particularly USDC via Circle) and the Rocco Testnet launch optimized transaction processing and user experience. Ecosystem expansion included five new parachains and heightened institutional participation through services like Zodia Custody.
Cosmos (ATOM): Interchain Security and Independent Chains
Current Market Snapshot:
Cosmos addresses scalability and interoperability through a decentralized network of independent blockchains utilizing the Inter-Blockchain Communication (IBC) protocol. This architecture allows constituent chains to maintain sovereignty while participating in a broader ecosystem.
The ATOM token secures the network through staking and enables governance participation. The Cosmos Hub experienced significant growth during 2023-2024, with daily transactions averaging 500,000 and ATOM trading volume reaching 20 million units. The Theta upgrade introduced Interchain Accounts, enhancing cross-chain transaction capabilities, while the Rho upgrade brought Liquid Staking and NFT module support, expanding network functionality.
The Cosmos Hub 2.0 whitepaper outlined a renewed vision for the network’s architecture and ATOM’s evolving role. The Interchain Foundation allocated $26.4 million for Interchain Stack development in 2024, signaling confidence in the ecosystem’s trajectory. Recent developments—including dYdX’s migration to Cosmos and Noble’s USDC integration—demonstrate growing institutional and protocol-level participation, pointing toward substantial capital inflows and further ecosystem expansion.
Internet Computer (ICP): Decentralized Cloud Computing
Current Market Snapshot:
The Internet Computer, developed by the DFINITY Foundation, fundamentally reimagines blockchain infrastructure by enabling smart contracts and complete software systems to operate entirely on-chain within a “serverless cloud computing” environment.
The ICP token facilitates transaction processing, smart contract execution, and network participant rewards while enabling governance through the Network Nervous System (NNS) protocol. Throughout 2023, ICP’s ecosystem underwent substantial technical advancement. Websocket integration enabled real-time interactive applications, expanded stable memory accommodated more complex smart contracts, and direct Bitcoin network integration streamlined cross-chain transactions.
The Service Nervous System (SNS) enabled permissionless DAO token issuance, potentially accelerating decentralized organization participation. The DFINITY Foundation’s grant programs stimulated ecosystem growth, while organic expansion within community projects, social media platforms, and NFT trading marketplaces reflected increasing adoption. These developments position Internet Computer as a viable alternative to traditional cloud infrastructure for decentralized applications.
Emerging Performers: High-Growth Layer-1 Networks
Kaspa (KAS): GHOSTDAG Innovation
Current Snapshot:
Kaspa implements the GHOSTDAG consensus protocol, enabling rapid block creation and near-instantaneous transaction finality. The transition to Dag Knight (an evolution of GHOSTDAG) and rewriting from GoLang to Rust unleashed substantial performance improvements.
The KAS token reached a staggering 1,800% valuation increase in 2023, reflecting growing ecosystem interest. Development of a high-performance mobile wallet addressed cryptocurrency accessibility demands. Enhancements enabling peer-to-peer communication for archival nodes extended historical data availability. Ongoing initiatives focus on establishing Kaspa as a fast, scalable, Proof-of-Work Layer-1 foundation for smart contracts and decentralized applications.
Sei (SEI): DeFi-Focused Performance
Current Snapshot:
Sei represents a specialized Layer-1 design optimized for decentralized finance. The network features a native matching engine and optimized order book functionality, reducing latency for DEX operations and other financial protocols.
The SEI Ecosystem Fund expanded to $120 million following a $50 million contribution from Foresight Ventures, supporting diverse Web3 initiatives across NFTs, gaming, and DeFi. The growth strategy emphasized Asian market penetration, particularly India through partnerships like Graviton. Chain-level optimizations enhanced DEX and trading application performance, establishing Sei as an attractive development platform for finance-focused projects.
Sui (SUI): Parallel Execution Architecture
Current Snapshot:
Sui’s innovative architecture enables parallel transaction execution rather than sequential processing, substantially improving throughput. The Move programming language provides enhanced security and flexibility for smart contract developers.
Post-mainnet launch and major exchange listings, Sui demonstrated capability by processing 65.8 million daily transactions and achieving $188 million TVL at its peak. The zkLogin protocol revolutionized dApp access through Web 2 social accounts with privacy enhancements. The TurboStar program on Turbos DEX accelerated ecosystem project growth through fundraising support and zero commission incentives for Sui-based projects.
Aptos (APT): Scalable Execution Through Parallelization
Current Snapshot:
Aptos demonstrates exceptional technical execution through its Move programming language and parallel transaction processing engine. The network achieved $342 million TVL and is backed by over $400 million in funding from prominent investors including Tiger Global and PayPal Ventures.
Network activity reached hundreds of thousands of daily transactions, with sustained new user growth. Strategic partnerships with Sushi (DeFi), Coinbase (payment integration via Petra wallet), and entertainment entities (Microsoft, NEOWIZ, MARBLEX) enriched the ecosystem. The introduction of a Digital Asset Standard expanded real-world asset applications, while infrastructure upgrades including the Indexer and MSafe’s multi-signature solution enhanced user experience.
Kava (KAVA): Cosmos-Based DeFi Infrastructure
Current Snapshot:
Kava uniquely combines the Cosmos SDK’s scalability with EVM compatibility, positioning itself as a hub for decentralized finance applications. The network operates 110+ active dApps across a $250 million TVL ecosystem.
The native USDX stablecoin facilitates lending and borrowing without centralized oracle dependence. Recent Kava upgrades (Kava 12, 13, 14) enhanced Cosmos DAO flexibility, network scalability, and USDt minting capabilities. The “Kava Tokenomics 2.0” upgrade transitioned KAVA to fixed supply, fostering scarcity dynamics. A community-owned Strategic Vault with $300 million in assets demonstrates commitment to decentralization and value distribution.
ZetaChain (ZETA): True Omnichain Architecture
Current Snapshot:
ZetaChain revolutionizes interoperability as the first truly “omnichain” Layer-1 network, enabling seamless interaction between diverse blockchain architectures. Omnichain smart contracts facilitate unprecedented cross-chain functionality.
Since March 2023’s mainnet launch, ZetaChain achieved 1 million testnet users across 100+ countries, processed 6.3 million cross-chain transactions, and supported 200+ testnet dApps. Strategic partnerships with Ankr Protocol accelerated Web3 infrastructure access, while collaborations with BYTE CITY and Ultiverse expanded social entertainment and gaming applications. A $27 million funding round supports ecosystem interoperability expansion.
Layer-1 and Layer-2: A Symbiotic Evolution
The blockchain technology landscape demonstrates the complementary nature of first-layer and second-layer solutions. While Layer-2 protocols enhance transaction speed and reduce costs, Layer-1 networks provide the immutable settlement layer and security guarantees upon which all scaling solutions depend.
This symbiotic relationship drives continuous technological advancement. Improvements in Layer-1 infrastructure—such as Ethereum’s planned sharding implementation—directly benefit Layer-2 performance. Conversely, successful Layer-2 deployments inform Layer-1 protocol evolution. This dual-layer approach will likely persist as blockchain technology achieves mainstream adoption, requiring balanced solutions that don’t sacrifice decentralization for speed.
Conclusion: Layer-1 Networks as Strategic Infrastructure
As 2025 unfolds, Layer-1 blockchains remain central to cryptocurrency’s value proposition. Each network offers distinct attributes—from Bitcoin’s unmatched security heritage to Solana’s transaction throughput, Avalanche’s rapid finality, and emerging networks’ specialized focus on interoperability or DeFi optimization.
These networks collectively establish the foundation upon which the digital economy operates. Their continued evolution, security enhancements, and developer-friendly improvements directly determine Web3’s mainstream viability. Whether through technological innovation, ecosystem expansion, or institutional adoption, Layer-1 networks will continue shaping cryptocurrency’s trajectory throughout 2025 and beyond.