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I just delved deeper into what layer 1 blockchain is and realized that this is a pretty important topic for anyone looking to invest in crypto.
In short, layer 1 blockchain refers to the foundational blockchains that operate as the main network within the ecosystem, capable of processing and finalizing transactions independently without relying on other networks. Each layer 1 has its own native token used for paying transaction fees and also serves as the infrastructure for other applications and protocols built on top.
The great thing is that current layer 1 blockchains have significantly improved compared to the first generation. For example, Bitcoin can handle about 2.83 TPS, Ethereum currently around 11.8 TPS, but Solana reaches 110,000 TPS, and Aptos up to 160,000 TPS. This difference is huge, and that’s why many new layer 1s are emerging to address these old limitations.
From an investment perspective, layer 1 blockchains offer safety along with attractive growth potential. The prices of layer 1 tokens tend to surge when the market rallies, especially for new projects with advanced technology.
I’m paying attention to some layer 1 coins in this cycle like APT, SUI, SEI. Currently, APT is around $0.90 (down 3.01% in 24h), SUI at $0.88 (up 1.35%), SEI at $0.05 (down 0.22%). Each project has its own unique features, and I will do a more detailed analysis soon.
As I often say, understanding what layer 1 blockchain is will help you make smarter investment decisions. Wishing everyone to hold many coins and hit big gains!