Do you know what L1 is? I just realized that many people are still quite unclear about this, so today I want to share some thoughts. Actually, the concept of L1 is quite simple – it refers to independent blockchains that operate autonomously like Bitcoin, Ethereum, Solana, or TON. These networks do not depend on any other solutions.

But the interesting part is that when major L1s, especially Ethereum, grow stronger, the L2 solutions built on them also start to develop rapidly. What is L2? Simply put, these are blockchains built on top of L1 to address limitations such as slow speed or high fees. Polygon, Arbitrum are typical examples.

There is also L0 – cross-network solutions connecting L1s and L2s with each other, like Polkadot or Atom. But if you want to understand more deeply what L1 is, just remember that it is the fundamental platform.

The fascinating thing is that when looking at daily transaction data or TVL of L2 networks, I can clearly see that they are growing very positively. Although both ETH and L2 tokens have not yet reached all-time highs, this momentum is truly impressive. Imagine what it will be like when they break old records.

During 2024-2025, the development of Ethereum and the entire surrounding L2 ecosystem is hard to underestimate. I am quite confident that this is just the beginning of a long-term upward trend. That’s why I am focusing on projects with solid fundamentals – from Ethereum itself, which makes up a large part of my portfolio, to applications and networks built on it. If you are also interested in this field, you can check out data on Gate to get a clearer picture.