The Essential Layer 1 Protocols to Monitor as 2025 Unfolds

Understanding the Backbone: What Layer 1 Blockchains Deliver

At the core of blockchain technology lies Layer 1 infrastructure—the foundational networks where all transaction finality and data recording occur. These base-layer protocols operate independently with their own built-in security models and consensus mechanisms, distinguishing them fundamentally from secondary solutions that depend on them for settlement assurance.

What makes these primary blockchains so critical is their guarantee of decentralization, immutability, and transparency. No single entity controls the network, transactions become permanent once recorded, and all activities remain visible for community verification. Layer 1 protocols handle transaction processing and smart contract execution autonomously, employing mechanisms like Proof of Work or Proof of Stake to validate activities and maintain network integrity.

Most base-layer blockchains introduce native tokens serving multiple purposes—covering transaction costs, enabling network participation through staking, and facilitating governance decisions. This combination creates powerful network effects: as adoption grows, the value and utility of these ecosystems expand proportionally, positioning them as more resilient than secondary solutions which depend on Layer 1 networks for ultimate security confirmation.

The Current Market Landscape: 15 Projects Reshaping Layer 1

Bitcoin (BTC): Digital Money’s Unstoppable Foundation

Current Metrics:

• Price: $88,990
• Market Cap: $1.78 trillion
• 1-Year Performance: -10.48%

Bitcoin remains the undisputed pioneer—the first decentralized digital currency launched in 2009. Its revolutionary significance stems from pioneering blockchain technology that delivers unmatched security and permanence, coupled with its status as the most recognized and adopted cryptocurrency worldwide. Investors treat BTC as a value preservation instrument and medium of exchange, increasingly called “digital gold” owing to its capped 21-million supply and distributed architecture.

The halving event, occurring roughly every four years, systematically reduces mining incentives and creates scarcity for newly minted coins—a mechanism that continues reshaping market cycles. Recent developments have expanded Bitcoin’s capabilities significantly. The introduction of Ordinals technology enabled direct NFT minting on Bitcoin itself, spawning new token experiments including inscription-based assets. Layer 2 solutions constructed atop Bitcoin—such as Stacks—now support programmable contracts, DeFi applications, and derivative protocols like Atomicals, demonstrating Bitcoin’s evolving versatility without compromising its core security guarantees.

Ethereum (ETH): The Decentralized Applications Powerhouse

Current Metrics:

• Price: $2,980
• Market Cap: $359.95 billion
• 1-Year Performance: -14.67%

Ethereum has transcended its origins as a cryptocurrency to become the dominant platform for decentralized applications, NFTs, and financial services. Launched in 2015, it has built an unparalleled developer community contributing thousands of tools, frameworks, and protocols. The network now supports over 3,000 active applications in dApps, DeFi, and NFT spaces.

Ethereum’s competitive advantage stems from its early establishment and network effects—developers flock to build where others build, creating network effects. The ecosystem continues advancing through Layer 2 scaling technologies (rollups and sidechains) that dramatically reduce transaction expenses while preserving Ethereum’s security foundation. The network’s transition to Proof of Stake reduced environmental impact and enhanced institutional appeal. Looking forward, continued improvements in scalability, fresh Layer 2 integrations, and expanded cross-chain partnerships position Ethereum to deepen its ecosystem interconnectedness and user accessibility.

Solana (SOL): The High-Speed Specialist

Current Metrics:

• Price: $124.64
• Market Cap: $70.13 billion
• 1-Year Performance: -36.94%

Solana has distinguished itself as a high-throughput Layer 1 blockchain combining minimal transaction costs with exceptional processing speed. Its innovative consensus architecture—marrying Proof of History with Proof of Stake mechanisms—achieves performance levels that rival or exceed traditional financial infrastructure.

The SOL token powers transaction fees, contract execution, and network security through validator staking arrangements. Recent ecosystem developments highlight Solana’s maturation: the Firedancer upgrade initiative aims to dramatically accelerate validator processing capabilities, while network enhancements now support 2,000+ independent nodes ensuring security distribution. The ecosystem flourished with diverse project categories—memecoins generating substantial airdrop campaigns (BONK tokens), liquid staking protocols (Marinade Finance, Jito), decentralized exchanges (Jupiter, Raydium, Orca), and innovative applications spanning social media and gaming. Strategic partnerships with Google Cloud and AWS further strengthen infrastructure accessibility, while the Solana Mobile ecosystem expansion demonstrates ecosystem maturation.

BNB Chain (BNB): The Exchange-Native Ecosystem

Current Metrics:

• Price: $842.70
• Market Cap: $116.07 billion
• 1-Year Performance: +19.93%

Originally developed as Binance’s blockchain infrastructure, BNB Chain has evolved into a mature Layer 1 network operating in parallel with traditional finance bridges. The platform’s dual-chain architecture allows seamless asset migration, while its Proof of Staked Authority consensus mechanism delivers faster processing and lower costs compared to early Ethereum implementations.

The BNB token serves as the network’s operational fuel, enjoying extensive adoption across financial and gaming verticals. The ecosystem encompasses over 1,300 active applications covering DeFi, NFTs, and entertainment. The 2023 rebranding to BNB Chain signaled expansion beyond exchange integration toward broader blockchain leadership. Recent upgrades introduced separated Proof of Stake chains for governance and security enhancement, while expanded cross-chain bridges improve ecosystem interoperability. The 2024 roadmap emphasizes Layer 2 scaling implementation and potential sharding architecture, positioning BNB Chain for accelerated growth across decentralized finance and gaming segments.

Internet Computer (ICP): Decentralized Cloud Computing

Current Metrics:

• Price: $3.04
• Market Cap: $1.66 billion
• 1-Year Performance: -72.78%

The Internet Computer represents an ambitious reimagining of blockchain’s potential—transforming it from transaction settlement into distributed computing infrastructure capable of hosting entire applications on-chain. Developed by the DFINITY Foundation, ICP introduces a novel consensus architecture enabling substantial throughput and scalability, positioning the network as a decentralized alternative to conventional cloud providers.

ICP tokens facilitate contract processing, network participant rewards, and protocol governance through the Network Nervous System mechanism. The ecosystem advanced significantly with WebSocket integration enabling real-time interactive applications, expanded persistent memory accommodating complex programs, and direct Bitcoin integration bypassing intermediaries. New capabilities permit HTTPS communication reaching Web 2.0 systems, substantially expanding contract applications. The ecosystem organically expanded with community-driven social platforms, NFT marketplaces, and innovation initiatives funded through grants, demonstrating organic growth momentum despite recent price volatility.

Sui (SUI): The Parallel Execution Pioneer

Current Metrics:

• Price: $1.41
• Market Cap: $5.27 billion
• 1-Year Performance: -68.65%

Sui represents a novel blockchain architecture emphasizing high throughput and scalability for diverse decentralized applications. Its differentiation emerges through innovative consensus mechanics and the Move programming language, which prioritizes developer security and flexibility while enabling low-cost transaction processing at scale.

Post-mainnet launch and major exchange listings, Sui demonstrated its scalability credentials with record daily transaction volumes exceeding 65 million transactions and peak TVL surpassing $188 million, landing it in top-10 blockchain rankings. Revolutionary features like zkLogin transformed user onboarding by leveraging familiar Web 2.0 social accounts for private application access. The TurboStar initiative on Turbos Exchange accelerated ecosystem growth through development support, community awareness campaigns, and presale access arrangements. Strategic governance measures protect investor interests while offering zero commissions for native projects, fostering sustainable ecosystem expansion.

Aptos (APT): The Enterprise-Grade Blockchain

Current Metrics:

• Price: $1.70
• Market Cap: $1.27 billion
• 1-Year Performance: -82.23%

Aptos prioritizes scalability, reliability, and practical usability for decentralized applications through sophisticated architecture and proven team expertise backed by over $400 million in venture capital from prominent investors including Tiger Global and PayPal Ventures.

The APT token covers transaction expenses, enables network governance participation, and supports staking mechanisms. The network’s technological foundation—centered on the Move language and parallel transaction execution—delivers transaction speeds and throughput that exceed competing platforms. Strategic partnerships expanded capabilities: Sushi integration enhanced DeFi services, Coinbase Pay integration within Petra wallet simplified transactions, while collaborations with Microsoft, NEOWIZ, MARBLEX, and Lotte Group advanced gaming and entertainment verticals. Ecosystem innovations introduced new Digital Asset Standards for real-world applications, NFT notification infrastructure through specialized Indexers, and advanced multi-signature solutions from MSafe for enhanced security.

Polkadot (DOT): The Multi-Chain Coordinator

Current Metrics:

• Price: $1.73
• Market Cap: $2.85 billion
• 1-Year Performance: -76.92%

Polkadot reimagined blockchain architecture around multi-chain interoperability, enabling specialized blockchains to exchange messages and value without intermediaries while preserving their unique capabilities and security. The platform’s distinguishing strength lies in connecting and securing networks of specialized parachains through shared security mechanisms.

The DOT token enables governance participation, network security through staking, and parachain bonding mechanisms. The ecosystem experienced remarkable innovation with record GitHub contributions exceeding 19,000 in March 2023, driving network enhancements and security improvements. Parathreads introduced cost-efficient blockchain connectivity models, while Next-Generation Scheduling expanded network flexibility and scalability. The announced Polkadot 2.0 roadmap promised substantial advances across scalability, governance mechanisms, and interoperability dimensions. Staking participation surged 49% through new Nomination Pool mechanisms, broadening participation accessibility. Strategic integrations included Circle’s USDC stablecoin deployment, Rocco Testnet optimization, five new parachain additions, and institutional custody services, positioning Polkadot as a leading interoperability solution.

Cosmos (ATOM): The Blockchain Internet Protocol

Current Metrics:

• Price: $2.04
• Market Cap: $988.22 million
• 1-Year Performance: -70.63%

Cosmos addresses fundamental blockchain challenges—scalability constraints and interoperability fragmentation—through the Inter-Blockchain Communication protocol enabling diverse networks to interact while maintaining operational independence. This breakthrough positioned Cosmos as foundational infrastructure for multi-chain applications.

The ATOM token secures the network through staking and facilitates governance decisions. The ecosystem expanded substantially: Interchain Security enhanced security guarantees for smaller networks, while daily transaction volume on Cosmos Hub reached 500,000 with substantial ATOM trading activity reflecting growing adoption. Protocol upgrades introduced Interchain Accounts for enhanced cross-chain interactions, Liquid Staking mechanisms, and NFT modules. The Cosmos Hub 2.0 whitepaper outlined the token’s evolving role and Hub’s strategic direction. The Interchain Foundation’s $26.4 million 2024 investment allocation for Interchain Stack development, combined with institutional optimism regarding dYdX migration and Noble’s USDC integration, suggests accelerating capital influx and ecosystem expansion.

Avalanche (AVAX): The Fast Finality Network

Current Metrics:

• Price: Current market data shows AVAX remains a significant mid-cap Layer 1
• Market Cap: Approximately $13.4 billion range
• 1-Year Performance: Moderate gains reflecting network maturation

Avalanche distinguished itself through high-performance transaction processing, achieving finality in under two seconds—a critical advantage for financial applications. Its hybrid consensus architecture combining Classical and Nakamoto consensus elements delivers unmatched security and scalability combinations.

The AVAX token covers transaction fees, network security through staking, and consensus participation. The ecosystem experienced explosive growth as inscription tokens drove transaction volume surge—over 50% of network transactions involve inscription-related activity. This explosive demand drove block space scarcity, resulting in $13.8 million in transaction fees within five days during peak periods. The Avalanche C-Chain established new records with 3.07 million total transactions and peak daily transactions reaching 2.3 million, representing 5x increase over typical activity levels. Significant partnerships—including J.P. Morgan’s Onyx blockchain integration—demonstrated institutional recognition and utility across financial sectors. The surge drove substantial token burning through registration transactions, creating deflationary mechanics supporting long-term value dynamics.

The Open Network (TON): Telegram’s Blockchain Vision

The Open Network represents a Layer 1 platform originally conceptualized by Telegram founders, designed around scalability and user accessibility. After regulatory challenges requiring Telegram’s 2020 exit, TON Foundation and independent developer communities (NewTON) continued development, achieving remarkable ecosystem maturation.

The blockchain incorporates multi-level architecture with sharding to efficiently handle massive transaction volumes. Toncoin facilitates transactions, governance participation, and network validation through staking mechanisms. The ecosystem expanded organically to encompass diverse applications—social platforms, DeFi services, NFT marketplaces creating a robust development environment. Major ecosystem advancement occurred when Telegram announced 50% advertising revenue distribution to channel owners processed via TON blockchain in Toncoin, driving 40% value surge and establishing practical utility beyond speculative interest. Anticipated Telegram IPO developments could substantially enhance Toncoin’s ecosystem integration and utility perception, particularly if blockchain functionality integration accelerates across Telegram’s massive user base.

Additional Layer 1 Projects Gaining Momentum

Kaspa (KAS): Known for rapid transaction processing through GHOSTDAG consensus mechanism, KAS transitioned from GoLang to Rust, achieving unprecedented processing speeds. Though recent performance shows -61.98% annual decline, technical advancements including high-performance mobile wallets and increased block/transaction processing capacity demonstrate ongoing innovation commitment.

Sei (SEI): Purpose-built for decentralized finance, Sei specializes in order book optimization with native matching engines reducing latency for exchanges and financial protocols. The ecosystem fund swelled to $120 million supporting NFTs, gaming, and DeFi with emphasis on Asian market penetration and regional partnerships.

Kava (KAVA): Combining Cosmos SDK’s interoperability with EVM compatibility, Kava operates as a “co-chain” hub for innovative DeFi applications. Recent Kava 14 upgrade enables direct USDt minting on Cosmos, while tokenomics 2.0 introduced fixed token supply supporting adoption and scarcity dynamics. Community Strategic Vault exceeds $300 million in assets, demonstrating decentralization commitment.

ZetaChain (ZETA): Pioneering true omnichain architecture, ZetaChain connects any blockchain architecture enabling seamless asset transfers and cross-chain contract execution. Despite recent volatility, the platform surpassed 1 million testnet users across 100+ countries with 6.3 million cross-chain transactions and 200+ deployed dApps, demonstrating rapid ecosystem maturation.

The Symbiotic Evolution: Layer 1 and Layer 2 Dynamics

Layer 1 and Layer 2 solutions evolve interdependently, each strengthening the other. While Layer 2 solutions enhance performance through rollups and sidechains, they fundamentally depend on Layer 1 security and decentralization guarantees. Conversely, Layer 1 blockchains benefit from Layer 2 innovations informing architectural improvements—Ethereum’s anticipated sharding implementation represents exactly this feedback loop.

This dual-layer approach will continue defining blockchain evolution as mainstream adoption requires simultaneous security, decentralization, scalability, and speed—goals unattainable through single-layer approaches.

Making Sense of the 2025 Layer 1 Landscape

As 2025 progresses, Layer 1 protocols remain essential to cryptocurrency infrastructure, continuously evolving to address expanding digital economy demands. Each blockchain—from Bitcoin’s unmatched security to Solana’s exceptional speed, Ethereum’s developer ecosystem to Polkadot’s interoperability innovation—contributes unique capabilities to the broader blockchain ecosystem.

The fundamental relationship between Layer 1 and Layer 2 solutions ensures sustainable growth: Layer 1 provides secure, decentralized foundations while Layer 2 enables scalability and user experience improvements. This architecture enables blockchain technology to serve increasingly sophisticated use cases across finance, identity, supply chain, and entertainment sectors.