# What is Layer 1? Detailed Guide to Base Blockchains and Investment Opportunities 2026

What is Layer 1? This is a question that every cryptocurrency investor needs to understand. Layer 1 blockchain refers to the foundational blockchain networks that operate independently, capable of processing and finalizing transactions on their own without support from other networks. Each Layer 1 blockchain usually has its own native token, used to pay transaction fees and maintain system operations. Additionally, they serve as infrastructure for other applications, protocols, and networks built on top, including Layer 2 solutions and various dApps.

Performance Differences: Comparing Transaction Processing Capabilities of Layer 1

Processing performance is one of the key factors influencing the development of Layer 1 blockchains. Bitcoin, with its basic blockchain architecture, achieves only about 2.83 to 4.17 transactions per second (TPS), as each block contains around 1,700 transactions but takes 10 minutes to mine. Ethereum improves somewhat by creating a new block every 13 seconds with a gas limit of 30 million per block, but actual TPS is only around 11.8 due to higher gas requirements for smart contract transactions.

Newer generation Layer 1 blockchains have significantly advanced performance: Aptos reaches 160,000 TPS, Solana reaches 110,000 TPS, demonstrating remarkable progress in blockchain technology. These improvements address the limitations of early foundational blockchains, enabling broader applications in DeFi, NFTs, and decentralized financial services.

Investment Opportunities in Layer 1 Blockchains in the Current Era

Investing in Layer 1 blockchains offers safety combined with significant growth potential. As the foundational layer of the entire ecosystem, Layer 1 tokens often reflect the intrinsic value and long-term potential of the technology.

Currently, new Layer 1 projects like APT, SUI, and SEI are attracting community attention. Data from March 2026 shows: APT trading at $1.00 with a 24-hour volume of $1.30M; SUI at $0.97 with a trading volume of $6.36M; SEI at $0.06 with a volume of $670.45K. These projects represent the next steps in the development chain of Layer 1 blockchain, with features optimized for speed, security, and scalability.

Choosing which Layer 1 to invest in requires careful analysis of technical performance, application potential, and position within the global blockchain ecosystem. Layer 1 networks with high transaction speeds, low costs, and active developer communities will have a competitive advantage in the long term.