The 2025 Layer 1 Crypto Ecosystem Outlook: Market Performance and Development Trends of 15 Mainstream Projects

In the evolution of blockchain technology, Layer 1 (base layer) blockchains have always played a crucial role. These underlying networks bear the security guarantees and consensus mechanisms of the entire crypto ecosystem. From Ethereum’s transition to proof of stake to the rise of eco-friendly public chains, innovations in Layer 1 continue to drive the development of the industry. This article will analyze the latest performance, ecological progress, and investment opportunities of 15 mainstream Layer 1 projects.

Understanding the Core Value of Layer 1 Blockchains

What is a Layer 1 Blockchain?

Layer 1 blockchain (also known as the base layer) is the core network for finalizing and recording transactions. Unlike Layer 2 solutions built on existing blockchains to improve scalability, Layer 1 protocols are independent network systems with their own consensus mechanisms and security models. These networks ensure decentralized, secure, and transparent transaction processing and are the foundation of the digital asset era.

Unique Advantages of Layer 1

As the infrastructure of the blockchain ecosystem, Layer 1 networks offer multiple advantages:

Security and Trustworthiness: Layer 1 ensures no single entity controls the network through decentralized design, with transactions being permanent and accurate, and all activities transparent and auditable.

Independent Operation: These networks independently execute transactions and smart contracts, using proof of stake or proof of work consensus mechanisms to maintain network integrity.

Economic Incentive System: Most Layer 1s have native tokens used to pay transaction fees, participate in proof of stake, and governance decisions, reinforcing the network’s economic cycle.

Ecological Infrastructure: A strong developer community and extensive integrations make Layer 1 an ideal platform for building decentralized applications.

Network Effect Advantages: Mature Layer 1 projects benefit from network effects, with user growth directly increasing network value and utility.

Highlights of Leading Layer 1 Projects in 2025

Based on project popularity, market cap, on-chain activity, and native token performance, the following 15 projects are worth close attention:

1. Solana (SOL): Benchmark for High-Speed Transactions

Key Data

• Total Value Locked (TVL): $3.46 billion
• SOL Market Cap: $76.42 billion
• 1-Year Performance: -37.38%

Solana, with its innovative Proof of History consensus mechanism combined with proof of stake, has become a representative of high throughput and low cost. Its unique consensus design allows Solana to handle extremely high transaction speeds, making it a popular choice for DApp developers.

In terms of ecosystem development, Solana achieved significant milestones in 2023: the launch of Solana Improvement Proposals (SIMDs) formalized the process for developers to submit protocol improvements, with 79 SIMD documents submitted. The Firedancer validator upgrade aims to significantly boost transaction processing speed, with over 2000 nodes securing the network. Integration with Helium demonstrated Solana’s strong support for decentralized systems.

The prosperity of liquidity and staking protocols like Marinade Finance and Jito, along with the refinement of the Jupiter DEX routing engine, has made Solana’s DeFi ecosystem increasingly complete. Collaborations with Google Cloud and AWS enhanced network transparency. The launch of Solana Mobile Saga and Helium Mobile further expanded the ecosystem boundaries.

2. Avalanche (AVAX): Fast Confirmations in a Multi-Chain System

Key Data

• TVL: $1.5 billion
• AVAX Market Cap: $6.14 billion
• 1-Year Performance: -66.51%

Avalanche, as a high-performance Layer 1, saw its C-Chain hit a record of 3.07 million transactions in 2023. Its innovative consensus mechanism combines classical consensus with Nakamoto consensus elements, providing a perfect balance of security, scalability, and decentralization.

Notably, inscriptions account for over 50% of network transactions, with users paying $13.8 million in fees for inscription-related operations within five days. Rising network fees reflect increased demand for block space. On November 19, daily transaction volume exceeded 2.3 million, a significant leap from the average of 450,000 per day.

Further validation of Avalanche’s enterprise application potential came from its partnership with J.P. Morgan’s Onyx blockchain.

3. Bitcoin (BTC): The Foundation of Digital Assets

Key Data

• TVL: $1.1 billion
• BTC Market Cap: $1.85 trillion
• 1-Year Performance: -5.56%

As the first decentralized digital currency, Bitcoin has been a leader in Layer 1 since its inception in 2009. Its pioneering blockchain technology offers unparalleled security and immutability, and its limited supply of 21 million coins has earned it the nickname “digital gold.”

In 2023, Bitcoin’s ecosystem expanded notably. The introduction of the Ordinals protocol enabled NFTs to be directly minted on the Bitcoin chain, leading to innovative tokens like ORDI and SATS. Layer 2 solutions like Stacks addressed Bitcoin’s limitations in smart contracts. Taproot asset protocols utilize UTXO scripts to record various assets, showcasing Bitcoin’s potential as a multi-dimensional value storage infrastructure.

4. The Open Network (TON): Extending Telegram’s Ecosystem On-Chain

Key Data

• TVL: $145 million
• TON Market Cap: $21.9 billion
• 1-Year Performance: 169%

TON was initiated by Telegram’s founder and, after regulatory issues with the US SEC, was taken over by an independent developer community and the TON Foundation. Its multi-layer sharding structure enables the network to handle large-scale transactions.

In March 2024, Telegram announced that 50% of advertising revenue would be distributed to channel creators, paid via Toncoin on the TON blockchain. This decision led to a 40% increase in Toncoin’s value after the announcement, providing real-world application scenarios for the token. Telegram’s potential IPO could further boost Toncoin’s utility.

5. Internet Computer (ICP): Pioneer of Decentralized Cloud Computing

Key Data

• TVL: $88 million
• ICP Market Cap: $1.76 billion
• 1-Year Performance: -73.83%

Developed by the DFINITY Foundation, ICP aims to redefine the internet by hosting smart contracts and full systems on-chain, expanding blockchain capabilities. Its unique consensus mechanism supports high transaction throughput and scalability.

Major progress in 2023 included WebSocket integration for real-time applications, stable memory expansion for deploying more complex apps, and Canisters enabling secure HTTPS calls to Web 2.0 services, greatly broadening smart contract applications. Direct integration with Bitcoin simplified cross-chain transactions.

The launch of Service Nervous System (SNS) allows DAOs to issue governance tokens without permission. Growth in community projects like social media platforms and trading markets reflects vibrant ecological innovation.

6. Sei (SEI): High-Speed Chain Optimized for DeFi

Key Data

• TVL: $27 million
• SEI Market Cap: $804.25 million
• 1-Year Performance: -73.67%

Sei is a Layer 1 optimized for DeFi applications, with a native matching engine that significantly reduces DEX latency. This innovation improves trading efficiency by decreasing confirmation times.

Ecologically, Sei’s ecosystem fund has grown to $120 million, including a $50 million investment from Foresight Ventures. The fund supports Web3 applications in NFT, gaming, and DeFi sectors. Sei also plans to deepen development in Asia-Pacific markets, leveraging regional tech maturity and high crypto adoption. Strategic partnerships like Graviton strengthen regional expansion.

7. Sui (SUI): Emerging Public Chain with High Throughput

Key Data

• TVL: $557 million
• SUI Market Cap: $6.39 billion
• 1-Year Performance: -68.14%

Sui stands out with its architecture designed for high throughput and scalability. The Move programming language offers enhanced security and flexibility, making it attractive for developers.

In 2023, Sui’s strategic token reallocation (157 million SUI tokens) promoted community and DeFi development. Listing on major exchanges after mainnet launch gained rapid attention. Daily transaction volume once hit 65.8 million, with TVL reaching $188 million, placing it among the top 10 public chains globally.

Innovative zkLogin feature addresses user privacy, enabling identity verification via Web 2.0 social accounts. Turbos DEX’s TurboStar project supports ecosystem growth through funding and zero-fee trading.

8. Aptos (APT): Parallel Execution for High Efficiency

Key Data

• TVL: $342 million
• APT Market Cap: $3.8 billion
• 1-Year Performance: -27%

Aptos focuses on providing high scalability, reliability, and usability for decentralized applications. The combination of Move language and parallel execution engine enables excellent transaction speed and throughput.

In 2023, Aptos secured over $400 million in funding from notable investors including Tiger Global and PayPal Ventures. The security features of Move and its parallel execution capabilities lay a solid foundation for application development. Collaborations with Sushi, Coinbase Pay, Microsoft, NEOWIZ, and others expanded its ecosystem. New standards for digital assets open new pathways for real-world asset on-chain applications.

9. Polkadot (DOT): Coordinator of Multi-Chain Interoperability

Key Data

• TVL: $230 million
• DOT Market Cap: $3.51 billion
• 1-Year Performance: -72.34%

Polkadot serves as a multi-chain ecosystem coordinator, enabling trustless interaction between different blockchains through its unique parachain architecture. Cross-chain communication is its core advantage.

In 2023, Polkadot’s GitHub contributions reached a monthly record of 19,090 commits. Parallel threads provide lower-cost access to blockchains, and next-generation scheduling optimizes network scalability. The launch of Polkadot 2.0 signals major upgrades in scalability, governance, and interoperability.

The introduction of staking pools increased participation by 49%, offering more users opportunities to secure the network. Integration of Circle’s USDC and the launch of the Rocco testnet further enhance network functionality.

10. Cosmos (ATOM): Infrastructure for Cross-Chain Communication

Key Data

• TVL: $1.25 million
• ATOM Market Cap: $1.11 billion
• 1-Year Performance: -68.70%

Cosmos enables value and data exchange between different blockchains via its Inter-Blockchain Communication (IBC) protocol, while maintaining each chain’s sovereignty. This design makes it a leading modular blockchain solution.

Ecological development includes introducing cross-chain security mechanisms to enhance safety for smaller blockchains. Cosmos Hub remains active, with an average of 500,000 daily transactions. Upgrades like Theta add cross-chain account functions, and Rho introduces liquidity staking and NFT modules, expanding network capabilities.

A $26.4 million annual grant from the Interchain Foundation supports ongoing ecosystem development. Migration of dYdX and the integration of Noble’s USDC inject new vitality into the hub’s prospects.

11. Ethereum (ETH): The Absolute Leader in DApp Ecosystem

Key Data

• TVL: $49 billion
• ETH Market Cap: $382.53 billion
• 1-Year Performance: -13.29%

Ethereum boasts the largest developer community and over 3,000 active DApps, holding an absolute advantage in Layer 1. Since its launch in 2015 by Vitalik Buterin and others, Ethereum has evolved from a simple digital currency platform into an ecosystem hub for decentralized applications, NFTs, and DeFi.

Its core strengths include first-mover advantage and mature ecosystem. Developers contribute a wealth of tools, frameworks, and protocols, continuously driving industry innovation. In 2023, key focuses included strengthening Layer 2 scaling solutions, with rollups excelling in reducing costs and increasing throughput.

Looking ahead to 2024, the full implementation of Ethereum 2.0 will further improve scalability and energy efficiency. The complete transition to proof of stake is expected to reduce environmental impact, attracting ESG-focused investors. Deepening Layer 2 solutions and cross-chain integrations will make Ethereum’s ecosystem more interconnected and user-friendly.

12. BNB Chain (BNB): Core Support for Exchange Ecosystem

Key Data

• TVL: $5.2 billion
• BNB Market Cap: $123.82 billion
• 1-Year Performance: +26.07%

BNB Chain (formerly Binance Smart Chain), launched by the world’s largest crypto exchange Binance in September 2020, features a dual-chain architecture allowing seamless asset transfer across different blockchains, supporting DeFi, NFTs, and gaming applications.

Compared to Ethereum, BNB Chain’s ecosystem is younger but growing rapidly, with over 1,300 active DApps. Its native token BNB is widely used within and outside the Binance ecosystem. The PoSA consensus mechanism offers faster and cheaper transactions than Ethereum’s current state.

BNB Chain’s compatibility with Ethereum development tools and DApps reduces migration costs, attracting many Ethereum-based projects. In 2023, the project rebranded as BNB Chain, emphasizing broader development goals and focus on DeFi and NFTs. The launch of an independent PoS chain enhances security and decentralization. Expansion of cross-chain bridges improves interoperability with other blockchains.

Expectations for 2024 include further scalability improvements, Layer 2 integrations, and sharding technology applications to increase network capacity. Strategic partnerships and new DeFi/NFT projects will continue to energize the ecosystem.

13. Kava (KAVA): EVM-Compatible DeFi Hub

Key Data

• TVL: $193 million
• KAVA Market Cap: $90.68 million
• 1-Year Performance: -84.78%

Kava combines Cosmos SDK’s scalability and interoperability with EVM compatibility through its “cross-chain” architecture, enabling Ethereum DApps to leverage Kava’s features. This makes it a hub for innovative DeFi applications.

While smaller in scale compared to Ethereum and other mature projects, Kava’s ecosystem is growing rapidly, with over 110 active DApps. Its native token KAVA is used for governance and proof of stake. Kava utilizes Cosmos’s Tendermint BFT consensus for high security. Its USD-pegged stablecoin USDX supports decentralized lending without relying on centralized oracles.

The Kava 14 upgrade introduced the ability to mint USDT directly on Cosmos, with strategic partnerships enhancing liquidity. Throughout 2023, Kava 12 and Kava 13 strengthened support for Cosmos DAO, ecosystem expansion, and user experience. The “Kava Tokenomics 2.0” upgrade with a fixed supply aims to promote adoption and scarcity. The community treasury (assets over $300 million) reflects a commitment to deeper decentralization and community value growth.

14. ZetaChain (ZETA): New Direction in Cross-Chain Interoperability

Key Data

• TVL: $3.25 million
• ZETA Market Cap: $92.79 million
• 1-Year Performance: -87.27%

ZetaChain aims to create a truly “pan-chain” Layer 1 that can connect and interact with any blockchain, regardless of architecture or smart contract features. This vision makes asset transfer, data exchange, and cross-chain smart contract execution possible.

Launched in March 2023, ZetaChain is a relatively new project with an ecosystem of over 20 active DApps and partnerships with Chainlink, The Sandbox, and others. Its core advantage is the ability to deploy cross-chain smart contracts, enabling seamless interaction across different blockchains.

Milestones in 2023 include over 1 million testnet users across 100+ countries, processing more than 6.3 million cross-chain transactions, and deploying over 200 DApps, demonstrating rapid ecosystem growth. Collaborations with Ankr Protocol accelerate Web3 infrastructure accessibility. Partnerships with BYTE CITY and Ultiverse introduce cross-chain features into social entertainment and gaming, expanding ZetaChain’s application scope. The project successfully raised $27 million to enhance cross-chain interoperability.

Layer 1 and Layer 2: Co-evolving Future

The ongoing development of Layer 1 and Layer 2 solutions reflects the dynamic evolution of blockchain technology. Layer 2 addresses scalability and speed issues, complementing Layer 1, which continues to serve as the foundation, ensuring security, decentralization, and infrastructure robustness.

This relationship is symbiotic: Layer 2 relies on Layer 1’s security and decentralization to enhance performance. Improvements in Layer 1 (such as Ethereum’s sharding) can boost Layer 2 performance. Conversely, successful Layer 2 solutions also inspire and drive upgrades in Layer 1. This dual-layer development strategy is expected to continue, as blockchain seeks broader mainstream adoption by balancing security, decentralization, scalability, and speed.

Summary

As 2025 approaches, Layer 1 blockchains remain at the forefront of the crypto revolution. Continuous innovation and adaptation of these networks are vital to meet the increasingly diverse and expanding demands of the digital world. From Solana’s lightning-fast transactions to Bitcoin’s unmatched security, each Layer 1 project contributes its unique attributes to the vibrant blockchain ecosystem.

In this ecosystem, Layer 2 enhances performance but fundamentally depends on Layer 1’s security and decentralization. This synergy ensures balance: Layer 1 provides a secure, decentralized foundation, while Layer 2 offers scalability and speed optimizations. For investors and participants, understanding these core characteristics of Layer 1 crypto projects is crucial for making informed decisions in the 2025 market.