The Most Promising Layer-1 Protocols to Watch in 2025: A Dual Guide to Performance and Opportunities

Layer-1 protocols as the infrastructure of blockchain technology are undergoing unprecedented evolution. From Bitcoin’s security to Ethereum’s ecosystem prosperity, and to innovative attempts by emerging projects, each Layer-1 blockchain is answering the question “What kind of chain is most suitable for the future of Web3” in different ways.

What is the core competitiveness of Layer-1 Protocols?

Layer-1 protocols are fundamentally different from Layer-2 solutions. Layer-1 is an independent main chain that handles transaction finality and network security; Layer-2 relies on Layer-1’s security guarantees by aggregating transactions to improve speed.

Layer-1 protocols excel in several aspects:

Security and Decentralization - They do not depend on others’ chains, autonomously control consensus mechanisms and validation processes. No single point of failure risk, transaction finality is guaranteed.

Autonomy - Fully autonomous execution of transactions and smart contracts, supporting native token economies. Developers can build entire DeFi ecosystems on top.

Network Effects - The more users and applications, the greater the value and security of Layer-1 protocols. The more established their position, the higher their recognition.

Diverse Options - Different Layer-1 protocols are optimized for various needs; some pursue extreme speed, some strengthen security, others focus on application ecosystems.

Challengers of high-performance chains

Solana (SOL) - Speed Machine

Current Data - Price $121.55 | 1-year change -38.60% | Circulating Market Cap $68.39B

Solana remains the most aggressive player among high-performance Layer-1 protocols. Its Proof of History consensus mechanism enables transaction processing speeds far surpassing peers, with block times stabilized at 400 milliseconds.

In 2024, Solana’s network stability has significantly improved. The Firedancer upgrade is underway, aiming to increase validator throughput to 1 million TPS. Ecosystem-wise, liquid staking projects like Marinade Finance and Jito have become DeFi pillars, with Jupiter DEX trading volume ranking first on the chain.

Risk reminder: SOL has experienced multiple outages historically, and although the frequency has decreased, it remains a concern for investors.

Avalanche (AVAX) - Multi-Chain Alliance

Current Data - Price $12.24 | 1-year change -69.65% | Circulating Market Cap $5.26B

Avalanche’s uniqueness lies in its subnet architecture. The mainnet supports rapid deployment of custom subnets, each operating independently but sharing security. This design makes AVAX a preferred choice for enterprise-level Layer-1 protocols.

The C-Chain’s processing capacity continues to optimize, with daily transactions exceeding 2 million. Its partnership with JP Morgan’s Onyx indicates institutional recognition. Subnet ecosystem is expanding, but more killer applications are needed.

Kaspa (KAS) - DAG Experiment

Current Data - Price $0.04 | 1-year change -62.62% | Circulating Market Cap $1.20B

Kaspa adopts GHOSTDAG consensus, an innovative improvement over traditional DAG (Directed Acyclic Graph). Compared to linear blockchain structures, DAG allows higher transaction parallelism.

The network can process thousands of transactions per second, with confirmation times in seconds. Rewritten in Rust, performance is further optimized. As a relatively young Layer-1 protocol, Kaspa’s ecosystem is still in early stages, but its underlying technology attracts attention.

Digital Gold and Emerging Infrastructure

Bitcoin (BTC) - Eternal First

Current Data - Price $87.05K | 1-year change -12.46% | Circulating Market Cap $1738.19B

Bitcoin, as a pioneer of Layer-1 protocols, has evolved from a simple payment tool to a store of digital assets. Its network security is unmatched, with the widest node distribution.

The emergence of Ordinals and Inscriptions allows BTC to carry NFTs and on-chain data. Layer-2 solutions like Stacks bring smart contract capabilities to BTC, expanding its application boundaries. However, limited native smart contract ability remains a shortcoming.

The Open Network (TON) - Telegram’s Ambition

Current Data - Price $1.52 | 1-year change -74.45% | Circulating Market Cap $3.73B

Supported by Telegram, although the official backing is distant, community efforts continue to push forward. The key in 2024 is whether Telegram can truly integrate TON functions into its applications.

If Telegram decides to embed TON payments or points systems among its 800 million+ users, demand for TON will surge. The current ecosystem includes GameFi, DeFi, and NFT projects, but lacks star applications.

Developer-Friendly Layer-1 Protocols

Ethereum (ETH) - The Ecosystem Beacon

Current Data - Price $2.92K | 1-year change -16.54% | Circulating Market Cap $352.33B

Ethereum remains the strongest ecosystem among Layer-1 protocols. Its developer community, number of DApps, and TVL are leading.

The Dencun upgrade further reduces Layer-2 costs, and Blob technology improves rollup economics. In 2024, Ethereum’s strategy is to strengthen Layer-2 ecosystems rather than mainnet scaling. The mainnet maintains security and decentralization, while speed is delegated to Layer-2 — a pragmatic approach.

BNB Chain (BNB) - Exchange-Issued Chain

Current Data - Price $828.70 | 1-year change +17.91% | Circulating Market Cap $114.14B

BNB Chain exemplifies a successful Layer-1 protocol backed by an exchange. Over 1,300 DApps on-chain, TVL exceeds $5 billion.

Designed for compatibility with Ethereum, it lowers migration costs, with liquidity advantages in the Binance ecosystem. In 2024, focus will be on Layer-2 integration and cross-chain bridge optimization. Holding BNB is mainly driven by fee discounts on Binance, not solely by the chain itself.

Internet Computer (ICP) - On-Chain Cloud Computing

Current Data - Price $3.00 | 1-year change -73.14% | Circulating Market Cap $1.64B

ICP aims to be “Internet Computer,” not just a Layer-1 protocol, but an on-chain cloud service. Supports Canister containers to deploy full applications.

Its HTTPS Outcalls feature enables smart contracts to interact with Web2 services. Although innovative, adoption remains limited. Ecosystem projects mainly focus on social media and NFTs, with a lack of killer apps.

Professional Track Layer-1 Protocols

Sei (SEI) - DeFi Trading Dedicated Chain

Current Data - Price $0.11 | 1-year change -76.00% | Circulating Market Cap $710.13M

Sei is optimized for DEX and derivatives trading, with an embedded order book engine that reduces trading latency to milliseconds. Critical for fast-confirmation trades.

An ecosystem fund of $120 million has attracted DeFi projects like Rage Trade and Astroport. However, its TVL and trading volume are still far below competitors.

Sui (SUI) - Move Language Innovation

Current Data - Price $1.39 | 1-year change -69.17% | Circulating Market Cap $5.18B

Sui uses the Move programming language and a unique parallel execution engine, theoretically capable of handling tens of thousands of TPS. zkLogin allows users to access DApps with Web2 accounts (Google/Apple).

Its ecosystem supports GameFi, DeFi, and NFTs, but application appeal is limited compared to Solana. Peak TVL once reached $188 million, now retraced.

Aptos (APT) - Another Practice of Move Language

Current Data - Market Cap $3.8B (data slightly lagging)

Aptos also uses Move, with a similar but independently evolved tech stack from Sui. Backed by major investors like PayPal Ventures.

Strong parallel execution, but ecosystem maturity is less than Sui. Partnerships with Microsoft and Coinbase lay groundwork for long-term growth.

Interoperability and Cross-Chain

Polkadot (DOT) - Multi-Chain Coordinator

Current Data - Market Cap $9.6B (price data slightly lagging)

Polkadot is a representative of multi-chain Layer-1 protocols, focusing on enabling different chains to interact securely under a shared relay chain. Parachain auction model is innovative.

In 2024, the focus is on Polkadot 2.0 upgrade, enhancing governance and scalability. Staking participation is increasing, but application depth compared to single-chain ecosystems remains limited.

Cosmos (ATOM) - IBC Inter-Blockchain Communication

Current Data - Price $2.02 | 1-year change -70.89% | Circulating Market Cap $979.50M

Cosmos connects independent chains via IBC protocol. Its hub’s dominance has declined, but IBC standards are expanding. The migration of dYdX to an independent chain weakens hub importance but also demonstrates ecosystem vitality.

ZetaChain (ZETA) - True Cross-Chain

Current Data - Price $0.07 | 1-year change -89.01% | Circulating Market Cap $79.36M

ZetaChain claims to be the first “omnichain” Layer-1 protocol capable of connecting any blockchain. Its testnet in 2023 had over 1 million active users.

Its cross-chain smart contract capability is unique, but mainnet applications still need validation. Partnerships with Chainlink and The Sandbox support ecosystem development.

Kava - Hybrid Chain Model

Current Data - Price $0.08 | 1-year change -84.34% | Circulating Market Cap $81.26M

Kava combines Cosmos SDK and EVM compatibility, exploring a “co-chain” architecture. It retains Cosmos ecosystem advantages while running Ethereum applications.

USDX stablecoin provides DeFi infrastructure. Ecosystem size is relatively niche, mainly attracting Cosmos developers.

Future Trends of Layer-1 Protocols

By 2025, the competitive logic of Layer-1 protocols is changing:

No longer just about throughput - Besides TPS, actual applications, user experience, and developer support matter more. Solana’s value is not only speed but also ecosystem activity.

Rising importance of Layer-2 - Layer-1 protocols are gradually becoming security and settlement layers. Ethereum + Rollup combination has proven feasible, others are exploring.

Vertical application specialization - Beyond general-purpose chains, dedicated Layer-1 protocols for DeFi, GameFi, and NFTs have room to survive. Sei’s focus on trading has market potential.

Standardization of interoperability - Cross-chain competition intensifies, with standards like IBC and LayerZero evolving. There may be no absolute winner in the future, but rather ecosystem alliances of different Layer-1 protocols.

Investment perspective on choosing Layer-1 Protocols

Security first - Bitcoin and Ethereum are trusted due to historical validation and node distribution, suitable for conservative portfolios.

High risk, high reward - Emerging Layer-1 protocols like Solana, Sui, Kaspa have great growth potential but high volatility.

Track segment focus - For DeFi trading, Sei and Avalanche are worth watching; for cross-chain, ZetaChain and Cosmos are meaningful directions.

Ecosystem vitality - Focus on developer activity, application growth, and TVL trends rather than just coin price.

The competition among Layer-1 protocols has just begun. In 2025, more innovations will emerge, and some projects may fall behind. Investors need to understand each chain’s positioning rather than blindly chasing hot topics.