15 Must-Watch Layer 1 Crypto Networks in 2024: An In-Depth Analysis of the Layer 1 Crypto Ecosystem

What is a Layer 1 Blockchain?

Layer 1 blockchain is the foundational infrastructure of the crypto ecosystem, bearing the responsibilities of transaction validation, asset settlement, and security assurance. These independent blockchain networks have their own consensus mechanisms and security models, capable of completing transactions and executing smart contracts without relying on external systems.

Unlike second-layer solutions built on existing blockchains, Layer 1 is a fully autonomous network system. Through decentralization, security, and transparency, they ensure the stable operation of the digital asset world. From Bitcoin’s pioneering design to Ethereum’s evolution toward proof of stake, and emerging high-speed blockchains, Layer 1 blockchains are continuously exploring solutions to network limitations.

What are the Unique Advantages of Layer 1 Blockchains

As the core infrastructure of cryptocurrencies, Layer 1 blockchains offer multiple values:

• Decentralization and Security: No single entity controls the network; transactions are permanent and tamper-proof; all activities are transparent and traceable, enhancing trust mechanisms
• Independent Operation: Can execute transactions and smart contracts without external dependencies, providing full autonomy
• Native Token Economy: Most Layer 1 networks support native tokens used for paying fees, staking for security, and governance participation, increasing network utility
• Strong Network Effects: Mature Layer 1 projects have extensive developer ecosystems and application bases, better resisting network congestion than Layer 2
• Technological Maturity: Widely accepted and integrated into various systems, providing flexible building blocks for developers

While Layer 2 solutions can alleviate some congestion, they still depend on the security and final settlement capabilities provided by Layer 1. Both complement each other and jointly promote the development of the blockchain ecosystem.

15 Top Layer 1 Projects to Watch in 2024

1. Solana (SOL) - The Speed King

Solana Total Value Locked (TVL): $3.46 billion | Current SOL Price: $124.01 | 24h Change: +1.63% | 1-Year Change: -37.23% | Market Cap: $69.78B

Solana stands out in the Layer 1 crypto space for its high throughput and extremely low transaction costs. Its unique consensus mechanism combining Proof of History (PoH) with Proof of Stake (PoS) grants the network unparalleled speed and efficiency, making it a popular choice for decentralized applications.

The SOL token is mainly used for paying transaction fees, staking to maintain network security, and rewarding validators. Currently, Solana ranks among the top five cryptocurrencies by market cap.

In 2023, the Solana ecosystem achieved multiple breakthroughs. The Solana Improvement Documentation (SIMD) formalized protocol optimization processes, with 79 SIMD proposals. The Firedancer client upgrade, a major validator improvement, aims to significantly accelerate transaction processing. Network security is also being strengthened, with over 2,000 nodes and efforts to diversify validators. The Helium platform has been successfully integrated into Solana, demonstrating support for decentralized systems.

Ecosystem projects surged, including meme coins (BONK airdrop), liquidity staking protocols (Marinade Finance, Jito), NFT marketplaces, and unique applications like Raydium, Orca, and STEPN. Jupiter, a key DeFi participant, launched the JUP token and developed a world-class routing engine. Collaborations with Google Cloud and AWS further enhance network transparency and infrastructure usability. The release of the Solana mobile Saga and partnership with Helium Mobile reflect its commitment to expanding the ecosystem.

2. Avalanche (AVAX) - Performance Benchmark

Avalanche TVL: $1.5 billion | Current AVAX Price: $12.45 | 24h Change: +2.21% | 1-Year Change: -69.05% | Market Cap: $5.35B

Avalanche is a high-performance Layer 1 platform designed for decentralized applications and customizable blockchain networks. Its transaction processing speed is extremely fast, with confirmation in less than two seconds.

The network uses a unique hybrid consensus mechanism combining classical consensus and Nakamoto consensus elements, integrating security, scalability, and decentralization. The AVAX token is used for paying fees, staking, and participating in consensus, serving as the core of the ecosystem economy.

In 2023, Avalanche’s C-Chain hit a new high, with transaction volume reaching 3.07 million, indicating rapid adoption. Transactions related to inscriptions (Inscriptions) accounted for over half of total volume, pushing up network fees. Users paid $13.8 million in fees for inscription minting within five days. On November 19, the daily transaction volume hit a record of 2.3 million, far exceeding the previous average of 450,000. The ASC-20 token activity increased, with the mainnet processing over 40 transactions per second. Collaboration with JPMorgan’s Onyx platform showcased Avalanche’s potential for enterprise applications.

3. Kaspa (KAS) - Rising Star

Kaspa Total Value Locked: Data unavailable | Current KAS Price: $0.05 | 24h Change: +3.02% | 1-Year Change: -61.92% | Market Cap: $1.22B

Kaspa is a decentralized blockchain utilizing the GHOSTDAG consensus mechanism, enabling fast transaction processing and high scalability. Its high block generation rate and instant confirmation capabilities offer clear advantages over traditional architectures.

KAS tokens are used for paying transaction fees and incentivizing miners to maintain the system. In 2023, Kaspa’s development made significant progress. The consensus mechanism was upgraded to Dag Knight, greatly improving efficiency. The development language shifted from GoLang to Rust, leveraging modern hardware capabilities for unprecedented processing speed. A high-performance mobile wallet was launched to meet user needs.

Enhanced peer-to-peer communication features improved data retrieval for archival nodes. The native KAS token value surged over 1800% in 2023, reflecting strong market interest. Kaspa aims to become a fast, highly scalable Layer 1 PoW cryptocurrency, laying the foundation for smart contracts and decentralized applications.

4. Bitcoin (BTC) - Digital Gold

Bitcoin TVL: $1.1 billion | Current BTC Price: $88.63K | 24h Change: +1.33% | 1-Year Change: -10.82% | Market Cap: $1,769.66B

As the pioneer of cryptocurrencies, Bitcoin holds an absolute position in Layer 1. Launched in 2009, it introduced groundbreaking blockchain technology, offering high security and immutability. It is the most well-known and widely used crypto asset.

BTC is used for digital payments and investments, increasingly regarded as a reserve asset. Its fixed supply of 21 million and decentralized nature earned it the nickname “Digital Gold.” The halving events occurring roughly every four years reduce block rewards, increasing scarcity.

In 2023, Bitcoin’s ecosystem saw multiple innovations. The Ordinals protocol enabled NFTs to be directly minted on the Bitcoin chain, with tokens like ORDI and SATS. Second-layer solutions like Stacks addressed Bitcoin’s smart contract limitations. Protocols like Atomicals and ARC20 utilize the smallest units, satoshis, to represent tokens. Taproot Assets leverage UTXO script data to record various assets, showcasing Bitcoin’s multifunctionality. Infrastructure upgrades and developer incentives drive ecosystem growth.

5. The Open Network (TON) - Telegram Empowerment

TON TVL: $145 million | Current TON Price: $1.54 | 24h Change: +2.93% | 1-Year Change: -74.08% | Market Cap: $3.78B

The Open Network, conceived by Telegram founder, is a decentralized blockchain network aimed at high scalability and user-friendliness. Although its ICO raised $1.7 billion but was abandoned due to SEC regulatory issues, the project continues under the TON Foundation and NewTON community.

TON employs multi-layer architecture and sharding to improve efficiency, supporting large-scale transaction processing. Toncoin is the native token used for transactions, governance, staking, and paying for network services.

In 2023, TON launched decentralized file storage and a high-speed off-chain payment system. In March 2024, Telegram announced that 50% of ad revenue would be distributed to channel owners via TON, processed on the TON chain and paid in Toncoin. This boosted Toncoin’s value by 40%, demonstrating real-world application potential. An IPO of Telegram is also highly anticipated; further integration of blockchain functions, especially in its large user base, could significantly increase token demand and value.

6. Internet Computer (ICP) - Decentralized Cloud

Internet Computer TVL: $8.8 million | Current ICP Price: $3.03 | 24h Change: -1.36% | 1-Year Change: -72.88% | Market Cap: $1.65B

Developed by DFINITY Foundation, Internet Computer is a blockchain platform that extends traditional blockchain capabilities, enabling smart contracts and entire software systems to run on-chain. Its unique selling point is providing a decentralized serverless cloud computing environment, redefining internet usage.

ICP tokens are used for transaction processing, smart contract operation, network participation rewards, and governance via the Network Nervous System (NNS).

In 2023, ICP ecosystem made significant progress. Websockets integration enabled real-time interactive applications. Memory expansion supported more complex application development. Smart contracts can securely call Web 2.0 services via HTTPS. Direct integration with Bitcoin network simplified cross-chain transactions. Ecosystem now supports issuing permissionless tokens for DAO governance, with Service Nervous System (SNS) enhancing DAO participation. The DFINITY Foundation funds ecosystem development, with community and NFT projects surging, reflecting organic growth.

7. Sei (SEI) - DeFi Focused

Sei TVL: $27 million | SEI Current Price: $0.11 | 24h Change: +2.00% | 1-Year Change: -75.38% | Market Cap: $727.00M

Sei is a Layer 1 blockchain designed specifically for DeFi applications, offering high-speed, efficient trading environments. Its unique advantage is optimized order book functionality and native matching engine integration, greatly reducing latency and increasing DEX efficiency.

SEI tokens are used for paying fees, governance, and staking. In 2023, Sei consolidated its position through initiatives. The ecosystem fund grew to $120 million, including $50 million from Foresight Ventures, supporting diverse applications like NFTs, gaming, and DeFi. It also raised $30 million in previous funding rounds.

Sei’s growth strategy focuses on Asian markets, leveraging regional tech advantages and high crypto adoption, establishing partnerships with projects like India’s Graviton. Chain-level optimizations improve DEX performance, attracting developers. Ecosystem funds support early teams and innovation.

8. Sui (SUI) - Next-Generation Design

Sui TVL: $557 million | Current SUI Price: $1.41 | 24h Change: +0.23% | 1-Year Change: -68.75% | Market Cap: $5.25B

Sui is an emerging blockchain platform focused on high throughput and scalability, supporting a wide range of decentralized applications. Its innovative consensus mechanism and Move programming language offer enhanced security and flexibility, enabling low-cost, high-volume transaction processing.

SUI tokens are used for paying fees and governance. In 2023, Sui made major progress through strategic token reallocation, distributing 157 million SUI tokens to community and DeFi projects. After mainnet launch and listing on major exchanges, Sui demonstrated scalability, with a record 65.8 million transactions in a single day and a TVL of $188 million, ranking in the top ten.

zkLogin provides users with enhanced privacy when accessing dApps via Web 2 social accounts. TurboStar on Turbos DEX aims to support project growth through funding, promotion, and pre-sales, with safeguards to protect investors and zero-fee trading.

9. Aptos (APT) - Security-Oriented

Aptos TVL: $342 million | Current APT Price: $1.71 | 24h Change: +2.72% | 1-Year Change: -82.19% | Market Cap: $1.28B

Aptos is a Layer 1 blockchain focused on providing high scalability, reliability, and usability for decentralized applications. Using the Move language, it enables secure, flexible smart contracts, with an efficient parallel execution engine significantly increasing transaction speed and throughput.

APT tokens are used for paying fees and governance. In 2023, Aptos rapidly developed with a seasoned team and over $400 million in funding. Technical strengths include Move language and parallel execution, with total value locked surpassing $85 million. Network activity surged, with hundreds of thousands of transactions and a large increase in new accounts.

Strategic expansion deepened the ecosystem: integrating Sushi for DeFi services, collaborating with Coinbase Pay for seamless Petra wallet transactions, and partnering with Microsoft, NEOWIZ, MARBLEX, and Lotte Group to enter gaming and entertainment sectors. New digital asset standards and infrastructure updates like NFT notification indexers and multisig solutions (MSafe) were introduced.

10. Polkadot (DOT) - Cross-Chain Pioneer

Polkadot TVL: $230 million | Current DOT Price: $1.72 | 24h Change: +0.40% | 1-Year Change: -77.00% | Market Cap: $2.84B

Polkadot is a multi-chain blockchain platform enabling trustless transfer of data and assets across different blockchains, sharing unique features and ensuring security. Its core advantages include interoperability, scalable multi-chain architecture, and connecting specialized blockchains.

DOT tokens are used for governance, staking, and parachain bonding. In 2023, Polkadot performed notably. In March, GitHub contributions reached a record 19,090. Parachains launched to provide more cost-effective blockchain models. Next-generation scheduling mechanisms enhanced scalability.

The Polkadot 2.0 upgrade promises significant improvements in scalability, governance, and interoperability. Nominating pools increased staking by 49%, expanding user participation. The launch of Circle’s USDC and Rocco testnets optimized transaction experience. The ecosystem welcomed five new parachains, with technical upgrades and institutional investor initiatives like Zodia Custody.

11. Cosmos (ATOM) - Ecosystem Alliance

Cosmos TVL: $1.25 million | Current ATOM Price: $2.03 | 24h Change: +1.75% | 1-Year Change: -70.76% | Market Cap: $984.31M

Cosmos is a decentralized independent blockchain network addressing scalability and interoperability issues. Its unique selling point is the Inter-Blockchain Communication protocol (IBC), enabling blockchains to interact and share data while maintaining sovereignty.

ATOM tokens are used for staking to maintain security and governance. In 2023, Cosmos ecosystem made significant progress. Cross-chain security was introduced to enhance the safety of smaller chains within the network. Cosmos Hub activity increased sharply, with an average of 500,000 transactions daily and 20 million ATOM traded. The Theta upgrade introduced cross-chain accounts to improve inter-chain interaction. Rho upgrade added liquidity staking and NFT modules.

The Cosmos Hub 2.0 white paper outlined a new vision. The Inter-Chain Foundation allocated $26.4 million for inter-chain technology development in 2024. Investors like Arthur Cheong remain optimistic, especially considering the migration of dYdX and Noble USDC, indicating capital inflow and ecosystem expansion.

12. Ethereum (ETH) - Ecosystem Giant

Ethereum TVL: $490 billion | Current ETH Price: $2.97K | 24h Change: +1.55% | 1-Year Change: -14.99% | Market Cap: $358.73B

Ethereum boasts the largest developer community and over 3,000 active dApps, dominating Layer 1. Since its launch in 2015, it has evolved from a digital currency platform into the largest DeFi, NFT, and dApp ecosystem. Its decentralized open-source nature allows developers to build and deploy applications without central authority, with ETH serving as a powerful native token.

Ethereum’s main advantages are its first-mover edge and strong developer community. This community has driven vibrant growth, providing abundant tools, frameworks, and protocols to foster innovation.

In 2023, Ethereum continued advancing toward Ethereum 2.0. Major developments include Layer 2 scaling solutions (Rollups) further improving cost and throughput. In 2024, the community expects to fully realize Ethereum 2.0 benefits, including the transition to proof of stake, which will further reduce environmental impact and attract eco-conscious investors. Ongoing Layer 2 development and potential integration with other blockchains suggest a more interconnected, scalable, and user-friendly ecosystem.

13. BNB Chain - Trading Ecosystem

BNB Chain TVL: $5.2 billion | Current BNB Price: $841.00 | 24h Change: +0.57% | 1-Year Change: +19.79% | Market Cap: $115.83B

Formerly Binance Smart Chain, BNB Chain was launched by the leading global exchange Binance in September 2020. Running parallel to Binance Chain, it offers a high-performance network for smart contract applications.

BNB Chain features a dual-chain architecture, allowing seamless asset transfers across different networks, supporting DeFi, NFT, and gaming applications. Despite being younger, its ecosystem has grown rapidly, with over 1,300 active dApps as of October 2023. The native token BNB is used as platform fuel and widely applied within and outside the Binance ecosystem.

PoSA consensus enables faster, cheaper transactions compared to Ethereum. It also supports existing Ethereum dApps and tools, attracting developers familiar with Ethereum.

In 2023, the project was officially renamed BNB Chain to reflect its broader vision beyond Binance. It introduced an independent PoS chain for staking and governance to enhance security. Cross-chain bridges expanded interoperability with other ecosystems. In 2024, further scalability improvements are expected through Layer 2 integrations and potential sharding. More strategic partnerships, innovative DeFi protocols, and NFT projects are anticipated to emerge within its ecosystem.

14. Kava (KAVA) - DeFi Aggregator

Kava TVL: $193 million | KAVA Current Price: $0.08 | 24h Change: -1.21% | 1-Year Change: -84.03% | Market Cap: $82.88M

Kava stands out with its unique Layer 1 architecture, combining Cosmos SDK’s scalability and interoperability with EVM compatibility, allowing Ethereum dApps to leverage its features. This “dual-chain” design makes Kava a hub for innovative DeFi applications, offering fast transactions, low fees, and multi-asset usability.

Compared to mature giants like Ethereum, Kava’s ecosystem is smaller but growing rapidly, with over 110 active dApps and a TVL exceeding $250 million. Its native token KAVA is used for governance and staking.

Kava uses Cosmos Tendermint BFT consensus to ensure high security. It offers native USD-pegged stablecoin USDX to facilitate decentralized lending without relying on centralized oracles. The recent Kava 14 upgrade introduced direct minting of USDT on Cosmos.

In 2023, Kava launched major upgrades like Kava 12 and 13, improving Cosmos DAO flexibility and expanding ecosystem capacity. Stablecoins and bridge integrations, along with a focus on security and governance, further solidify its position. A key change is the shift to a fixed supply of KAVA tokens (“Kava Tokenomics 2.0”), aiming to boost adoption and scarcity. A community treasury holding over $300 million in assets was established, reflecting a deep commitment to decentralization and community-driven value growth.

15. Zeta Chain (ZETA) - Full-Chain Connectivity

ZetaChain TVL: $3.25 million | ZETA Current Price: $0.07 | 24h Change: -0.34% | 1-Year Change: -88.79% | Market Cap: $80.72M

Zeta Chain aims to revolutionize interoperability by becoming the first truly “full-chain” Layer 1 blockchain. It can connect and interact with any blockchain, regardless of architecture or smart contract capabilities. This enables seamless cross-chain asset transfers, data exchange, and even cross-chain smart contract execution, fostering a unified Web3 experience.

As a relatively new player, Zeta Chain launched in March 2023, with a young but rapidly growing ecosystem. It now hosts over 20 active dApps and has strategic partnerships with Chainlink, The Sandbox, and others.

Its main advantage is providing full-chain smart contracts, allowing seamless interaction across any blockchain. This capability addresses challenges in multi-chain environments, making it a valuable asset for developers and users seeking interoperability.

In 2023, Zeta Chain reached major milestones, including over 1 million active users across 100 countries. It recorded over 6.3 million cross-chain transactions and supported deployment of over 200 dApps on testnet. Strategic cooperation with Ankr Protocol accelerated Web3 infrastructure access, with $27 million in funding to enhance ecosystem interoperability. Collaborations with BYTE CITY and Ultiverse brought cross-chain features into social entertainment and gaming sectors, expanding practical applications and influence.

The Co-evolution of Layer 1 and Layer 2

The ongoing development of Layer 1 and Layer 2 solutions reflects the dynamic nature of blockchain technology. While Layer 2 addresses scalability and speed issues, Layer 1 remains the cornerstone, ensuring security, decentralization, and infrastructure stability in the crypto world.

The relationship between the two layers is complementary. Layer 2 enhances performance but relies on Layer 1’s security and decentralization. Their development is synchronized, creating a virtuous cycle. Improvements in Layer 1, such as Ethereum sharding, can boost Layer 2 performance. Successful Layer 2 solutions can also inspire and promote Layer 1 upgrades. This dual-layer development may continue, as mainstream applications of blockchain require balancing security, decentralization, scalability, and speed.

Summary

In 2024, Layer 1 blockchains remain at the forefront of the crypto revolution. Their continuous evolution and adaptation are crucial to meeting the diverse and expanding needs of the digital world. From Solana’s astonishing speed to Bitcoin’s unmatched security, each Layer 1 blockchain offers unique features contributing to the rich landscape of the blockchain universe.

While Layer 2 improves efficiency, it depends on Layer 1’s security and decentralization. This synergy ensures a balance: Layer 1 provides a secure, decentralized foundation, while Layer 2 brings scalability and speed. The ongoing evolution of the Layer 1 crypto ecosystem is shaping the future of cryptocurrency.