Layer 1s Coming and Don’t Stop Coming
Build-a-blockchain is the game
Over the course of 2025 so far, I’ve been really focused on the utility of layer 1 blockchains. And there’s a really good reason for this. We now, in the world of cryptofication, are entering a time when more and more layer 1 blockchains will emerge. Just look at the top ten cryptocurrencies on CoinGecko.
Of the top ten cryptocurrencies by market cap in 2025, 70% are layer 1 blockchains. Some of them don’t scale for technical reasons, namely Bitcoin and Ethereum, necessitating the use of other chains, called layer 2 solutions, to built more purpose-built utility. You know, things that people want to actually use blockchains for, like web3 apps.
I’ve long been skeptical of layer 2 blockchains, and some have had success, such as Base. Yet the more I talk to web3 entrenprenuers in the space lately, the more I realize an explosion of layer 1 blockchains are coming.
For some reading this, this may sound counterintutive. The argument would be there are already tons of layer 1 blockchains that have emerged in the wake of scaling problems. But many of these layer 1s aren’t getting any traction, despite constant marketing efforts convincing developers to build on them.
And this is where the developer conumdrum comes in. Blockchains are now getting easier to deploy, so why build on an existing ecosystem? Why not fork or use tooling to build one exactly purpose-built for the specific needs of a web3 app?
I think this is really where we are at in the industry today, and it makes sense. There’s an argument to be had about network security. But with staking, networks can pool highly liquid crypto capital (and thus consensus) in a way to keep a network honest. In this way, new layer 1s can be spun up a lot faster than ever before.
One of the best examples of this today is the DEX Hyperliquid. I’ve been talking a lot about Hyperliquid with people recently, and that’s because there are approaching the layer 1 blockchain thing in the very correct way it should be done. They’ve built a centralized exchange experience with an orderbook on chain. They are still having some growing pains in how they do their business but it’s working. The chain has Solana-like speed, which is smart to copy, on basically an exchangechain that now has had $2 trillion in volume.
That being said, another dynamic in play here is surely regulation. In the past, many entrepreneurs would have shied away from launching their own chains with cryptocurrencies because of total regulatory uncertainty.
But since the current U.S. administration has pretty much dropped S.E.C. investigations on blockchains - XRP as one example - it seems really favorable to launch new chains.
Lastly, composability across chains is really starting to make headway. I’ve never been a huge fan of bridges, and in previous years we’ve seen them hacked - Axie Infinity comes to mind here.
However, new systems like THORchain, which is a DEX that is adding multiple exchangeable assets across layer 1s, are emerging at lightnining speed. And of course there are centalized exchanges as well, which allow people to move across chains, with more liquidity than ever before.
We’re going to see a mind-blowing amount of chains emerge. Stablecoins, retail, gaming - it’s simply too easy for web3 developers to build and deploy their own layer 1s.
These chains will be purpose-built for what exactly what’s needed rather than some general-purpose “we build it, developrs come” strategy. Many of those chains, which are too numerous to list here, are struggling with traction becase they still have no blockbuster apps for a community to form around.
So the layer 1s are coming, and they aren’t going to stop coming.