Highlights of the Top 15 Layer-1 Blockchains - Investment Opportunities 2024

What Is Layer-1 Blockchain and Why Is It Important?

In the rapidly evolving world of cryptocurrency, layer-1 blockchain serves as the foundational infrastructure. These are not scaling solutions like layer-2, but independent networks that process transactions and record data directly.

Decentralization, security, and transparency are the three pillars that make layer-1 blockchain essential. Each network uses its own consensus mechanism—such as Proof of Work, Proof of Stake, or other variants—to validate transactions and protect the integrity of the system.

The main difference between layer-1 and layer-2 is independence. While layer-2 relies on layer-1 to settle final transactions, layer-1 blockchains operate autonomously, with native tokens supporting transaction fees, staking, and network governance.

What Makes a Layer-1 Blockchain Powerful?

To become a notable layer-1 blockchain, high processing capacity, optimized architecture, and an active developer community are required. The best networks today stand out in:

• Transaction Speed: Ability to handle thousands or millions of transactions per second
• Low Transaction Fees: Reducing operational costs for users
• Interoperability: Seamless connection with other blockchains
• Network Effects: Large user base and dApps increasing token value
• Technological Innovation: Advanced consensus mechanisms and security models

Leading Layer-1 Projects

Solana (SOL) - Fastest Candidate

Solana is currently trading at $123.86 with a market cap of $69.69 billion USD. Over the past year, SOL has changed by -37.25%.

What makes Solana unique is its Proof of History (PoH) combined with Proof of Stake (PoS), enabling transaction processing at unprecedented speeds. Its ecosystem continues to expand with thriving NFT transactions, DeFi applications like Marinade Finance and Jito, and innovative projects such as STEPN and Audius.

In 2023, Solana reached significant milestones: launching Solana Improvement Documents (SIMD) to formalize proposal processes, developing Firedancer to increase validation speed, and strategic partnerships with Google Cloud and AWS. The Solana Saga smartphone also created buzz with the BONK airdrop.

Avalanche (AVAX) - Unique Consensus Mechanism

AVAX is currently priced at $12.46 with a market cap of $5.35 billion USD. Over the past year, the change was -69.03%.

Avalanche’s strength lies in its improved Proof of Stake mechanism, allowing transaction confirmation in under two seconds. This creates a powerful combination of security, scalability, and decentralization.

In 2023, Avalanche’s C-Chain set a record with over 3.07 million transactions, with more than 50% being text-based transactions. This led to a spike in transaction fees. On November 19, the network processed up to 2.3 million transactions per day, five times the average of 450,000 transactions/day. Integration with J.P. Morgan’s Onyx blockchain demonstrates broad recognition of the network.

Kaspa (KAS) - Unprecedented Processing Speed

KAS currently has no TVL data, but its market cap is $2.4 billion USD with a 1400% change over the past year.

Kaspa uses the GHOSTDAG mechanism for fast, instant transaction finality. Transitioning from GoLang to Rust has unlocked the full potential of modern hardware, enabling block and transaction processing at unprecedented speeds.

Kaspa’s ecosystem has evolved from GoLang to Rust, increasing transactions per second. The KAS token saw a value increase of over 1,800% in 2023. Future plans include establishing Kaspa as a fast PoW blockchain with high scalability, supporting smart contracts and dApps.

Bitcoin (BTC) - The King of Digital Currencies

Bitcoin is trading at $88.57K with a market cap of $1,768.49 billion USD. Over the past year, it changed by -10.86%.

Bitcoin remains the foundational layer from which everything else originates. Launched in 2009, Bitcoin is renowned for its high security, immutability, and status as “digital gold” due to its limited supply of 21 million BTC and decentralized nature.

In 2023, key developments include Bitcoin Ordinals protocol allowing NFT minting directly on the Bitcoin blockchain, creating tokens like ORDI, SATS, and RATS. Bitcoin sidechains and layer-2 solutions like Stacks emerged to address Bitcoin’s limitations in supporting smart contracts. Taproot Assets protocol uses Bitcoin’s smallest unit (satoshi) to represent tokens, demonstrating ecosystem flexibility.

Internet Computer (ICP) - Recreating the Decentralized Internet

ICP is currently priced at $3.03 with a market cap of $1.65 billion USD. Over the past year, it changed by -72.86%.

Developed by the DFINITY Foundation, Internet Computer aims to revolutionize the internet by enabling a decentralized cloud computing environment. Its strength lies in its consensus mechanism, allowing high transaction throughput and scalability.

In 2023, ICP made significant progress: integrating Websockets for real-time interaction, expanding stable memory, and enabling Canisters to make secure HTTPS calls to Web 2.0. Direct integration with Bitcoin simplifies cross-chain transactions. Its ecosystem now supports permissionless token issuance for DAO governance, backed by the Service Nervous System (SNS).

Sei (SEI) - Specialized for DeFi

SEI is trading at $0.11 with a market cap of $724.41 million USD. Over the past year, it changed by -75.47%.

Sei is designed specifically for DeFi applications, focusing on optimized order books and native matching tools. This significantly reduces latency and improves efficiency for DEXs and financial protocols.

In 2023, the Sei Ecosystem Fund increased to $120 million USD with a $50 million USD investment to support diverse Web3 applications. Its growth strategy targets the Asian market, leveraging high cryptocurrency adoption in the region. Sei has excelled in chain-level optimization to enhance trading performance.

Sui (SUI) - Move Language and Performance

SUI is currently priced at $1.41 with a market cap of $5.26 billion USD. Over the past year, it changed by -68.73%.

Sui is designed for high throughput and scalability, using the Move programming language to develop secure smart contracts. Its efficient parallel execution engine significantly boosts transaction speed and throughput.

After launching mainnet, Sui set a record with 65.8 million transactions in a single day. The revolutionary zkLogin enhances privacy and access to dApps. TurboStar on Turbo exchange accelerates ecosystem project growth through fundraising support and pre-sale access.

Aptos (APT) - Future of Move Technology

APT is trading at $1.69 with a market cap of $1.27 billion USD. Over the past year, it changed by -82.30%.

Aptos focuses on scalability, reliability, and usability. Using the Move language for secure smart contract development, its parallel execution engine greatly improves transaction speed and throughput.

In 2023, Aptos reached an impressive TVL exceeding $85 million USD. Strategic ecosystem expansion includes integrating Sushi, partnering with Coinbase Pay, and expanding into gaming and entertainment with Microsoft, NEOWIZ, MARBLEX. The new Digital Asset Standard supports real-world applications.

Polkadot (DOT) - Connecting Multiple Chains

DOT has no recent TVL data, but its market cap is $8.5 billion USD with a -0.29% change over the past year.

Polkadot is a multi-chain blockchain platform enabling different blockchains to communicate and transfer value trustlessly. Its interoperability and multi-chain architecture are key strengths.

In 2023, 19,090 developer contributions were made on GitHub in March. The introduction of parathreads offers a cost-effective model, while Next-Generation Scheduling improves scalability. Polkadot 2.0 promises upgrades in scalability, governance, and interoperability. Staking activity increased by 49% thanks to new Nomination Pools.

Cosmos (ATOM) - Cross-Chain Communication Standard

ATOM is currently trading at $2.02 with a market cap of $981.39 million USD. Over the past year, it changed by -70.83%.

Cosmos is a decentralized network of independent blockchains. The Inter-Blockchain Communication (IBC) protocol enables different blockchains to interact and share data while maintaining sovereignty.

In 2023, Interchain Security was introduced to enhance security for smaller chains. Online activity surged with an average of 500,000 transactions daily. The Theta upgrade introduced Interchain Accounts, boosting cross-chain interaction. Cosmos Hub 2.0 outlines a new vision, with a $26.4 million USD allocation from the Interchain Fund for development in 2024.

Ethereum (ETH) - The Realm of dApps

ETH is currently priced at $2.96K with a market cap of $357.78 billion USD. Over the past year, it changed by -15.16%.

Ethereum remains the dominant platform with the largest developer community and a vibrant dApp ecosystem with over 3,000 active applications. Launched in 2015 by Vitalik Buterin, Ethereum has surpassed its initial role to become the largest ecosystem for dApps, NFTs, DeFi, and more.

Its main strength lies in its pioneering advantage and extensive developer community. In 2023, Ethereum continued its journey toward Ethereum 2.0, improving layer-2 solutions like rollups, reducing fees, and increasing transaction throughput. Its 2024 vision focuses on completing the transition to Proof-of-Stake, reducing environmental impact, and attracting more investors.

BNB Chain (BNB) - Blockchain-Integrated Exchange

BNB is currently trading at $839.60 with a market cap of $115.64 billion USD. Over the past year, it changed by +19.63%.

BNB Chain (formerly Binance Smart Chain) was developed by the leading exchange Binance, launched in September 2020. Its dual-chain architecture allows seamless asset transfer between chains for diverse applications including DeFi, NFTs, and gaming.

BNB Chain features a young but rapidly growing ecosystem with over 1,300 active dApps. Its PoSA consensus mechanism enables fast transactions at lower costs than Ethereum. In 2023, the project was officially renamed BNB Chain to reflect a broader vision. It introduced a separate PoS chain for staking and governance. Cross-chain bridges are expanding interoperability with other blockchain ecosystems.

Cronos (CRO) - Supported by Crypto.com

CRO is currently priced at $0.09 with a market cap of $3.60 billion USD. Over the past year, it changed by -40.97%.

Launched in November 2021, Cronos is a relatively new layer-1 blockchain built on Cosmos SDK. Supported by the leading exchange Crypto.com, Cronos offers a fast, secure, and interoperable platform for DeFi, NFT, and GameFi.

Cronos uses Proof-of-Stake and has a rapidly developing ecosystem with over 200 active dApps as of February 2024. Built on Cosmos SDK, Cronos integrates seamlessly with Cosmos and Ethereum via IBC. In 2023, initiatives like Cronos ID enhanced digital identity and asset transfer capabilities. In 2024, Cronos aims to continuously improve infrastructure focusing on scalability, interoperability, and user experience.

Kava (KAVA) - Combining Cosmos with EVM

KAVA is trading at $0.08 with a market cap of $82.64 million USD. Over the past year, it changed by -84.06%.

Kava stands out as a unique layer-1 blockchain combining Cosmos SDK’s scalability with an EVM-compatible virtual machine. Its “co-chain” architecture positions Kava as a hub for innovative DeFi applications with fast transactions and low fees.

Kava’s ecosystem is smaller but rapidly growing, with over 110 active dApps. The blockchain leverages Cosmos’s Tendermint BFT consensus to ensure high security. It offers a USD-pegged stablecoin USDX, facilitating decentralized lending activities. Kava 14 upgrade introduces direct USDt issuance on Cosmos. Transitioning to “Kava Tokenomics 2.0” with a fixed supply aims to boost adoption and ensure scarcity. The community-owned Strategic Vault with over $300 million in assets reflects a strong commitment to decentralization.

ZetaChain (ZETA) - First Omnichain Blockchain

ZETA is currently trading at $0.07 with a market cap of $80.36 million USD. Over the past year, it changed by -88.84%.

ZetaChain aims to revolutionize interoperability by becoming the first layer-1 “omnichain” blockchain. It can connect and interact with any blockchain, regardless of architecture or smart contract capabilities.

This enables asset transfer, data exchange, and smart contract execution across different chains, fostering a unified Web3 experience. ZetaChain’s potential lies in connecting the entire blockchain ecosystem, making asset and data movement easier in an increasingly fragmented landscape.

Conclusion: Choosing the Right Layer-1

Each layer-1 blockchain has its own strengths. Solana is the fastest, Ethereum has the largest ecosystem, Bitcoin remains the safest, Polkadot and Cosmos focus on connectivity. Sei, Sui, Aptos emphasize technological innovation. Kava and Cronos offer alternative options with Cosmos SDK.

This diversity benefits the overall cryptocurrency ecosystem. Instead of a winner-takes-all scenario, different layer-1 blockchains succeed in specific contexts. Tracking these projects’ development will help you better understand the future directions of blockchain technology and cryptocurrency in the coming years.