Layer 1 blockchain ecosystems have been gaining a lot of traction recently. The total market cap of L1 coins currently stands at $2.1 trillion, accounting for more than 75% of the larger crypto market cap.
With a bull run around the corner, L1 blockchain projects will likely be fundamental in hosting the next era of decentralized applications (DApps). In fact, the stage is already being set by the likes of Solana which is so far the most popular blockchain ecosystem in 2024.
There are also other niche-specific L1 projects that are revolutionizing the game for builders and users alike. They include Cosmos SDK built chains (Sei and Injective ecosystems) and gaming-oriented L1 chains such as Oasys.
The next section of this article will dive deeper into these L1s to better understand why they merit close attention. Of course, one common denominator is their scalability which, unlike Ethereum, provides more space for DApp deployment and faster transaction throughput.
1. Solana
Solana is currently among the most active blockchain networks. The total value locked (TVL) has more than tripled to $4.5 billion within the past three months. This L1 chain uses a combination of two consensus mechanisms; Proof of Stake (PoS) and Proof of History (PoH), earning it the reputation of being one of the fastest and most efficient DApp ecosystems out there.
Solana on-chain ecosystem is powered by its native token SOL, which enables developers to deploy smart contracts and users to pay for transaction fees. There have also been several developments in Solana’s ecosystem over the past year, most notably the debut of Solana Improvement Documents (SIMDs). These SIMDs introduced a formal channel for developers to suggest protocol improvements.
Even more notable is Solana’s trading ecosystem growth since Q4 2023 and the first quarter of this year. Popular meme coins that have been making waves, including BONK and dogwifhat, are a testament to this vibrancy. Additionally, Solana’s ecosystem is also gaining popularity beyond the crypto community following partnerships with big tech such as AWS and Google Cloud.
2. Oasys
Unlike most L1 chains, which focus on broader innovations in DeFi, Oasys Games, a decentralized blockchain gaming protocol is specifically built to enhance the building environment for blockchain gaming as well as user experience. This EVM-compatible blockchain was launched in 2022 and uses a Proof of Stake (PoS) consensus.
Technically, Oasys features a two-layer design to provide a smooth DApp building environment, alongside other advantages for blockchain gaming such as in-game asset ownership and portability. The first layer is the Hub; its main role is to provide data availability, scalability, and high network stability. Verse, the second layer, acts as the deployment layer, allowing gaming developers to seamlessly create DApps.
Oasys L1 ecosystem is run through a multi-token economy. The platform’s native token is dubbed $OAS. Other ecosystem tokens include Verse, which supports the creation of an ecosystem for each verse, and finally, the Game Tokens and Dapps Tokens, which can be used for games and DApps within the Verse.
What stands out about Oasys dual-layer approach is the level of efficiency this L1 provides to both developers and gamers. This Layer 1 project has also had several achievements, including a $20 million private sale. And with blockchain gaming proving to be potentially big, already accounting for 35% of the total dapp activity in Q1, Oasys is well-positioned to support the growth of this burgeoning industry.
3. Sei Protocol
Sei Protocol is a Layer 1 blockchain primarily focused on DeFi innovations. Its infrastructure uses a hybrid consensus mechanism; Proof of Stake and Verifiable Random Functions to provide high throughput and fair transaction validation.
Sei’s main USP is its highly efficient DEX trading environment powered by a native matching engine and optimized order book functionality. This Layer 1 DApp building infrastructure is designed to reduce the lag in smart contract execution or transaction finality.
Furthemore, Sei’s native adoption of the Cosmos IBC protocol in its infrastructure means that DeFi users can seamlessly transfer assets or share information with other IBC-compatible ecosystems. This can be done with the support of SEI’s native ecosystem token. Some of the key functions this token supports include governance and paying for on-chain transaction fees.
It is also worth mentioning Sei’s L1 ecosystem has attracted several notable crypto VCs such as Foresight Ventures and Bitget, which allocated $50 million to its ecosystem funding. The total value locked (TVL) is also up from $5.3 million at the beginning of 2024 to $48 million as of writing.
4. Injective Protocol
Injective Protocol is another IBC-compatible chain designed to deliver maximum cross-chain efficiency in spot and derivatives trading. The project was launched in 2020 on the Binance Launchpad and has since morphed into one of the most active L1 ecosystems, with a TVL of $72.88 million.
This Layer 1 project became the first chain to launch a rollup whose core function will be to supercharge concurrent Virtual Machine (VM) development. A big milestone for a project that already ranks among the fastest and cheapest smart contract ecosystems. Dubbed inEVM, this rollup is expected to further enhance Injective’s performance, lowering fees to near zero.
Injective’s native token INJ serves as the ecosystem token. It performs several functions such as placing bets, collateral for trading derivatives, and paying out ecosystem rewards. The ecosystem’s Proof of Stake (PoS) consensus also allows its decentralized community to contribute to the network’s security through staking.
Notably, Injective also features some aspects of artificial intelligence, allowing DeFi DApps built within its ecosystem to leverage AI algorithms to optimize decisions for users and enhance market efficiency.
Conclusion
The Layer 1 projects highlighted in this article are just the tip of the iceberg. As the famous crypto saying goes, “build in the bear and reap in the bull,” there is a lot of development that has taken place since the market bottomed in November 2022. That being the case, It is only a matter of time before DeFi, NFT, and blockchain gaming ecosystems start to pick up again. This time, alternative Layer 1 ecosystems will likely lead the way, although Ethereum rollups such as Optimism and Arbitrum have also proven to be potential ecosystems for this market.
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