As the blockchain ecosystem evolves, Layer 1 networks remain the backbone of decentralized innovation. These foundational blockchains power everything from smart contracts and dApps to cross-border payments and DeFi ecosystems. In 2024, a new wave of scalability, speed, and interoperability advancements is reshaping the landscape.
This guide explores the 12 best Layer 1 projects this year—highlighting their unique features, real-world advantages, and long-term investment potential. Whether you're a seasoned investor or exploring blockchain fundamentals, this analysis delivers actionable insights grounded in performance, technology, and market trends.
What Are Layer 1 Blockchains?
A Layer 1 blockchain refers to a base-level network that operates independently with its own consensus mechanism, security model, and native token. Examples include Bitcoin, Ethereum, and Solana. These networks process and validate transactions directly on-chain, forming the foundation for higher-level applications.
In contrast, Layer 2 solutions (like Polygon or Lightning Network) are built atop Layer 1 chains to enhance scalability and reduce fees. While useful, they depend entirely on the underlying Layer 1 for security.
👉 Discover how top-tier Layer 1 blockchains are driving the next crypto bull run.
Why Layer 1 Projects Matter in 2024
Layer 1 networks are critical because they determine the speed, cost, and reliability of all decentralized applications. As global adoption grows, scalability and energy efficiency have become key differentiators.
With major developments like Ethereum’s ongoing upgrades, Bitcoin ETF approvals, and emerging high-speed chains like Sei and Kaspa gaining traction, now is a pivotal time to evaluate which Layer 1 platforms offer sustainable value.
Core keywords shaping this space include:
- Layer 1 blockchain
- best crypto projects 2024
- high-performance blockchain
- decentralized network
- crypto investment potential
- blockchain interoperability
- scalable blockchain solution
- smart contract platform
These terms reflect both technical innovation and growing investor interest in foundational crypto infrastructure.
Bitcoin (BTC): The Ultimate Store of Value
Launched in 2009, Bitcoin remains the most dominant Layer 1 blockchain by market cap—surpassing $1.4 trillion at its peak. With a fixed supply of 21 million coins, BTC is widely regarded as digital gold and a long-term store of value.
Two major catalysts loom in 2024:
- The Bitcoin halving, expected in April, will cut block rewards from 6.25 to 3.125 BTC—historically preceding bull markets.
- The potential approval of a spot Bitcoin ETF by the U.S. SEC could unlock massive institutional inflows.
Despite price volatility—falling below $16,000 in 2023 before rebounding past $61,000—BTC continues to attract conservative investors seeking stability in the crypto space.
While it doesn’t support complex smart contracts like newer chains, its unmatched security, decentralization, and global recognition make it the cornerstone of any serious crypto portfolio.
Ethereum (ETH): The King of Smart Contracts
Ethereum dominates as the most widely used smart contract platform, hosting thousands of dApps across DeFi, NFTs, gaming, and metaverse projects. Protocols like Uniswap, Aave, and Compound all run on ETH, creating consistent demand for its native token.
With a market cap exceeding $350 billion and prices above $2,900 (as of early 2024), Ethereum still trades at a 58% discount from its all-time high near $5,000. This presents a compelling entry point ahead of possible Ethereum ETF approvals—BlackRock has already filed an application.
Though challenged by rising competitors, Ethereum maintains a first-mover advantage and robust developer community. Its transition to proof-of-stake has drastically reduced energy consumption while improving security.
👉 See how Ethereum's upgrade cycle could trigger the next market surge.
Solana (SOL): Speed Meets Efficiency
Solana stands out as one of the fastest-growing Layer 1 blockchains, offering high throughput and ultra-low fees. It can handle up to 65,000 transactions per second (TPS) in testing environments—far surpassing Ethereum’s ~30 TPS.
Average transaction costs are just $0.00025, making it ideal for microtransactions and scalable dApp development. Though past network outages raised concerns about decentralization, recent improvements have stabilized performance.
SOL surged over 360% in the past 12 months, yet still trades significantly below its historical peak. At around $116, it offers strong upside potential for investors betting on mass adoption of fast, low-cost blockchains.
BNB (BNB): Powering the Binance Ecosystem
As the third-largest cryptocurrency by market cap, BNB fuels one of the world’s largest crypto ecosystems. Built as a Layer 1 blockchain, BNB Chain supports smart contracts and thousands of BEP-20 tokens.
Key benefits include:
- 25% fee discount on Binance trades when using BNB
- Regular token burns that reduce supply (making it deflationary)
- Low-cost transactions ideal for DeFi and gaming projects
Despite dropping 20% over the past year, BNB remains a strategic investment due to Binance’s dominant trading volume—over $18 billion daily at times.
Even after falling ~46% from its all-time high of ~$690, BNB offers exposure to continued ecosystem expansion.
Ripple (XRP): Bridging Global Finance
Ripple targets financial institutions with its cross-border payment network, enabling real-time settlements across currencies in under five seconds. Transactions cost less than a cent and support up to 1,500 TPS.
Unlike many speculative cryptos, XRP has real-world utility through partnerships with banks and payment providers aiming to replace legacy systems like SWIFT.
Though involved in a long-running legal battle with the SEC (largely resolved by mid-2023), XRP remains a top choice for those interested in blockchain-based remittance solutions.
Currently trading at around $0.54—down 84% from its ATH—XRP offers significant value for patient investors.
Cosmos (ATOM): Enabling Blockchain Interoperability
Cosmos tackles one of blockchain’s biggest challenges: interoperability. Through its Inter-Blockchain Communication (IBC) protocol, Cosmos allows independent chains like Kava and Cronos to securely share data without centralized intermediaries.
ATOM powers governance and staking within the ecosystem. With a market cap over $3.8 billion and prices down 78% from highs, it’s undervalued relative to its technical promise.
As multi-chain ecosystems grow, Cosmos is well-positioned to become the connective tissue between specialized blockchains.
Avalanche (AVAX): Scalability Without Compromise
Avalanche claims “infinite scalability” with sub-second finality and high throughput. It supports ERC-20 token bridging—charging only 0.025% per transfer—and hosts major assets like USDT and Chainlink.
With over 280 projects deployed, Avalanche combines Ethereum compatibility with superior performance. Its market cap sits around $13 billion—offering room for growth compared to larger peers.
Though up only 63% over the past year—below average—it remains attractively priced at 85% below its ATH.
Cronos (CRO): Crypto.com’s High-Speed Chain
Backed by Crypto.com—one of the leading exchanges—Cronos delivers low fees and high scalability for dApps and DeFi platforms. CRO is used for gas payments and provides platform incentives.
Despite a 90% discount from its peak price, CRO has seen a 42% gain over the past year. With Binance facing regulatory headwinds (including a $4 billion fine), Crypto.com may gain market share—boosting Cronos adoption.
Stellar (XLM): Financial Inclusion Through Fast Payments
Stellar focuses on affordable cross-border transfers for individuals and businesses alike. Using a unique consensus model (Proof-of-Agreement), it confirms transactions in 5–6 seconds with minimal energy use.
Partnerships with IBM and MoneyGram underscore its real-world impact. XLM has appreciated 4,000% since launch but trades 86% below its ATH, with a $3.2 billion market cap.
Ideal for investors focused on financial inclusion and efficient remittances.
Polkadot (DOT): The Web3 Interoperability Leader
Polkadot enables cross-chain transfers while maintaining decentralization via its nominated proof-of-stake model. DOT serves three roles: governance, staking, and bonding parachains.
Energy-efficient—using power equivalent to just 6.6 U.S. households—Polkadot supports a growing ecosystem of connected blockchains.
Market cap: ~$9.4 billion. Price: down 90% from ATH, presenting long-term opportunity.
Kaspa (KAS): Fastest Proof-of-Work Blockchain
Kaspa combines Bitcoin-style security with blazing speed—confirming blocks every second via GHOSTDAG protocol. Despite being PoW-based, it achieves instant finality without sacrificing decentralization.
Up over 1800% in 12 months and 7600% since 2022, KAS is one of 2024’s breakout stars. With a $3 billion market cap and ongoing development momentum, it’s poised for further growth.
Sei (SEI): Built for Speed From Day One
Launched in August 2023, Sei exploded onto the scene with over 3400% gains since inception. It processes up to 20,000 TPS with finality in just 380 milliseconds.
Already tested with over 100 million transactions, Sei is optimized for trading applications and DeFi platforms requiring speed and reliability.
With a modest market cap (~$210 million), it offers early-mover potential for forward-looking investors.
👉 Find out which new-gen Layer 1 could outperform during the next bull cycle.
Frequently Asked Questions (FAQ)
Q: What makes a Layer 1 blockchain "better" than others?
A: Key factors include transaction speed (TPS), finality time, security model, decentralization level, energy efficiency, developer activity, and real-world adoption.
Q: Is Bitcoin considered a Layer 1 blockchain?
A: Yes—Bitcoin is the original Layer 1 network, processing transactions natively via proof-of-work consensus without relying on another chain.
Q: How do Layer 1 projects generate value for investors?
A: Through utility (e.g., gas fees), staking rewards, deflationary mechanisms (like token burns), ecosystem growth, and increasing demand from developers and users.
Q: Can Layer 1 blockchains work together?
A: Yes—projects like Cosmos and Polkadot are designed specifically to enable interoperability between different Layer 1 networks using standardized communication protocols.
Q: Are older Layer 1s like Ethereum still competitive?
A: Absolutely. Despite competition from faster chains, Ethereum retains dominance in developer mindshare, total value locked (TVL), and institutional interest—especially with upcoming upgrades.
Q: Should I invest in newer Layer 1 projects like Sei or Kaspa?
A: They offer high-risk, high-reward potential due to lower market caps and rapid innovation. However, thorough research is essential given their shorter track records compared to established chains.
Final Thoughts
The evolution of Layer 1 blockchains defines the trajectory of the entire crypto industry. From Bitcoin’s resilience to Ethereum’s ecosystem strength—and breakthroughs in speed from Solana, Sei, and Kaspa—the diversity of options empowers investors to align with specific visions of the decentralized future.
While volatility remains inherent to digital assets, focusing on fundamentals—technology maturity, use cases, team strength, and network effects—can guide smarter decisions.
Always conduct your own research before investing—but understanding these top Layer 1 projects puts you ahead of the curve in navigating the dynamic world of blockchain innovation.