Most promising Layer 1 & Layer 2 Crypto projects Are Worth Your Investment?

Layer 1 blockchains function the foundational networks for cryptocurrency ecosystems, enabling decentralized applications (dApps), smart contracts, and virtual asset transactions. Unlike Layer 2 answers, which are built on top of current blockchains to improve scalability and transaction speed, Layer 1 blockchains function independently with their personal consensus mechanisms, local tokens, and protocols.

As the blockchain space evolves, Layer 1 projects are pivotal in shaping the future of decentralized finance (DeFi), agency adoption, and virtual identification management. Investing in Layer 1 blockchains offers exposure to the growth of the complete surroundings, as these tasks shape the middle infrastructure for a huge range of packages.

In this article, we explore the 25 best Layer 1 blockchain projects and 25 Layer 2 blockchain projects to consider for investment, analyze their potential, and provide expert advice on making informed decisions.

Top 25 Layer 1 Blockchain Projects for Investment

1. Bitcoin (BTC): The Dominant Cryptocurrency

• Investment Potential: As the first cryptocurrency, BTC remains a store of value and hedge against inflation. It often leads market cycles and is widely accepted.
• Use Case: Digital gold, cross-border payments, and long-term value preservation.

2. Ethereum (ETH): DeFi and Web3 Powerhouse

• Investment Potential: Vital for the growth of DeFi, NFTs, and Web3. Ethereum 2.0 promises improved scalability and energy efficiency.
• Use Case: Smart contracts, decentralized apps (DApps), and token creation.

3. Solana (SOL): Speed and Scalability

• Investment Potential: Known for fast transactions and low fees. It’s favored by NFT and DeFi projects.
• Use Case: High-performance DApps, decentralized finance, and NFTs.

4. BNB Chain (BNB): Binance-Backed Ecosystem

• Investment Potential: Strong support from Binance ensures growth. Large DeFi ecosystem and regular burn mechanisms reduce supply.
• Use Case: Utility token for Binance services, staking, and DeFi applications.

5. Cardano (ADA): Research-Driven Blockchain

• Investment Potential: Focus on security and scalability makes it suitable for long-term investment.
• Use Case: DApps, sustainability-focused projects, and smart contracts.

6. Avalanche (AVAX): High Performance for DeFi

• Investment Potential: Growing ecosystem with fast transactions. Competes closely with Ethereum.
• Use Case: Decentralized finance, NFTs, and enterprise blockchain solutions.

7. Polkadot (DOT): Interoperability Pioneer

• Investment Potential: Focus on connecting blockchains gives it a unique advantage in the crypto space.
• Use Case: Cross-chain data sharing, parachains, and interoperability.

8. Cosmos (ATOM): Blockchain Interconnectivity

• Investment Potential: Built for interoperability and scalability, essential as blockchain ecosystems expand.
• Use Case: Inter-Blockchain Communication (IBC), DeFi, and cross-chain applications.

9. Polygon (MATIC): Ethereum’s Layer-2 Solution

• Investment Potential: Key to Ethereum’s scalability, attracting DeFi and NFT projects.
• Use Case: Scaling Ethereum, reducing transaction costs, and supporting DApps.

10. Aptos (APT): Next-Generation Blockchain

• Investment Potential: High scalability and developer-friendly environment make it promising for Web3.
• Use Case: Smart contracts, scalable DApps, and decentralized services.

11. Sui (SUI): Web3-Centric Blockchain

• Investment Potential: Designed for scalability and performance, suitable for modern Web3 applications.
• Use Case: Gaming, DeFi, and NFTs.

12. Near Protocol (NEAR): Developer-Friendly Blockchain

• Investment Potential: Ease of use and scalability make it appealing for new builders and startups.
• Use Case: Smart contracts, NFTs, and decentralized programs.

13. Fantom (FTM): High-Speed Blockchain

• Investment Potential: Compelling for DeFi enthusiasts due to its low latency and high throughput.
• Use Case: DApps, DeFi protocols, and scalable enterprise solutions.

14. Algorand (ALGO): Sustainability-Focused Blockchain

• Investment Potential: Green blockchain with fast, low-cost transactions, targeting institutional use.
• Use Case: Decentralized applications, digital identities, and DeFi.

15. Celo (CGLD): Mobile-First Blockchain

• Investment Potential: Economic inclusion focus appeals to developing regions.
• Use Case: Mobile-first payments, DeFi, and stablecoins.

16. Internet Computer (ICP): Decentralized App Hosting

• Investment Potential: Ambitious vision to decentralize the internet and compete with cloud giants.
• Use Case: Hosting DApps and websites directly on the blockchain.

17. Filecoin (FIL): Decentralized Storage

• Investment Potential: Essential for the future of decentralized data storage.
• Use Case: Secure and scalable file storage solutions.

18. The Graph (GRT): Blockchain Indexing

• Investment Potential: Fundamental for querying and organizing blockchain data.
• Use Case: Indexing and querying data for DApps and DeFi projects.

19. Chainlink (LINK): Reliable Oracle Network

• Investment Potential: Essential for smart contract functionality across blockchains.
• Use Case: Providing secure and decentralized data feeds for smart contracts.

20. Aave (AAVE): Decentralized Lending Protocol

• Investment Potential: Leader in DeFi lending and borrowing, with a sturdy surroundings.
• Use Case: Lending, borrowing, and incomes interest on crypto assets.

21. Sei: Optimized Blockchain for DeFi

• Investment Potential: Promising for high-speed and cost-effective financial transactions.
• Use Case: DeFi applications and high-performance trading platforms.

22. Uniswap (UNI): Decentralized Exchange

• Investment Potential: Pioneer of DEXs, driving liquidity and innovation in the crypto market.
• Use Case: Token swapping, liquidity pools, and decentralized trading.

23. Compound (COMP): DeFi Money Markets

• Investment Potential: Algorithmic lending protocol with high usage in the DeFi space.
• Use Case: Decentralized lending and borrowing.

24. MakerDAO (MKR): Stablecoin Pioneer

• Investment Potential: Creator of Dai, a widely used decentralized stablecoin.
• Use Case: Stablecoin issuance and governance.

25. Curve Finance (CRV): Stablecoin DEX

• Investment Potential: Focuses on stablecoin liquidity with low slippage and fees.
• Use Case: Stablecoin swaps and DeFi yield farming.

Top 25 Layer 2 Blockchain Projects for Investment

Leading Ethereum Layer-2 Solutions

1. Arbitrum (ARB)

• Investment Potential: Dominant L2 with high developer activity, significant DeFi adoption, and low fees.
• Use Case: Scaling Ethereum for DeFi, DApps, and NFT ecosystems.

2. Optimism (OP)

• Investment Potential: Focuses on ease of use, governance through Optimism Collective, and developer tools.
• Use Case: Enhanced Ethereum scalability, low-cost transactions, and user-friendly infrastructure.

3. Polygon (MATIC)

• Investment Potential: A versatile L2 with diverse solutions (zk-rollups, sidechains). Partnerships with major companies like Disney and Reddit.
• Use Case: NFTs, gaming, DeFi, and enterprise solutions.

4. zkSync (ZK)

• Investment Potential: zk-rollup technology offers unmatched scalability, security, and privacy.
• Use Case: Fast, low-cost transactions, DeFi, and private transactions.

5. StarkNet (STRK)

• Investment Potential: A pioneer in zk-rollups with a focus on advanced cryptography and scaling.
• Use Case: DApps requiring high throughput and computational efficiency.

6. ImmutableX (IMX)

• Investment Potential: Specifically designed for gaming and NFTs on Ethereum, with gas-free minting.
• Use Case: NFT marketplaces and blockchain-based games.

7. dYdX (DYDX)

• Investment Potential: A leading decentralized exchange built on StarkNet, offering efficient, high-frequency trading.
• Use Case: Derivatives and margin trading in a decentralized manner.

8. Scroll (SCROLL)

• Investment Potential: Ethereum-equivalent zk-rollup, ensuring seamless developer migration and ecosystem compatibility.
• Use Case: DeFi, NFTs, and DApps.

9. Aztec Network (AZTEC)

• Investment Potential: Combines zk-rollups with privacy features, catering to sensitive transactions.
• Use Case: Privacy-focused DeFi and secure financial transactions.

10. Hermez Network (HMT)

• Investment Potential: Now part of Polygon, leveraging zk-rollups for privacy and scalability.
• Use Case: Private and fast Ethereum transactions.

11. Mantle (MNT)

• Investment Potential: Backed by Binance with a strong focus on scalability and developer experience.
• Use Case: DeFi, NFT platforms, and blockchain gaming.

12. Linea (LINEA)

• Investment Potential: Ethereum-focused L2 with an emphasis on ease of use for developers.
• Use Case: DApps, scalable DeFi protocols, and Ethereum compatibility.

13. Base (BASE)

• Investment Potential: Backed by Coinbase, aiming to onboard millions to DeFi and Web3.
• Use Case: DeFi protocols, retail-friendly DApps, and NFT marketplaces.

14. Celer Network (CELR)

• Investment Potential: Focuses on cross-chain communication and bridging solutions, vital for multi-chain ecosystems.
• Use Case: Cross-chain DeFi, token transfers, and layer-2 scaling.

15. Boba Network (BOBA)

• Investment Potential: Focuses on developer tools and hybrid compute features, bridging Web2 and Web3.
• Use Case: Scalable DApps, DeFi, and AI-based blockchain applications.

Key L2-Integrated DeFi Projects

1. Uniswap (UNI)

• Investment Potential: Dominates the DEX market with increasing adoption on L2s.
• Use Case: Token swaps, liquidity pools, and trading with low fees.

2. Aave (AAVE)

• Investment Potential: Top DeFi lending protocol, expanding its presence in L2 ecosystems.
• Use Case: Borrowing, lending, and incomes interest on crypto property.

3. Curve Finance (CRV)

• Investment Potential: Specializes in stablecoin liquidity with efficient scaling on L2s.
• Use Case: Stablecoin swaps and yield farming.

4. Synthetix (SNX)

• Investment Potential: Allows users to create and exchange artificial property, profiting from L2 scalability.
• Use Case: Synthetic belongings representing real-international currencies, commodities, and shares.

5. Yearn.finance (YFI)

• Investment Potential: Automates yield farming strategies across multiple protocols, scaling on L2s for cost efficiency.
• Use Case: Maximizing DeFi yields through automated strategies.

6. Balancer (BAL)

• Investment Potential: Enables custom token pools and efficient liquidity provisioning.
• Use Case: Token trading, custom liquidity pools, and automated portfolio management.

7. 1inch (1INCH)

• Investment Potential: Aggregates liquidity from multiple DEXs, ensuring users get the best swap prices.
• Use Case: Token swaps across multiple liquidity sources.

8. Frax (FRAX)

• Investment Potential: Fractional algorithmic stablecoin with growing adoption in L2 DeFi.
• Use Case: Stablecoin for lending, borrowing, and liquidity provisioning.

Why Invest in L2 and Associated Projects?

1. Scalability: Layer-2 solutions reduce Ethereum’s congestion, offering faster and cheaper transactions.
2. Adoption Growth: Major DeFi, NFT, and gaming projects integrate with L2s for efficiency and user growth.
3. Interoperability: Protocols like Celer and Aztec enhance multi-chain communication and privacy.
4. Institutional Support: Backing from giants like Binance (Mantle), Coinbase (Base), and Polygon ensures stability and development.
5. Future-Proof: zk-rollup technologies (zkSync, StarkNet, Aztec) are considered the next generation of blockchain scalability and security.

By investing in these L2 solutions and DeFi projects, you tap into the future of blockchain, where scalability, low-cost transactions, and broader adoption are central.

Layer 1 vs Layer 2: Key Differences