Layer-1 blockchain is the fundamental blockchain protocol serving as the backbone for a network. It is a distributed ledger technology (DLT) built to securely record transactions in a public, immutable, and trustless manner. Layer-1 blockchains represent the foundational and most basic form of blockchain and act as the cornerstone for all other blockchain layers. Commonly known as the “core” or “foundation” of the blockchain network, they provide the infrastructure for applications and protocols built atop the network. These blockchains are exclusively responsible for maintaining the distributed ledger, validating transactions, and safeguarding the network against malicious actors.
Layer-1 coins are the native crypto coins of Layer-1 blockchains. Unlike other networks, a Layer-1 blockchain independently validates and supports its network, reimbursing transaction fees with its native crypto. An example of a Layer-1 coin is Ether (ETH), which operates on its dedicated blockchain, Ethereum. While Layer-1 blockchains are designed for functionality, they often encounter scalability limitations. This article will outline the 10 notable Layer-1 Crypto tokens with large market capitalization . Please note that this list is based on internal research and not an investment recommendation. The list is also not mentioned in the order of preference. Investors are required to do their own thorough research and make investment decisions based on their own competence.
Top 10 Notable Layer 1 Coins
- Bitcoin (BTC): As the initial and most significant crypto based on market capitalization, Bitcoin continues to stand out as the premier layer-1 project. With a restricted supply of only 21 million tokens, Bitcoin is well-suited to function as a store of value. The Bitcoin halving event scheduled for April 2024 is anticipated to potentially trigger a prolonged bullish trend.
- Ethereum (ETH): The Ethereum blockchain hosts thousands of crypto tokens, establishing it as the preferred layer-1 blockchain for developers. Ethereum encompasses a wide range of applications, including metaverses, play-to-earn games, and decentralized finance ecosystems. Despite its substantial market capitalization in current trading, many analysts believe its current value represents only a fraction of its future potential.
Read more: Ethereum Price Prediction
- Solana (SOL):This primary blockchain layer presents a compelling substitute for Ethereum, particularly in terms of speed, cost efficiency, and scalability. Solana can manage Smart contracts and decentralized applications without compromising security or energy efficiency. In the last month, Solana has experienced a notable price surge. Nevertheless, it is currently trading at a much lower price below its historical peak.
Read more: Solana Price Prediction
- Ripple (XRP): This layer-1 blockchain layer enables financial institutions to conduct cross-currency transactions. XRP serves as a real-time liquidity bridge, establishing its enduring practicality. Ripple has been adopted by some of the largest global banks, suggesting the potential to replace the SWIFT network eventually. Over the last 12 months, XRP has seen a 60% increase.
- Cardano (ADA): Cardano is a third-generation proof-of-stake blockchain platform that provides scalability, interoperability, and sustainability based on peer-reviewed academic research. It uses a specially designed proof-of-stake (PoS) blockchain protocol for consensus called Ouroboros. Cardano’s native asset is the ADA crypto, which plays a critical role in maintaining and operating the network.
- Polkadot: Providing genuine blockchain interoperability for any layer-1 network, Polkadot can manage various types of digital data. This includes not only cross-blockchain token transfers but also NFTs, smart contracts, dApps, and DAOs.
- Kaspa (KAS): Experiencing rapid growth, Kaspa, a crypto launched in July 2022, has seen an impressive surge of over 7,000%. Over the past 12 months, this layer-1 crypto has witnessed an increase of more than 1,800%. Despite utilizing the proof-of-work model, Kaspa confirms transactions within seconds.
- BNB (BNB): Supporting one of the largest crypto ecosystems globally, BNB serves as Binance’s primary layer-1 blockchain. It is essential for settling transaction fees on the BNB chain. BNB operates as a deflationary layer-1 project, with Binance regularly reducing tokens from the circulating supply.
- Stellar: Established almost a decade ago, Stellar is a versatile layer-1 blockchain that facilitates the tokenization of real-world assets. Additionally, its network supports swift cross-border fiat payments, boasting an average settlement time of 5.8 seconds.
- Cosmos (ATOM): Introduced in 2019, Cosmos has created the Inter-Blockchain Communication protocol, allowing rival blockchains to communicate and exchange data without reliance on centralized providers. ATOM, the layer-1 crypto supporting Cosmos, is presently trading at a level 78% below its previous all-time highs. ATOM boasts a market capitalization exceeding $3.7 billion.
Read more: What is Cosmos (ATOM)
Should I Invest in Layer 1 Crypto Coins?
Layer 1 crypto provides stability, reliability, and the proven performance of well-established networks. Despite experts advising caution due to the inherent volatility and unpredictability of the crypto market, certain investors are willing to embrace the risk in pursuit of potential rewards. It is crucial to conduct thorough research in advance to assess whether investing in layer-1 crypto coins aligns with your financial objectives.
Read more: What are Blockchain Layers
If you found this blog to be useful, do share it with other like-minded crypto enthusiasts. Click on the button below to begin your crypto trading journey using ZebPay.