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Layer-1 Sector Analysis
By: Tanay Ved, Cooper Duschang & The Coin Metrics Team
Introduction
This issue of State of the Network continues our Sector Analysis series with a deep dive into Layer-1 blockchains. We previously broke down the $260B+ stablecoin sector, covering the different types of reserve backing models, the issuer landscape and the proliferation of stablecoins across different blockchains. Now, we turn our attention to the base layer infrastructure that underpins the majority of on-chain activity.
Layer-1 Sector Report: Overview
Commanding over $3.3T in total market cap, Layer-1s (L1) are the bedrock of the crypto ecosystem. They provide the base infrastructure that powers token issuance, applications and transaction activity on blockchains, creating vibrant on-chain ecosystems. L1s are evolving to meet the needs of diverse use-cases, with different architectures and approaches shaping the tradeoffs for developers, institutions, and end-users alike.
The Report Breaks Down:
The evolution and role of Layer-1s as foundational infrastructure powering the on-chain economy.
Types of Layer-1 blockchains (modular vs. monolithic, general purpose vs. purpose built), and the different architectural approaches to core functions (i.e., execution, settlement, consensus, and data availability).
Adoption and usage across networks like Bitcoin, Ethereum, Solana, and Avalanche, measured through on-chain data and metrics.
Economic mechanisms underpinning Layer-1 native tokens and how value accrual links to network activity, fees, and monetary policy.
Coin Metrics Updates
This week’s updates from the Coin Metrics team:
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