According to Rob Solomon, daily capital allocation in crypto is concentrating in so-called casino plays, specifically wallets, DeFi, launchpads, and Layer 1s, indicating persistent buyer preference for these segments, source: Rob Solomon on X, Aug 16, 2025. He adds that these are the coins that make money from the casino, highlighting monetization and fee capture within these sectors that continue to attract flows, source: Rob Solomon on X, Aug 16, 2025. For trading, this points to prioritizing screens and liquidity checks across wallet tokens, DeFi protocols, launchpad tokens, and L1 ecosystems when seeking near-term momentum aligned with observed market demand, source: Rob Solomon on X, Aug 16, 2025.

According to @alice_und_bob, the Polkadot SDK is positioned as the best stack to build L1s, L2s, and L3s, enabling teams to launch an L1 in minutes with EVM functionality out of the box; source: https://twitter.com/alice_und_bob/status/1955412892708377039. Polkadot SDK documentation shows EVM compatibility via the Frontier stack and provides starter node templates for bootstrapping new chains, allowing Solidity smart contracts to run on Substrate-based networks; sources: https://docs.substrate.io https://github.com/paritytech/frontier https://github.com/substrate-developer-hub/substrate-node-template.

According to @alice_und_bob, several FinTech leaders spent months researching multiple blockchain tech stacks and reached conclusions that do not accept Ethereum as the sole center or an L2 only thesis, directly challenging the claim we dont need more L1s (source: @alice_und_bob, post dated Aug 12, 2025). For traders, this public pushback is a narrative datapoint relevant to positioning between ETH, L2 ecosystem tokens, and alternative L1 exposure, reflecting ongoing divergence in institutional views on stack selection (source: @alice_und_bob). The post specifies no chains and provides no price, volume, or deployment metrics, so it should be treated as sentiment evidence rather than a direct catalyst (source: @alice_und_bob).

According to @AveryChing, big tech and fintech firms are set to launch new Layer-1 and Layer-2 networks, marking a shift from crypto as the product to products built on crypto, which he identifies as a core market driver for builders and investors, source: @AveryChing on X, Aug 12, 2025. He asserts that Aptos (APT) has advantages in trading performance, cloud integration, finality, cost, and scale that will set the standard and be reflected in valuation, source: @AveryChing on X, Aug 12, 2025.

According to @MilkRoadDaily, Stripe is building a proprietary blockchain called Tempo in partnership with Paradigm, positioned as a high-speed, payments-first Layer 1 (source: @MilkRoadDaily). According to @MilkRoadDaily, Tempo is designed to plug directly into Stripe’s global merchant network, targeting immediate real-world transaction flow at launch (source: @MilkRoadDaily). According to @MilkRoadDaily, the post claims Tempo could see more real-world adoption from day one than most chains ever experience, highlighting potential onchain payments volume and merchant settlement use cases if executed as described (source: @MilkRoadDaily). According to @MilkRoadDaily, no additional specifics on token model, launch date, or technical stack were provided in the post, making official updates pivotal for traders tracking onchain payments and L1 adoption narratives (source: @MilkRoadDaily).

According to the dYdX Foundation, the DYDX token has undergone a fundamental architectural shift, which is critical for traders to understand. Originally an Ethereum-based governance token for the dYdX v3 protocol, the DYDX token migrated to its own sovereign Layer 1 blockchain, the dYdX Chain, following a governance vote in 2023. The source states that this new chain is built with the Cosmos SDK and secured by a decentralized validator set, transforming DYDX from an ERC-20 token into the native asset of a dedicated blockchain. This change directly impacts the token's utility, staking mechanisms, and long-term valuation proposition.

According to @MilkRoadDaily, who highlighted analysis from @albusdumbledapp, the CEO of ConcreteXYZ and GlowFinanceXYZ, Sui (SUI) is a standout investment for active market participants. When presented with a hypothetical $1 million to invest, @albusdumbledapp singled out SUI, emphasizing its potential for investors who seek more than just passive gains from price appreciation. This suggests that the Sui ecosystem offers robust opportunities for generating alpha through active engagement, such as DeFi participation or other interactive protocols, making it a compelling choice for traders looking to actively manage their crypto portfolio.

According to Jihoon Song, ongoing Ethereum development is focused on scaling both Layer 1 (L1) and Layer 2 (L2) solutions while improving user experience, without sacrificing essential features such as verifiability, censorship resistance, security, and privacy (source: Jihoon Song, Twitter, June 3, 2025). For traders, this balanced approach to scalability is a key factor supporting long-term confidence in the Ethereum ecosystem, ensuring that increased transaction throughput will not come at the expense of core network values. This strategic direction may stabilize ETH price trends and encourage greater institutional and retail adoption, impacting overall crypto market sentiment.

According to Nic Carter, the supply of blue-chip stablecoins may soon become a more reliable metric than Total Value Locked (TVL) for evaluating Layer 1 and Layer 2 blockchain networks. This shift in focus could impact how traders assess the stability and growth potential of these networks, particularly in volatile markets. Carter's insights suggest that stablecoin supply could provide a more consistent measure of liquidity and user trust in a network, which are critical factors for traders when making investment decisions.

According to Vitalik Buterin, Ethereum's current privacy roadmap involves minimal changes to the Layer 1 protocol, focusing instead on less impactful but more achievable privacy enhancements. The roadmap can be explored in detail on the Ethereum Magicians forum. This approach may result in fewer disruptions to the existing network, potentially making it easier for developers and traders to adapt. Vitalik encourages stakeholders to review both the privacy roadmap and the associated discussions to better understand their implications. Source: @VitalikButerin

According to @MilkRoadDaily, alternative Layer 1 blockchains experienced significant growth in 2021, with Avalanche (AVAX) leading the charge. This surge surpassed Ethereum's performance, indicating a shift in investor focus and capital towards blockchains offering enhanced scalability and reduced transaction fees.

According to @MilkRoadDaily, Avalanche (AVAX) spearheaded a significant surge in alternative Layer 1 blockchains in 2021, surpassing Ethereum (ETH) in growth. This marked a shift of focus and investment towards blockchains offering enhanced scalability and reduced fees.

According to Milk Road, alternative Layer 1 blockchains experienced significant growth in 2021, with Avalanche (AVAX) leading the surge. This trend indicates a shift in attention and capital towards new blockchains that offer better scalability and lower transaction fees compared to Ethereum (ETH). Traders should note the growing interest in these emerging platforms, which could influence future market dynamics.

According to Dave (@ItsDave_ADA), Solana's attempt to scale at the Layer 1 level without increasing centralization is encountering significant obstacles. The requirement for voting transactions necessary for consensus is consuming a large portion of the available blockspace, which could impact transaction throughput and efficiency. This situation presents a challenge for traders relying on Solana's scalability for quick and cost-effective transactions.

According to IntoTheBlock, Bitcoin's market dominance has been steadily increasing since 2022, representing one of the longest periods of sustained growth on record. However, when measured by active users, Bitcoin's share has declined as more on-chain activity shifts towards Ethereum and other Layer 1 solutions.

According to Vitalik Buterin, there is a plan to implement Fusaka on Layer 1 with PeerDAS, targeting a 48/72 blob limit. This development is crucial for traders as it may enhance scalability and efficiency in blockchain transactions. The goal is to initiate a Fusaka testnet with these parameters immediately after the Pectra system goes live, which could significantly impact transaction throughput and trading activities on the blockchain. (Source: Vitalik Buterin's Twitter)

According to Vitalik Buterin, Fusaka's integration on Layer 1 with PeerDAS and a 48/72 blob target/limit is planned for 2025, with the aim to establish a testnet post-Pectra's launch, suggesting potential scalability improvements and new opportunities for traders.

According to @KookCapitalLLC, FTM has rebranded to Sonic, boasting a transaction speed exceeding 10,000 transactions per second (TPS), which is faster than Solana. As a standalone layer 1 blockchain, Sonic is suggested to be inherently faster than layer 2 solutions. This rebranding and performance claim may impact trading strategies as investors assess the implications for speed and scalability in comparison to other blockchains.

According to Cas Abbé, the $LIBRA scam appears to have marked the decline of the memecoin hype. Traders are increasingly moving away from memecoin pump-and-dump schemes and are reallocating their portfolios towards utility coins. This shift is reflected by the rise in popularity and value of several Layer 1 (L1) and DeFi tokens, which are now showing significant gains compared to memecoins, as reported by Cas Abbé.

According to Milk Road, the market for Layer 1 blockchains (L1s) is expected to become increasingly fragmented, akin to social networks, suggesting that investing solely in one L1 is not advisable. This perspective highlights the importance of diversifying investments across different blockchain applications rather than concentrating too heavily on L1s. The report also references discussions with Avichal, emphasizing the strategic allocation between L1s and blockchain applications. These insights are crucial for traders looking to optimize their cryptocurrency portfolios by balancing investments between foundational blockchain infrastructures and emerging applications. Source: Milk Road.