ALTCOIN ROUNDUP: THREE LAYER-1 PROTOCOLS SEE INFLOWS AMID CHOPPY, VOLATILE MARKET CONDITIONS

Last updated: June 19, 2025, 22:08 | Written by: Brock Pierce

In the ever-evolving landscape of cryptocurrency, Layer-1 (L1) protocols serve as the fundamental building blocks for the entire decentralized application ecosystem.While Ethereum continues to dominate in terms of the sheer number of protocols built upon it and the total value locked (TVL) within its ecosystem, a select few alternative L1s are making significant strides, carving out their own niches and attracting capital even during periods of market uncertainty.This altcoin roundup focuses on three such L1 protocols that are exhibiting resilience and growth in their decentralized finance (DeFi) communities, showing impressive inflows and increasing TVL.As the sideways market of 2025 persists, serious projects are leveraging the lull to focus on development and strategic expansion.These efforts are paying off, with specific L1s outperforming the broader crypto market and demonstrating robust growth potential. Ethereum competitors make inroads into DeFi as the total value locked and on-chain protocols continue to rise for these layer-1s. Layer-1 (L1) protocols are the foundation of the decentralized application ecosystem, with the Ethereum network dominating the landscape in terms of the number of protocols launched on-chain and total value locked (TVL), followed by BNB Chain and Fantom.What are these protocols doing right?How are they attracting users and developers? Altcoin Roundup: Three layer-1 protocols see inflows amid choppy, volatile market conditions Jordan Finneseth 20 摘要: Ethereum competitors make inroads into DeFi as the total value locked and on-chain protocols continue to rise for these layer 1s.Let’s dive in and explore the factors driving their success, focusing on their unique strengths and DeFi innovations.

Understanding Layer-1 Protocols and Their Importance

Layer-1 protocols are the foundational blockchains upon which decentralized applications (dApps) are built. Skip to main content Bitcoin Insider. MenuThese protocols handle transaction validation, consensus mechanisms, and data storage. As the sideways market of 2025 drags on and serious projects use the time away from the frenzy of bull markets to work on development, several L1 protocols have been outperforming the field and making gains despite weakness in the wider crypto market. Here s a look at three L1 protocols that are seeing growth in their decentralized financeThey are the base layer, responsible for the security and scalability of the entire ecosystem.Ethereum, Bitcoin, BNB Chain, and Fantom are all examples of L1 protocols.The performance and capabilities of these L1s directly impact the functionality and user experience of the dApps built on top of them.

Key Characteristics of Layer-1 Protocols

Consensus Mechanism: The method by which the network agrees on the validity of transactions (e.g., Proof-of-Work, Proof-of-Stake).
Scalability: The ability to handle a large volume of transactions without significant delays or increased costs.
Security: The resilience of the network against attacks and vulnerabilities.
Decentralization: The distribution of control among network participants, reducing the risk of censorship or single points of failure.
Smart Contract Functionality: The ability to execute code automatically based on predefined conditions, enabling complex DeFi applications.

A robust and efficient L1 protocol is crucial for the success of any dApp.Projects seeking long-term viability often prioritize developing on or migrating to L1s that offer superior performance, lower fees, and robust security features.

Waves: A Multi-Purpose Blockchain Showing Resilience

Waves is a multi-purpose blockchain protocol that was originally launched in 2016 and has since undergone several transformations along the path to Waves 2.0.This demonstrates the protocol's commitment to adapting and evolving with the rapidly changing crypto landscape.While it has faced its share of challenges, Waves has shown remarkable resilience and is currently experiencing a resurgence in DeFi activity.

Driving Factors Behind Waves' Growth

The recent increase in TVL on the Waves network can be attributed to several factors:

Neutrino Protocol: The algorithmic price-stable assetization protocol Neutrino, which creates stablecoins tied to real-world assets and cryptocurrencies, has played a significant role. Layer-1 (L1) protocols are the foundation of the decentralized application ecosystem, with the Ethereum network dominating the landscape in terms of the number of protocols launched on-chain and total value locked (TVL), followed by BNB Chain and Fantom.Neutrino allows users to collateralize WAVES to mint stablecoins like USDN, creating utility and demand for the native token.
Vires Finance: This non-custodial liquidity protocol enables lending and borrowing of various crypto assets on the Waves blockchain. Layer-1 (L1) protocols are the muse of the decentralized utility ecosystem, with the Ethereum community dominating the panorama by way of the variety ofVires Finance provides users with opportunities to earn interest on their holdings and access leverage, further contributing to the DeFi ecosystem's growth.
Waves 2.0 Roadmap: The ongoing development and implementation of Waves 2.0, which promises enhanced scalability and functionality, is attracting attention and investment to the platform.

For example, users are increasingly utilizing Neutrino to hedge against volatility in other crypto assets. Business, Economics, and Finance. GameStop Moderna Pfizer Johnson Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. CryptoBy minting USDN with their WAVES holdings, they can maintain exposure to the crypto market while minimizing the risk of price fluctuations.Similarly, Vires Finance offers attractive interest rates on deposited assets, incentivizing users to lock up their tokens and contribute to the overall TVL of the Waves network.

Analyzing the Influx of TVL in Emerging Layer-1s

The rise of alternative Layer-1 protocols signifies a shift in the DeFi landscape.As Ethereum continues to grapple with scalability issues and high gas fees, developers and users are exploring other options that offer faster transaction speeds and lower costs.This migration is leading to increased TVL in these emerging L1s, as projects and users seek a more efficient and cost-effective environment for their DeFi activities.

Factors Contributing to TVL Growth in Ethereum Competitors

Lower Transaction Fees: Many alternative L1s offer significantly lower transaction fees compared to Ethereum, making them more accessible to a wider range of users.
Faster Transaction Speeds: These protocols often boast faster transaction confirmation times, improving the user experience and enabling more complex DeFi applications.
Innovative Consensus Mechanisms: Some L1s are employing innovative consensus mechanisms, such as Delegated Proof-of-Stake (DPoS) or Proof-of-History (PoH), to achieve higher throughput and scalability.
Developer-Friendly Environments: These platforms are actively cultivating developer ecosystems by providing comprehensive documentation, SDKs, and developer tools.
Incentive Programs: Many L1s offer grants, funding, and other incentives to attract developers and projects to build on their platforms.

The increased TVL in these alternative L1s is not just a matter of speculation; it represents a genuine shift in user preferences and developer activity.Projects are actively deploying their dApps on these platforms, and users are migrating their assets to take advantage of the lower fees and faster transaction speeds.

Navigating Volatility: Why Layer-1 Protocol Selection Matters

In a volatile market, choosing the right Layer-1 protocol to build upon or invest in becomes even more critical. Here s a look at three L1 protocols that are seeing growth in their decentralized finance (DeFi) communities and an influx of TVL on their networks. Waves is a multi-purpose blockchain protocol that was originally launched in 2025 and has since undergone several transformations along the path to Waves 2.0.Protocols with robust security, strong communities, and active development teams are better positioned to weather market downturns and emerge stronger. Altcoin Roundup: Three layer-1 protocols see inflows amid choppy, volatile market conditionsInvestors and developers alike should conduct thorough due diligence and carefully evaluate the underlying technology, economic model, and governance structure of each L1 before making any decisions.

Key Considerations for Layer-1 Protocol Selection

Security Audit History: Review the protocol's audit history to identify any vulnerabilities that have been discovered and addressed.
Community Engagement: Assess the level of community engagement and support for the protocol.A strong and active community is a good indicator of long-term viability.
Developer Activity: Track the number of developers building on the protocol and the types of projects being developed. Altcoin Roundup: Three layer-1 protocols see inflows amid Coin SurgesA vibrant developer ecosystem is essential for long-term growth.
Economic Model: Analyze the protocol's economic model to understand how tokens are distributed, how fees are generated, and how the network is incentivized.
Governance Structure: Examine the protocol's governance structure to determine how decisions are made and who has the power to influence the network's direction.

Consider a hypothetical scenario: a DeFi project seeking to launch a new lending platform.Choosing an L1 with high gas fees and slow transaction speeds would significantly hinder the platform's usability and adoption. The network s increased TVL has largely been attributed to gains on the algorithmic price-stable assetization protocol Neutrino, which creates stablecoins tied to real-world assets, cryptocurrencies and the non-custody liquidity protocol Vires Finance.On the other hand, selecting an L1 with low fees and fast transaction speeds would provide a much smoother and more efficient user experience, increasing the platform's chances of success.It's crucial to weigh these factors and choose an L1 that aligns with the project's goals and target audience.

Waves, DeFi and TVL: A Deep Dive

Focusing again on Waves, its success in attracting TVL is closely tied to its DeFi ecosystem. Layer-1 (L1) protocols are the foundation of the decentralized application ecosystem, with the Ethereum network dominating the landscape in terms of the number of protocols launched Altcoin Roundup: Three layer-1 protocols see inflows amid choppy, volatile market conditionsLet's examine specifically how this has occurred.

The Role of Neutrino and Vires in Waves' TVL Growth

As mentioned earlier, Neutrino and Vires Finance are key drivers of TVL on the Waves network. Altcoin Roundup: Three layer-1 protocols see inflows amid choppy, volatile market conditions . Buy, Sell, Trade Bitcoin with Credit Card 100 Cryptocurrencies @ BEST rates from multiple sources, Wallet-to-Wallet, Non-Custodial!Neutrino's stablecoin minting mechanism allows users to collateralize WAVES to create stablecoins like USDN, increasing the demand for WAVES and providing a stable store of value within the ecosystem.Vires Finance, on the other hand, enables lending and borrowing of crypto assets, creating opportunities for users to earn interest and access leverage.

Neutrino and Stablecoin Adoption: The ability to easily mint and redeem stablecoins like USDN has fostered increased adoption of the Waves network, as users seek a stable and reliable medium of exchange within the DeFi ecosystem.
Vires Finance and Liquidity Provision: Vires Finance's lending and borrowing platform has attracted liquidity providers to the Waves network, further boosting the TVL and enhancing the overall functionality of the DeFi ecosystem.

These factors contribute to a positive feedback loop: increased adoption of Neutrino and Vires Finance leads to higher demand for WAVES, which in turn attracts more liquidity and users to the network, further boosting TVL. Ethereum competitors make inroads into DeFi as the total value locked and on-chain protocols continue to rise for these layer-1s.The combination of stablecoin functionality and lending/borrowing capabilities is a powerful combination for driving DeFi growth.

Future Outlook for Layer-1 Protocols

The future of Layer-1 protocols is bright, with ongoing innovation and development pushing the boundaries of what's possible in the decentralized world.As more projects and users migrate to alternative L1s, the competition among these platforms will intensify, driving further improvements in performance, scalability, and security.The increasing focus on interoperability and cross-chain communication will also play a crucial role in shaping the future of the L1 landscape.

Key Trends to Watch in the Layer-1 Space

Scalability Solutions: The development and implementation of layer-2 scaling solutions, such as rollups and sidechains, will be crucial for addressing the scalability challenges of L1 protocols.
Interoperability Protocols: The rise of interoperability protocols, such as bridges and cross-chain communication standards, will enable seamless asset transfers and data sharing between different L1s.
Decentralized Governance: The adoption of decentralized governance mechanisms will empower communities to participate in the decision-making process and shape the future of their respective L1 protocols.
Security Enhancements: Ongoing research and development of security enhancements, such as formal verification and zero-knowledge proofs, will be essential for protecting L1 protocols against attacks and vulnerabilities.
Sustainable Energy Consumption: The shift towards more sustainable consensus mechanisms, such as Proof-of-Stake, will reduce the environmental impact of L1 protocols and make them more attractive to environmentally conscious users.

Ultimately, the success of any L1 protocol will depend on its ability to adapt to the evolving needs of the decentralized ecosystem and provide a secure, scalable, and user-friendly platform for building and deploying dApps.The next few years will be crucial for determining which L1s will emerge as the dominant players in the DeFi space.

Conclusion: Key Takeaways and Actionable Advice

In conclusion, while the crypto market experiences periods of volatility, certain Layer-1 protocols are demonstrating resilience and attracting inflows. ETHUSD Ethereum Altcoin Roundup: Three layer-1 protocols see inflows amid choppy, volatile market conditionsWaves, with its Neutrino protocol and Vires Finance, exemplifies this trend.Understanding the underlying drivers of growth in these protocols, such as lower fees, faster transaction speeds, and innovative consensus mechanisms, is crucial for both investors and developers. Altcoin Roundup: Three layer-1 protocols see inflows amid choppy, volatile market conditions 3 years ago admin Layer-1 (L1) protocols are the foundation of the decentralized application ecosystem, with the Ethereum network dominating the landscape in terms of the number of protocols launched on-chain and total value locked (TVL), followed byAs an investor, conduct thorough due diligence before allocating capital to any L1 project. Altcoin Roundup: Three layer-1 protocols see inflows amid choppy, volatile market conditions W WAVESUST Layer-1 (L1) protocols are the foundation of the decentralized application ecosystem, with the Ethereum network dominating the landscape in terms of the number of protocols launched on-chain and total value locked (TVL), followed by BNB ChainAs a developer, carefully evaluate the performance, scalability, and security of different L1s before choosing a platform to build upon. As the sideways market of 2025 drags on and serious projects use the time away from the frenzy of bull markets to work on development, several L1 protocols have been outperforming the field and making gains despite weakness in the wider crypto market.The future of DeFi lies in the hands of those who are willing to explore and embrace these emerging L1 solutions.Now is the time to research, analyze, and position yourself to benefit from the continued growth of the decentralized ecosystem. Here s a look at three L1 protocols that are seeing growth in their decentralized finance (DeFi) communities and an influx of TVL on their networks. Waves is a multi-purpose blockchainConsider diversifying your portfolio to include promising alternative L1s.Experiment with building dApps on different L1 platforms to gain hands-on experience.Stay informed about the latest developments in the L1 space and adapt your strategies accordingly.By taking these steps, you can navigate the volatility and capitalize on the opportunities that arise in the rapidly evolving world of cryptocurrency.Which L1 protocol are you most excited about, and why?Let us know in the comments below!