Layer 1 tokens lose strength in 2025 due to migration.

• Layer 1 tokens will face structural pressure in 2025.
• Bitcoin expands its dominance as users migrate from networks.
• Fragile tokenomics accelerates the fall of altcoins.

Layer 1 blockchain tokens faced a difficult year in 2025, with significant price drops and a shrinking user base, while Bitcoin maintained relative strength and expanded its market dominance. This assessment is part of a year-end report from OAK Research, which points to relevant changes in investor behavior and network usage.

According to the study, the pressure on layer 1 altcoins exposed structural weaknesses, especially in projects that failed to demonstrate consistent economic value generation. The market began to penalize protocols with limited use, even those that maintained technical activity and continuous development.

Usage metrics reinforce this trend. The total number of monthly active users fell by more than 25% among the main blockchains analyzed. Solana registered the largest decline, losing approximately 94 million users, representing a reduction of over 60%. Conversely, BNB Chain nearly tripled its user base, attracting users who migrated from other networks in search of lower costs and greater operational predictability.

In the tier 2 segment, the scenario was also uneven. Base stood out for its growth in Total Value Locked (TVL), driven by distribution via Coinbase. Optimism, on the other hand, faced a significant capital contraction as resources were redirected to competing solutions. Other tokens, such as zkSync Era, Polygon, and Arbitrum, ended the year with significant losses, despite technical advancements.

The report identified three key factors for the negative performance: excessively leveraged tokenomics, with constant unlock schedules; a lack of efficient value capture mechanisms that connect network usage to token demand; and institutional preference for Bitcoin and Ethereum over lower-capitalization assets.

Even with the devaluation of tokens, developer activity remained strong in some ecosystems. Data cited from Electric Capital shows that the EVM architecture continues to lead in the number of developers, while Bitcoin has seen the largest growth in full-time professionals in the last two years. Solana and the SVM ecosystem have also maintained continuous technical expansion.

In terms of revenue, stablecoin issuers and derivatives platforms dominated the landscape. Tether and Circle concentrated a large portion of the sector's annual income, while generic layer 1 and layer 2 networks, without clear differentiation, lost relevance. The outlook for 2026 suggests consolidation, with greater capital concentration in protocols capable of demonstrating real economic utility and sustainable revenue generation models.