July 2025 marks a significant time of change in the cryptocurrency world. Despite instability, the industry continues to evolve.
L1: Settlements on the Frontier
Each layer-1 blockchain—such as Ethereum, Solana, and Bitcoin—can be likened to frontier towns built on untamed land. They attract developers and investors, creating their own unique advantages.
L2: Infrastructure for Livability
Layer 2s, such as Arbitrum and Optimism, constitute the infrastructure necessary for comfortable living in cryptocurrency settlements. They help to reduce congestion and improve transaction processing speeds.
DeFi: The Mercantile Economy
DeFi protocols serve as partners for value exchange and lending, forming the economic foundation for prosperous cryptocurrency ecosystems.
The analysis indicates that, despite challenges, the crypto industry will continue to evolve with a focus on building robust infrastructure and enhancing user experience.