As the cryptocurrency market regains momentum in Q3 2025, the focus on Layer 1 platforms is heightened with Ethereum, Stellar, and newcomer BlockDAG drawing investor interest.
Ethereum: Battle-Tested, Yet Burdened by Scaling Issues
Ethereum remains the leading smart contract platform, recently breaking past the $3000 mark. This achievement was enabled by a successful shift to proof-of-stake and significant developer activity. However, despite its successes, Ethereum faces scalability challenges, reliance on layer 2 solutions, and limited performance during network congestion.
Stellar: Fast Payment Solution with Big Potential
Stellar has focused on simplicity and speed in payment processing, allowing it to capture a niche in cross-border transactions and institutional settlements. Recently, XLM surged 92% in a week, indicating strong buyer interest. However, Stellar's long-term versatility is questioned due to limited developer engagement and lack of Ethereum Virtual Machine (EVM) compatibility.
BlockDAG: The Flexible Architecture Approaching Launch
BlockDAG stands out as an alternative solution, combining the security of Proof-of-Work with the scalability of Directed Acyclic Graph (DAG) architecture. The platform can process over 15,000 transactions per second, making it one of the most scalable today. With over $338.5 million raised in presale and many users onboarded, BlockDAG is setting objectives for growth through partnerships with professional sports organizations.
While Ethereum and Stellar continue to evolve within their lanes, BlockDAG emerges with innovative architecture and a focused growth strategy. Upcoming months will determine the positions these networks take in the next cycle of decentralized innovation.
