The Layer 1 technology market is experiencing renewed competition in Q3 2025. Ethereum, Stellar, and BlockDAG represent different approaches to blockchain technologies.
Ethereum’s Strength at High Market Cap
Ethereum has climbed back above $3,000 after months of trading within a narrow range, signaling renewed market confidence. Its transition to proof-of-stake, over $90 billion in total value locked, and one of the largest developer communities reinforce Ethereum’s position as a leading smart contract platform. However, the network still depends heavily on Layer 2 solutions to manage congestion, which could negatively impact user experience during periods of high activity.
Rapid Rise of Stellar, But Long-Term Doubts Persist
Stellar's main strength lies in its simplicity and efficiency. It enables fast payments and low-fee transfers, making it ideal for cross-border transactions. Recently, XLM surged 92% in just a week after breaking a key resistance level. However, Stellar faces notable limitations, including a lack of compatibility with the Ethereum Virtual Machine (EVM), hindering its ability to support a wide range of decentralized applications.
How BlockDAG Blends Speed, Scalability, and Accessibility
BlockDAG is gaining traction with its unique hybrid model. It uses both DAG architecture and proof-of-work, supporting over 15,000 transactions per second. This combination of speed, security, and decentralization is rare for any Layer 1 platform. BlockDAG also stands out with its user-first approach, supporting EVM compatibility so developers can easily bring dApps from Ethereum.
The competition in the Layer 1 technology market is heating up again. Each of the projects discussed—Ethereum, Stellar, and BlockDAG—offers a unique approach to solving various challenges in the blockchain ecosystem.
