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Layer 1 Tokens Experience Major Declines in 2025

Layer 1 Tokens Experience Major Declines in 2025

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by Kofi Adjeman

3 months ago


A recent report from OAK Research reveals troubling trends for major Layer 1 tokens in 2025, while Bitcoin has shown resilience amidst the turmoil. According to the results published in the material, the findings suggest that underlying economic structures of these tokens are failing to attract and retain users, leading to significant declines in their market performance.

Weak Tokenomics Impacting Layer 1 Tokens

The report indicates that weak tokenomics and ineffective value capture mechanisms have resulted in increased selling pressure on Layer 1 tokens. As a consequence, Monthly Active Users across major blockchain networks have plummeted by 25%. Notably, Solana has been hit hardest, experiencing a staggering 60% drop in its user base.

Shift in User Engagement and Market Focus

This shift in user engagement suggests a broader market transition from speculative trading to a focus on fundamental value creation. Investors are increasingly prioritizing projects with sustainable economic models, which may explain the relative stability of Bitcoin as it continues to hold its ground in a challenging environment.

The recent challenges faced by Layer 1 tokens highlight the need for innovation in the blockchain space. In this context, the future of AI tokens is also under scrutiny as they navigate significant market hurdles. For more insights, read more.

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