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New Layer-1 Founders Need Better Answers in 2025

With the proliferation of new L1 solutions launching this year, too few founders are explaining why they aren’t launching L2 solutions instead – which may be a problem.

One of the most pressing questions facing (L1) blockchain founders in 2025 is Why aren’t you just building on Ethereum or Solana?

As the number of new L1 solutions continues to expand throughout the year, the vast majority fail to justify their existence in a world where major chains now offer speed, security, scalability, and composability. Their failure to explain does not imply that there is no justification for what they have wrought, just that too few are making it clear.

Too Many Fields, Not Enough Games

The contemporary blockchain landscape is filled with “empty fields” of abundant block space with little activity. This is an endemic problem across the industry, but founders continue to create more block space than things to do with it.

The industry is seeing the result of hosting an overabundance of blockspace without any new applications for it. While improvements in interoperability solutions have pried open access to otherwise closed-off networks, there are other challenges that may stimy adoption rates of new L1 networks.

Berachain app revenue. July 15 2025. DefiLlama
TVL of Story Protocol. July 15, 2025. Coinpedia

Common Founder Profiles

Common founder profiles have emerged: the “max extractors” seeking quick token launch profits, and the well-meaning builders who started projects in response to Ethereum’s previous bottlenecks but now find themselves locked into costly roadmaps.

Ironically, the latter cohort of builders are saddled with the added responsibility of maintaining a respectable floor price for their native token and offering support for prospective token stakers.

Regardless of motive, most new L1s are solving problems that no longer exist, or that could be addressed more efficiently by launching an app or rollup on an existing chain. Given the surplus of blockspace, launching a robust multi-chain dApp may be an even greater value-add than a new blockchain.

Ethereum’s gas fees are now consistently low, and transaction reliability is high. Solana, despite the occasional hiccup, also runs well for high-frequency use cases. So why are so many teams pouring hundreds of millions into launching new base-layer blockchains?

In regard to the Web3 AI space, upstarts like 0G Labs represents an opportunity to see a third outlier profile manifest another path towards ease of access to the technology. With over $300M raised for the network that promises a novel solution for Web3 AI builders, expectations are high, but this prelude has been read before of networks that have launched with heavy funding but little traction to-date.

Even newer projects focused on AI integration may have been better served as Ethereum L2s or interoperable dApps. Conversely, they may truly be best suited as L1 networks awaiting a second layer of of their own. However, the founders need to provide the justification to that effect.

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Founder, Swept Media

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