According to Dave (@ItsDave_ADA), Solana's attempt to scale at the Layer 1 level without increasing centralization is encountering significant obstacles. The requirement for voting transactions necessary for consensus is consuming a large portion of the available blockspace, which could impact transaction throughput and efficiency. This situation presents a challenge for traders relying on Solana's scalability for quick and cost-effective transactions.

According to IntoTheBlock, Bitcoin's market dominance has been steadily increasing since 2022, representing one of the longest periods of sustained growth on record. However, when measured by active users, Bitcoin's share has declined as more on-chain activity shifts towards Ethereum and other Layer 1 solutions.

According to Vitalik Buterin, there is a plan to implement Fusaka on Layer 1 with PeerDAS, targeting a 48/72 blob limit. This development is crucial for traders as it may enhance scalability and efficiency in blockchain transactions. The goal is to initiate a Fusaka testnet with these parameters immediately after the Pectra system goes live, which could significantly impact transaction throughput and trading activities on the blockchain. (Source: Vitalik Buterin's Twitter)

According to Vitalik Buterin, Fusaka's integration on Layer 1 with PeerDAS and a 48/72 blob target/limit is planned for 2025, with the aim to establish a testnet post-Pectra's launch, suggesting potential scalability improvements and new opportunities for traders.

According to @KookCapitalLLC, FTM has rebranded to Sonic, boasting a transaction speed exceeding 10,000 transactions per second (TPS), which is faster than Solana. As a standalone layer 1 blockchain, Sonic is suggested to be inherently faster than layer 2 solutions. This rebranding and performance claim may impact trading strategies as investors assess the implications for speed and scalability in comparison to other blockchains.

According to Cas Abbé, the $LIBRA scam appears to have marked the decline of the memecoin hype. Traders are increasingly moving away from memecoin pump-and-dump schemes and are reallocating their portfolios towards utility coins. This shift is reflected by the rise in popularity and value of several Layer 1 (L1) and DeFi tokens, which are now showing significant gains compared to memecoins, as reported by Cas Abbé.

According to Milk Road, the market for Layer 1 blockchains (L1s) is expected to become increasingly fragmented, akin to social networks, suggesting that investing solely in one L1 is not advisable. This perspective highlights the importance of diversifying investments across different blockchain applications rather than concentrating too heavily on L1s. The report also references discussions with Avichal, emphasizing the strategic allocation between L1s and blockchain applications. These insights are crucial for traders looking to optimize their cryptocurrency portfolios by balancing investments between foundational blockchain infrastructures and emerging applications. Source: Milk Road.

According to Miles Deutscher, the top-performing Layer 1 (L1) blockchains in the past 24 hours are new blockchain ecosystems. This performance surge is attributed to the market's shift to a risk-on sentiment, leading traders to seek new and promising assets for trading opportunities. The focus on these new L1s suggests a market trend where innovation and novelty are significant drivers of trading activity. Source: Miles Deutscher [Twitter].

According to Miles Deutscher, there is an increased focus on Layer 1 (L1) blockchain projects, as indicated by recent market trends and investment flows into these protocols. Investors are showing renewed interest in L1 projects, potentially due to their scalability and diverse application potential, which could influence trading strategies and portfolio allocations in the coming months. (Source: Miles Deutscher on Twitter)

According to IntoTheBlock, even though price trends are downward, the on-chain activity for Layer 1 networks such as Ethereum, Avalanche, and Litecoin remains strong. This resilience is in contrast to smaller tokens and memecoins, which are losing momentum as fewer new users are entering the market.

According to @ThinkingUSD, the recent Libra launch exemplifies a highly efficient and rapid token sale strategy that may serve as a model for other Layer 1 VC-funded chains. The launch did not rely on vesting tokens or inflationary staking rewards but focused on direct extraction to retail investors, showcasing a potentially profitable method for future launches.

According to @RhythmicAnalyst, the necessity of Layer 2 (L2) platforms arises from the failure of distributed Layer 1 (L1) platforms to scale effectively. This critique suggests that L1 has been relegated to serving merely as a file archive for roll-up transactions. For traders, understanding this dynamic is crucial as it impacts the scalability and future utility of blockchain infrastructures, potentially influencing investment decisions in L1 versus L2 technologies.

According to Vitalik Buterin, increasing Layer 1 (L1) gas limits on Ethereum remains crucial even in an ecosystem dominated by Layer 2 (L2) solutions. Buterin emphasizes that higher L1 gas limits can improve transaction throughput and reduce congestion, benefiting traders by ensuring faster and more reliable transaction processing. He also notes that this can enhance the overall scalability of the Ethereum network, which is vital for maintaining a competitive edge in the cryptocurrency market (source: Vitalik Buterin on Twitter).

According to Trader Tardigrade, the cryptocurrency $DIAM is currently attracting significant attention from market participants, particularly whales who are increasing their holdings. Trader Tardigrade highlights that $DIAM is not just a venture capital exit strategy but a genuine Layer 1 blockchain solution that is quantum-resistant and built for longevity. This positions $DIAM as a potentially transformative asset for traders looking for substantial long-term gains.

According to Crypto Rover, traders should consider early investment in $DIAM, a Layer 1 blockchain that claims to address major blockchain issues. Crypto Rover argues that Ethereum ($ETH) is no longer a viable option and suggests that this cycle's narrative favors new Layer 1 projects like $DIAM. This analysis indicates a trading opportunity in the early stages of $DIAM's market presence. Source: [Crypto Rover](https://twitter.com/rovercrc/status/1889344556551802900).

According to Flood (@ThinkingUSD), Hyperliquid presents an $8 billion advantage for developers considering Layer 1 blockchain platforms. This significant financial backing positions Hyperliquid as a formidable choice, potentially offering superior resources and incentives for blockchain projects compared to competing L1 networks.

According to Santiment (@santimentfeed), the crypto community's attention has shifted towards Bitcoin and Layer 1 assets such as Ethereum, Solana, Toncoin, and Cardano. These assets collectively account for 44.2% of discussions among specific coins, indicating a strategic interest shift that traders might consider for portfolio adjustments.

According to Vitalik Buterin, the focus for Ethereum's scalability in 2025 will be on enhancing Layer 1 (L1) and Layer 2 (L2) solutions. The strategies aim to increase transaction throughput while maintaining decentralization and security, which are crucial for supporting a growing number of dApps and users. Buterin emphasizes the integration of rollups as a key component in scaling L2 solutions, which is expected to significantly reduce transaction fees and improve processing speeds. These developments are vital for traders looking to leverage the Ethereum network's full potential without facing high costs or slow transaction times. [source: Vitalik Buterin]

According to Vitalik Buterin, Ethereum Layer 1 (L1) plays a crucial role in sequencing and state transition functions, utilizing SNARKs for zero-knowledge proofs and fraud proofs for optimistic rollups. This setup ensures security through Ethereum's Stage 2 rollup, eliminating multisig risks unless code vulnerabilities are present. Traders should note Ethereum's dominant position as the fee token and primary asset, impacting transaction dynamics and governance structures. Data availability ranges from full Ethereum security to external options, with variations like validium and optimium depending on the proof system used.

According to Vitalik Buterin, there is curiosity regarding the use case of modexp, a mathematical operation, on Ethereum's Layer 1. He reached out to @pcaversaccio to inquire about the exact statistics of modexp usage, indicating a potential interest in understanding its application or impact within the Ethereum network.