The Layer 1 blockchain ecosystem has entered a period of transformation, marked by shifting user behaviors, fluctuating on-chain metrics, and emerging technological preferences. While the broader market saw a general downturn in key performance indicators in January 2025 — including daily transactions, active addresses, and transaction fees — select blockchains like Sui, Sei, and Solana have defied the trend with significant gains in Total Value Locked (TVL) and transaction volume.
This divergence highlights a growing preference among developers and users for high-performance, scalable networks that support parallel processing and efficient smart contract execution. As the crypto landscape evolves, these platforms are positioning themselves as key players in the next phase of decentralized application (dApp) adoption.
Sui Achieves Major Milestone with $600M+ in TVL
One of the most notable developments in early 2025 is the explosive growth of Sui, a Move-based Layer 1 blockchain designed for speed and scalability. Over the past month, Sui has seen a staggering 120% increase in TVL, surpassing established giants like Ethereum and Solana in growth momentum.
Just 10 days after crossing the $500 million TVL threshold, Sui surged past **$600 million — a testament to growing confidence from liquidity providers and DeFi participants. According to an official announcement from the Sui team on X (formerly Twitter), the network also achieved an average daily trading volume of $100 million** over a seven-day period, signaling strong market engagement.
🎉 Today, Sui has over $600,000,000 in Total Value Locked, less than 10 days after achieving the $500M milestone.
Sui also hit $100,000,000 in average daily volume over a 7-day period!
💪 Shout out to the strong Sui community for making this happen!
This rapid ascent reflects not only technical superiority but also a vibrant ecosystem development strategy focused on incentivizing early adopters, launching innovative DeFi protocols, and fostering community-driven growth.
👉 Discover how next-gen blockchains are redefining DeFi performance and scalability.
Sei Joins the Momentum with 90% TVL Growth
While Sui grabs headlines, Sei — another high-speed Layer 1 built for trading applications — is quietly building momentum. In the same reporting period, Sei recorded a 90% increase in TVL, now sitting at approximately $18.02 million. Though starting from a smaller base compared to Ethereum or Solana, Sei’s growth trajectory is among the steepest in the L1 space.
Analysts attribute this surge to Sei’s unique architecture optimized for order matching and high-frequency transactions. Its twin-turbo consensus mechanism and parallelized smart contract execution make it particularly attractive for decentralized exchanges (DEXs) and trading-centric dApps.
The Block Pro, a leading crypto analytics platform, noted that both Sui and Sei are benefiting from a broader market shift: "a preference shift towards integrated systems with parallel execution." This indicates that developers and capital are increasingly favoring blockchains that can handle complex operations at scale without congestion or high gas costs.
Broader L1 Trends: Decline in Activity Amid Stablecoin Growth
Despite these bright spots, the overall Layer 1 landscape experienced a cooldown in January 2025. Metrics such as daily transactions, active addresses, and network fees declined across major chains including Ethereum, Avalanche, and Tron. A primary factor cited by analysts is the plummet in inscription-related activity, which had driven significant traffic in late 2024.
For instance:
- Avalanche saw a sharp drop in daily transactions.
- Ethereum, while maintaining its dominance with a TVL of $42.995 billion, reported less than 30% growth in TVL — modest compared to newer entrants.
- Solana, despite strong transaction volume growth, saw its TVL rise by less than 30%, reaching $1.981 billion.
However, one counterbalancing trend offers optimism: a $4 billion increase in stablecoin supply across Layer 1 networks. This surge suggests sustained on-chain economic activity and growing user confidence in the long-term utility of blockchain platforms.
Solana Shines in Transaction Throughput
While Sui and Sei lead in TVL growth, Solana stands out for its transaction performance. The network experienced a significant spike in daily transaction counts, outpacing Ethereum, Avalanche, and Tron. This resurgence comes amid renewed interest in meme coins, NFT launches, and low-cost micropayment use cases that thrive on Solana’s high-throughput architecture.
Solana’s ability to process thousands of transactions per second at minimal cost continues to attract retail users and developers alike. Its ecosystem has rebounded strongly after earlier network stability concerns, reinforcing its position as a go-to platform for scalable dApp deployment.
👉 Explore how high-performance blockchains are enabling the next wave of decentralized innovation.
Core Keywords Driving Market Shifts
The current shifts in the blockchain space revolve around several key themes:
- Layer 1 blockchain
- Total Value Locked (TVL)
- Parallel execution
- DeFi growth
- Scalability
- Stablecoin supply
- Daily transactions
- High-performance networks
These keywords reflect both technical advancements and user-driven demand for faster, cheaper, and more reliable blockchain infrastructure.
Frequently Asked Questions (FAQ)
Q: What caused the decline in daily transactions across most L1 blockchains?
A: The drop is largely attributed to reduced inscription activity that had driven speculative traffic in late 2024. As that hype faded, general network usage normalized.
Q: Why are Sui and Sei seeing such high TVL growth?
A: Both blockchains offer advanced architectures with parallel transaction processing, enabling faster execution and lower fees — key advantages attracting DeFi projects and liquidity providers.
Q: Is Solana’s transaction surge sustainable?
A: Early indicators suggest yes. The surge is supported by real use cases like NFT mints, token launches, and decentralized trading — not just speculative activity.
Q: How does stablecoin supply relate to blockchain health?
A: Rising stablecoin supply often indicates increased on-chain economic activity, such as lending, trading, or payments — a positive signal of ecosystem vitality.
Q: What does “parallel execution” mean for blockchain performance?
A: It allows multiple transactions or smart contracts to be processed simultaneously rather than sequentially, drastically improving throughput and reducing latency.
Q: Can newer blockchains like Sui overtake Ethereum in TVL?
A: While unlikely in the short term due to Ethereum’s vast ecosystem, rapid innovators like Sui could capture niche markets and challenge dominance in specific sectors like gaming or social dApps.
The blockchain landscape remains highly dynamic. While Ethereum maintains its lead in total locked value, emerging players like Sui, Sei, and Solana are proving that innovation in architecture and user experience can rapidly shift market dynamics.
As adoption grows and user expectations evolve, networks that deliver speed, reliability, and developer-friendly environments will continue to attract capital and attention. The current wave of growth may just be the beginning of a broader realignment in the Layer 1 hierarchy.
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