## Layer 1 Tokens Face Divergent Market Cycles: Which Projects Are Holding Up Better?

The cryptocurrency market's layer 1 segment has displayed stark performance disparities over the past year, with data revealing a tale of winners and losers across the ecosystem. According to recent market analysis, the performance gap between leading L1 projects highlights the challenges investors face when navigating this volatile sector.

### The Underperformers: Double-Digit Losses Dominate

Most Layer 1 tokens have struggled significantly in 2025. TON (The Open Network) has suffered the steepest decline, down approximately 70%, while SUI dropped roughly 69% and AVAX fell around 67.6%. Solana (SOL), despite its robust ecosystem development, retreated nearly 49%, and Ethereum (ETH) saw a more modest decline of approximately 2.92%. These figures underscore the broader challenge facing L1 projects in capturing market momentum.

For traders looking to reposition their holdings—whether seeking to **swap ETH to SOL** or exploring other cross-chain strategies—understanding these performance metrics becomes crucial for portfolio management decisions.

### The Bright Spots: Positive Territory

Not all Layer 1 tokens followed the downward trend. TRX (TRON) managed to deliver positive returns of around 29.3%, demonstrating the strength of its community-driven ecosystem. BNB similarly performed well, and HYPE (Hyperliquid) notched gains of approximately 7.5%, suggesting that differentiated narratives and use cases continue to attract capital.

### What This Means for L1 Investors

The divergence in L1 token performance reflects the market's selective approach to blockchain infrastructure projects. While established networks face headwinds, those with distinct value propositions and active development maintain investor interest. As the market continues to evolve, rebalancing strategies and tactical swaps between underperforming and outperforming Layer 1 assets may become more prevalent among sophisticated traders.