Layer 1 Tokens Face Steep Losses in 2025 as SOL and AVAX Drop Over 65%
In 2025 Layer 1 tokens faced a harsh market reality as major chains saw steep declines in price performance. Market leaders such as Solana and Avalanche experienced significant drawdowns, with SOL and AVAX falling more than 65 % from their earlier levels as investor focus shifted from speculative narratives toward fundamental value and sustainable revenue models.
Despite robust developer activity across several ecosystems, price action reflected broader market challenges for infrastructure tokens that lack strong value capture mechanisms and economic utility. The trend highlights structural tokenomics issues and a maturing market that increasingly rewards revenue‑generating protocols while protocols without clear economic models remained under pressure.
As the industry moves into 2026, this trend underlines the growing importance of fundamentals and revenue creation in blockchain networks alongside technological development.
