Layer 1 and Layer 2 tokens struggled in 2025 as users consolidated, MAUs fell, and revenues flowed to stablecoins and derivatives. Weak tokenomics and poor value capture left undifferentiated chains under pressure heading into 2026.

In 2025, many Layer 1 (L1) and Layer 2 (L2) blockchain tokens underperformed as user growth stalled, monthly active users (MAUs) consolidated onto a smaller set of dominant chains, and on‑chain revenues increasingly flowed into stablecoin and derivatives markets rather than native gas or governance tokens. According to crypto.news, this left a broad swath of undifferentiated L1s and L2s facing a “reckoning” heading into 2026, with weak tokenomics and limited value capture putting sustained pressure on their token prices and viability. The backdrop is a maturing market where core infrastructure (L1/L2) has become more commoditized while usage and fees concentrate on a few leading ecosystems such as Ethereum plus its major L2 rollups, along with select high‑throughput L1s. At the same time, a growing share of on‑chain economic activity is conducted in stablecoins and derivative instruments, which can generate fees for exchanges, DeFi protocols, and market venues without necessarily driving proportional demand for the underlying L1/L2 tokens. Crypto.news frames this as an infrastructure phase where users prioritize liquidity, product depth, and execution quality over experimentation with new base chains, contributing to declining MAUs and fee revenues for many smaller or undifferentiated networks. The article further argues that token design is a critical fault line: many L1 and L2 tokens still lack clear value capture mechanisms linking network usage to token demand, beyond speculative appreciation or generic governance rights. In an environment of slower user growth and tighter liquidity, chains without strong differentiation, sustainable fee flows, or compelling tokenomics are portrayed as structurally disadvantaged going into 2026, potentially facing consolidation, rebrands, token redesigns, or declining relevance as capital and users cluster around fewer, more robust ecosystems.

✨ AI-generated background, compiled from web sources — not editorial content.

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• Layer 2
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