The Rise of Specialized Layer 1s: A Strategic Shift in Blockchain Investment

The blockchain landscape is undergoing a profound transformation. While general-purpose Layer 1 (L1) blockchains like Ethereum and Solana have long dominated headlines with their broad programmability and ecosystem size, a new wave of specialized L1s is emerging to address industry-specific challenges with precision and efficiency. This shift is not merely technical but strategic, reshaping how investors evaluate blockchain's potential to solve real-world problems.

General-Purpose L1s: The Foundation, But Not the Future

General-purpose L1s remain critical infrastructure for decentralized finance (DeFi), tokenized real-world assets (RWA), and cross-industry applications. Ethereum, for instance, processes over 1.5 million daily transactions and holds $160 billion in TVL as of early 2025, cementing its role as the settlement layer for DeFi and NFTs. However, these chains face inherent trade-offs. Ethereum's throughput of 13 transactions per second and high gas fees limit its scalability for high-volume or low-margin use cases, such as retail payments or supply chain tracking.

Meanwhile, specialized L1s are outpacing general-purpose chains in niche markets by optimizing for specific requirements. For example, Hitachi's blockchain-based procurement system using Hyperledger Fabric reduced infrastructure costs by 43% and fraud by 50% in its supply chain operations. Similarly, Tron's ultra-low transfer fees have made it the preferred network for stablecoin settlements, processing over $600 billion in monthly transactions by mid-2025. These examples underscore how specialization enables tailored solutions that general-purpose chains cannot replicate.

The Investment Divide: Capital Follows Scalability and Use Cases

Venture capital funding in 2023–2025 reflects this divergence. While general-purpose L1s attracted later-stage capital-Ethereum-based DeFi protocols and infrastructure projects raised billions-specialized chains struggled to secure early-stage funding. A report by Galaxy Digital notes that 56% of 2025's crypto VC capital flowed into later-stage deals, with stablecoin-focused companies and DATs (Digital Asset Treasuries) dominating the landscape. Specialized L1s, lacking immediate commercial use cases or strategic partnerships, faced skepticism from investors prioritizing proven scalability.

Yet, this gap is narrowing. Modular blockchains like Celestia and EigenLayer have enabled startups to launch execution layers without building full L1s, reducing capital intensity. In Asia-Pacific, regulatory experimentation has spurred adoption: Hong Kong's tokenized green bonds and Singapore's blockchain-driven trade platforms highlight how specialized chains align with regional priorities. As institutional interest in RWA and AI integration grows, specialized L1s are poised to attract renewed attention.

Performance Metrics: Where Specialization Wins

The real-world impact of specialized L1s is evident in transaction throughput, cost efficiency, and operational gains. In supply chain management, blockchain adoption has reduced traceability times from days to seconds, as seen in Walmart's food safety initiative. For real estate, tokenization platforms like Blockchain Australia's gold-backed NFT system enable fractional ownership and NFT-backed borrowing, democratizing access to high-value assets.

General-purpose chains, while versatile, lag in these metrics. Solana's 50,000 TPS and $0.00025 per transaction contrast sharply with Ethereum's 13 TPS and $1–$5 fees, making Solana a preferred choice for high-frequency trading and DEX operations. This performance gap is critical for industries like gaming, where Sei's blockchain supports 26–29% of all blockchain transactions in 2024 by enabling fast, secure NFT trading.

Strategic Implications for Investors

The rise of specialized L1s signals a shift from "one-size-fits-all" blockchain solutions to targeted, industry-specific architectures. Investors must now weigh the long-term value of general-purpose chains against the agility of niche players. While Ethereum's TVL and institutional backing ensure its dominance in DeFi and RWA, specialized chains are carving out niches in supply chain logistics, stablecoin settlements, and AI-driven trust layers.

For 2026 and beyond, the key lies in identifying chains that align with macro trends. Specialized L1s integrating AI for data verification or tokenizing real estate assets are likely to outperform, particularly in regions with regulatory clarity. Conversely, general-purpose chains must innovate to retain relevance-Ethereum's upgrades to rollups and sharding will be critical.

Conclusion

Blockchain's evolution is no longer about universal adoption but about solving specific problems with precision. Specialized L1s are redefining the value proposition of decentralized infrastructure, offering investors a new lens to evaluate risk and reward. As the market matures, the winners will be those who recognize that the future of blockchain lies not in breadth, but in depth.