Why Are Institutions Still Obsessed With Layer-1s?đ€
#Solana ETFs just got approved and many more are on the way but most crypto natives agree, we donât need more Layer-1s.
So why are all the upcoming ETFs still focused on them?
Itâs not about scalability. Itâs about regulatory survival.
Let's dive inđ§”đ
1/x I was researching the new Solana ETFs and came across a strange pattern:
Every single upcoming ETF, $LTC, $XRP, $DOT, $AVAX, $SUI, is a Layer-1 blockchain.
Why? Because in the eyes of U.S. regulators, Layer-1s are safer.
2/x Most might chase DeFi, AI, and memecoins, but institutions need legal clarity.
They want assets that are clean, regulated, and ETF-friendly.
Right now, that means Layer-1 tokens with their own networks, not ERC-20s.
3/x Thatâs because of the U.S. Clarity Act.
It defines âdigital commoditiesâ as tokens that power an independent blockchain, not tokens built on top of one.
So $UNI, $LINK, and $MKR donât make the cut. But $SOL, $DOT, and $AVAX do.
4/x It sounds backwards but it makes sense.
If youâre a project founder and you want to be:
â
Listed on U.S. exchanges.
â
Approved for an ETF.
â
Recognized as a commodity.
Then launching your own Layer-1 isnât optional, itâs a regulatory strategy.
5/x Itâs also why almost every serious project today masquerades as a Layer-1, even if they donât need to.
They arenât doing it for scalability or innovation.
Theyâre doing it to survive in the post-regulation era.
6/x So if Layer-1s are the future, which narratives matter?
Letâs break it down:
đč RWAs - #Ethereum and #Solana dominate. Institutions like BlackRock still choose Ethereum, but Solana is catching up with tokenized stocks.
đč Crypto Traders - #Solana reigns, Base is rising, $AVAX is doubling down on crypto gaming.
đč Scalability - $APT and $SUI lead with tech stacks similar to Solana. Aptos looks undervalued and is aligning with U.S. regulators.
đč Payments - $XRP and $ADA have ETF momentum. Both are ISO-20022 compliant. Expect retail flows to favor them, along with $XLM, $HBAR, and $XDC.
đč AI - $TAO and $NEAR fit the âdigital commodityâ mold perfectly. Theyâre strong bets if the AI narrative keeps growing.
đč Stablecoins - $TRX quietly leads in USDT usage. Circle stock is the USDC bet. Keep an eye on $MKR, USD1 (World Liberty), and upcoming Tether-backed chains.
7/x Most new Layer-1s arenât solving technical problems. Theyâre solving regulatory ones.
You need your own chain to qualify as a commodity, to get ETF approval, and to stay safe under U.S. law.
So the Layer-1 wave? Itâs not over. Itâs just getting started.
Drop your thoughts on Layer-1s belowđ
8/x Before we wrap up, want to ride this market without stressing entries?
Iâve set up long-term grid bot strategies for $BTC, $ETH, and $SOL using Pionex.
They buy dips, sell rallies so you can set and forget.
đ BTC bot:
đ ETH bot:
đ SOL bot:
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