2025 Crypto Market Shakeup: User Losses Intensify, Bitcoin Dominance Rises, Layer 1 Tokens Under Pressure
In 2025, the cryptocurrency market experienced significant structural changes. Although developer activity remained active, users and capital are accelerating their concentration into Bitcoin, Ethereum, BNB Chain, and protocols with stable yield capabilities, leading to substantial declines in the prices of many Layer 1 and Layer 2 tokens. OAK Research's latest year-end report indicates that this downward trend is not merely a market sentiment issue but a result of long-term accumulated token economic and value capture flaws becoming increasingly apparent.
The report shows that most mainstream Layer 1 blockchain tokens recorded annual losses in 2025, with some emerging projects experiencing particularly sharp declines. On-chain data further confirms the trend of user loss: the total number of monthly active users on major public chains decreased by approximately 25% year-over-year. Among them, Solana saw the most significant decline, with a drop of over 60%; in contrast, BNB Chain's user count nearly tripled, mainly benefiting from attracting existing users from other ecosystems.
The report shows that most mainstream Layer 1 blockchain tokens recorded annual losses in 2025, with some emerging projects experiencing particularly sharp declines. On-chain data further confirms the trend of user loss: the total number of monthly active users on major public chains decreased by approximately 25% year-over-year. Among them, Solana saw the most significant decline, with a drop of over 60%; in contrast, BNB Chain's user count nearly tripled, mainly benefiting from attracting existing users from other ecosystems.
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