Next-gen Chains: Strategic Differentiation

  • Pro
  • Layer-1
  • Layer-2

Key Insights

  • With over 200 Layer-1 and Layer-2 networks live today, demand for blockspace is generated by the network effects of the underlying project.
  • For today’s next-gen chains, a prerequisite for success is opinionated design and a unique go-to-market strategy.
  • Next-gen chains like MegaETH, Hyperliquid, Monad, Berachain, Abstract, and Sonic have found success through strategic differentiations.
  • Strategic differentiation can take various forms, including in areas like ecosystem curation, technological innovation, and user incentivization.

Primer

There are over 200 Layer-1 (L1) and Layer-2 (L2) networks live today. Despite blockspace continuing to saturate, networks continue to receive outsized funding and valuations when compared to applications. Demand for blockspace is generated by the network effects of the underlying project. With ever-increasing blockspace, the next generation of chains must find ways to differentiate themselves and create an edge more than ever before.

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