Castle Labs reports significant declines in most Layer-1 tokens, highlighting market shifts.

Castle Labs reports that major Layer-1 tokens are experiencing negative performance year-to-date. This reflects changes in the crypto markets, with tokens like ETH and SOL registering significant declines in 2025.

Key players such as Ethereum Foundation and Solana  SOL +0.16% Labs face challenges as market dynamics shift. The focus now turns towards Bitcoin, Ethereum, and other revenue-generating protocols showing more resilience.

The report indicates a noticeable rotation of capital and users from many Layer-1 ecosystems to Bitcoin and BNB Chain. This has created considerable repercussions for lesser-capitalized tokens.

“The market has shifted to rewarding revenue-generating protocols, especially stablecoin issuers and derivatives platforms,” notes an analyst from OAK Research.

Despite declining metrics, platforms like BNB Chain show growth, providing an interesting contrast. The institutional preference for primary cryptocurrencies seems to dictate recent investment behaviors.

Historical data suggests a trend where Layer-1 tokens experience depreciation notwithstanding strong developer communities. Strong tech development continues, though tokenomics and market factors influence price metrics negatively.