Ethereum, Stellar, and BlockDAG: Which Layer 1 Has the Strongest Upside in 2025?

ETH & XLM Super Bullish in July While BlockDAG’s Bullish Streak Continues – Raises Over $338.5M

As the cryptocurrency market regains momentum in Q3 2025, renewed interest in Layer 1 platforms is shaping strategic investor decisions. Ethereum’s recent climb past $3,000 has underscored its enduring dominance. Stellar’s rapid ascent, recording a 92% gain in one week, has reignited attention on its payment-focused ecosystem. Meanwhile, a new entrant, BlockDAG (BDAG), is attracting increasing capital and user adoption, with its presale already surpassing $338.5 million and on track to reach a $600 million target.

Each of these networks represents a distinct vision for blockchain infrastructure. Ethereum continues to serve as the foundational smart contract platform. Stellar targets cross-border financial inclusion and institutional payment rails. BlockDAG, in contrast, is positioning itself as a hybrid Layer 1 capable of scaling decentralized applications and crypto mining while maintaining high throughput and strong network security.

Ethereum: Battle-Tested, But Burdened by Scale

Ethereum’s recent breakout above $3,000 follows months of consolidation and reflects the broader market’s optimism around its long-term value proposition. The successful shift to proof-of-stake, strong developer activity, and over $90 billion in total value locked position Ethereum as the most established platform in the space.

However, this dominance comes with structural complexity. Ethereum still relies on Layer 2 solutions to resolve its scalability challenges, and its performance during periods of congestion remains a bottleneck for mass adoption.

Yes, ETH broke $3,000. But many are asking: how much upside remains from here? For Ethereum to double, it would need to add another $350B+ in market cap, possible, but not fast.

Stellar: Fast Payments, Big Momentum

Stellar, by contrast, has focused on simplicity and speed in payment processing. This design philosophy has enabled the network to capture a niche within cross-border remittances and enterprise settlement infrastructure. Over the past week, Stellar’s native token XLM surged significantly, buoyed by a flip in resistance zones and a favorable technical setup. Momentum indicators such as the RSI and MACD point to continued buyer interest.

Despite this bullish run, Stellar’s long-term scalability and developer engagement remain limited compared to platforms with more general-purpose capabilities. Its lack of Ethereum Virtual Machine (EVM) compatibility further restricts the ecosystem’s flexibility in hosting a diverse range of decentralized applications.

BlockDAG: The Hybrid Architecture Powering Up Pre-Launch

BlockDAG has emerged as a notable alternative. Combining the security of Bitcoin’s proof-of-work mechanism with the scalability of Directed Acyclic Graph (DAG) architecture, BlockDAG proposes a novel hybrid consensus model that could address the historical trade-offs between speed, decentralization, and throughput. The platform’s infrastructure is designed to process over 15,000 transactions per second, making it one of the most scalable base layers currently in development.

In addition to technical innovation, BlockDAG has prioritized accessibility and interoperability. It is fully compatible with the Ethereum Virtual Machine, allowing developers to port smart contracts from Ethereum without friction. Furthermore, it features a low-code smart contract builder, which lowers the barrier to entry for non-technical users. Its cloud-based mobile mining application, X1, has already attracted over two million users, reflecting the project’s success in reaching a global, mobile-first audience.

BlockDAG’s presale performance further distinguishes it from historical Layer 1 launches. With more than 23.8 billion coins sold and over 200,000 holders onboarded to date, the project has already achieved traction that typically eludes early-stage protocols. Miner sales have exceeded 18,000 units, and its upcoming Global Launch release is expected to further expand the network’s ecosystem and visibility. Notably, BlockDAG has secured partnerships with professional sports organizations such as the Seattle Seawolves and Seattle Orcas, signaling its strategic push into mainstream branding and real-world integration.

While Ethereum and Stellar continue to offer established paths within their respective lanes, general-purpose dApps for the former and payment rails for the latter, BlockDAG is positioning itself at the convergence of several trends: scalable consensus design, inclusive mining infrastructure, and rapid ecosystem expansion through Web3 tools and real-world sponsorships.

Final Take

From an investment perspective, Ethereum provides stability and maturity, but may see more tempered gains due to its already significant market capitalization. Stellar presents a compelling near-term technical setup, but its long-term versatility is still in question. BlockDAG, meanwhile, offers outsized return potential given its low presale entry price of $0.0016 and growing adoption base. With the presale nearing its final stages and the $600 million target within reach, the opportunity window for early access is narrowing rapidly.

In sum, while Ethereum and Stellar continue to evolve along their respective trajectories, BlockDAG is emerging as a high-conviction candidate for investors looking to participate in the next generation of Layer 1 platforms. The coming months are likely to determine how these three networks position themselves for the next cycle of decentralized innovation.