In the ever-thriving world of cryptocurrencies, many eyes naturally gravitate toward the heavyweights: Bitcoin, Ethereum, and maybe a handful of altcoins riding the wave of hype and momentum. But beyond the flash and dazzle of the top-tier tokens, there’s a whole realm of layer 1 blockchain projects flying under the radar—some of which hold intriguing potential yet are widely overlooked.
Why Layer 1, You Ask?
Layer 1 blockchains form the foundational base of ecosystems where decentralized applications (dApps), smart contracts, and tokens interact. While Ethereum dominates this space in name recognition and developer activity, its ongoing challenges—high gas fees, slower speeds—have prompted both users and developers to scout for alternatives that promise similar or better fundamentals with more scalability and lower costs. This search paves the way for undervalued layer 1 projects to capture future mindshare and market value.
So, which layer 1 blockchains are underappreciated gems worth a second glance? Here’s a glance at a few that fly just below the radar:
1. Fantom (FTM)
Fantom’s directed acyclic graph (DAG) architecture sets it apart by enabling near-instant finality and extremely low fees. While projects like Avalanche have grabbed plenty of headlines, Fantom quietly hosts a fast-growing DeFi ecosystem that benefits from its efficient consensus mechanism. Despite these merits, FTM’s market cap hasn’t soared to the heights you’d associate with its tech, presenting an interesting entry point for those looking beyond the mainstream.
2. Harmony (ONE)
Harmony focuses on sharding and cross-chain interoperability, which in theory should help tackle the scalability trilemma head-on. It supports Ethereum smart contracts and even bridges assets seamlessly across chains. Despite these technical strengths and partnerships, it remains relatively unknown outside niche crypto circles, making it a project worth watching for long-term bullish bets.
3. Near Protocol (NEAR)
Although NEAR has been gaining some spotlight lately, it still tends to fly under the radar compared to Ethereum and Solana. Its user-friendly development environment and clever sharding mechanisms help create a scalable network that’s developer- and user-friendly. The project boasts vibrant community support and notable institutional partnerships, suggesting a strong foundation, but its token valuation often lags behind the hype.
4. Velas (VLX)
Velas combines Solana’s speed with AI-enhanced features for improved scalability and security. It’s among the few projects experimenting with self-optimizing blockchains where machine learning improves network performance dynamically. This futuristic approach might not have mainstream appeal yet, but could become disruptive as the crypto space matures.
Why These Projects Might Still Be Undervalued
Several factors contribute to these projects’ undervaluation. For one, market sentiment often chases narratives and brand recognition more than pure technology or long-term viability. Newer or less media-savvy projects may maintain solid fundamentals and developer commitments without the buzz—hence staying fairly priced or undervalued.
Crypto’s notorious volatility also means innovations can be temporarily ignored or misunderstood, especially when there’s nervousness around macroeconomic trends, regulatory uncertainty, or the success of competing chains.
Finally, the complex technical nuances that set these projects apart aren’t always appreciated by casual investors or the broader community. Layer 1 blockchains require deep dives and patience to understand how they may revolutionize dApps, DeFi, gaming, or NFTs down the line.
A Word of Caution and Opportunity
Jumping into lesser-known blockchains comes with risks—smaller ecosystems can struggle with liquidity, adoption, or sustained developer interest. It’s wise to keep an eye on project activity levels, backing teams, governance models, and community enthusiasm. Yet, those who find undervalued layer 1 projects early could be better positioned when the market eventually rewards real innovation over hype.
If you’re willing to peer beyond the noise, layer 1 crypto projects like Fantom, Harmony, NEAR, and Velas offer fertile ground for discovery. Their blend of advanced tech, scalability solutions, and growing ecosystems might just be the quiet undercurrent that repaints the blockchain landscape in the years ahead—long before the mainstream realizes their true value.
