The Layer 1 Fallacy refers to the misguided belief that merely pursuing high-profile, premium Layer 1 blockchain projects can lead to lasting success and significant returns, all while overlooking the fundamental substance, technology, and use cases that underpin these platforms. In reality, investors and developers may become enamored with the hype and perceived prestige of these networks, failing to recognize that without a solid foundation of innovation, practical applications, and community support, such projects are unlikely to sustain long-term value or relevance in an ever-evolving technological landscape. Ultimately, this fallacy serves as a cautionary tale about the importance of focusing on the underlying qualities and potential of blockchain solutions rather than being swayed solely by their market imagery or celebrity status.
source: https://www.coindesk.com/coindesk-indices/2025/08/06/the-layer-1-fallacy-chasing-premium-without-substance