Cryptocurrency Emissions in March 2025: Layer 1 and Liquid Staking Lead the Charge

The cryptocurrency market is still maturing, and it keeps developing new trends that point toward the prominence of certain sectors and tokens.

A recent sector-based emissions analysis pegs Layer 1 and liquid staking projects as the top emitters, with other sectors like AI and modularity also seeing some growth. As of March 2025, overall emissions had ballooned to $3.94 billion, a reflection of the heightened activity and investment in these new crypto landscape hotspots.

Layer 1 and Liquid Staking Dominate the Emissions Landscape

Layer 1 blockchain projects are the leading contributors to emissions by a substantial margin. Here, I must call the tokens themselves out for being the real offenders. BERA, SUI, and SOL are among the best-known Layer 1 tokens, and in emitting around $1.6 billion across the various dApps and smart contracts that they underlie, they’re not making the situation any better. Layer 1 blockchains, which serve as the basis for many decentralized applications (dApps) and smart contracts, continue to drive substantial amounts of activity in the market. As these networks grow and mature, they require more resources to maintain and expand, contributing to the higher emissions numbers.

The most prominent token in this sector is SOL, which stays a leading player among Layer 1 blockchains. Emissions are at $367 million next month and are set to keep Solana as a top focus for developers and investors. With almost no downtime over its three-year lifespan, high throughput, and low transaction costs, Solana consistently earns a spot as one of the top platforms in the blockchain space. And while Solana’s ecosystem will face challenges typical of any rapidly evolving platform, it seems well situated to keep staking a leading position among Layer 1 projects.

Liquid Staking, a second dominant sector, has contributed another $1 billion to the total emissions count. It is also an area in which I do most of my work. To date, most of the protocols we’ve analyzed have not had a very significant emissions footprint. This is great news for us as we advance our mission. Still, 7.6% of emissions is not trivial. And ENA is not just any liquid staking protocol. It’s the liquid staking protocol with the most emissions in the entire space.

Liquid staking is receiving attention in the Ethereum ecosystem since it enables users to stake assets in a liquid form. The locked assets in the Ethereum protocol cannot be easily unlocked, which curtails the DeFi movement. Thus, there might be a situation where staking on Ethereum might hinder the DeFi movement, which is not intended by the Ethereum protocol or its developers. If these assets are being staked and are part of a DeFi application, they erode the finality of the Ethereum protocol.

AI and Modularity Continue to Gain Ground

Although Layer 1 and liquid staking are still the dominant forces regarding emissions, other sectors, such as AI and Modularity, are also quite active. The AI sector, powered by projects like WLD, TAO, and QAI, saw emissions of $488.7 million, underscoring an intensifying interest in artificial intelligence and machine learning in the crypto space. These tokens are unleashing considerable potential, with AI technologies becoming further integrated into our blockchain future. The demand for AI-enabled solutions is only set to increase in coming years, with the power of artificial intelligence being leveraged for more decentralized applications across industries.

Increased emissions also affect the Modularity sector, Layer 2 solutions, and meme tokens. Notable contributors to the emission surge from these sectors are TIA, ARB, and MELANIA tokens. While the emissions from these sectors may be rising, so too is our attention toward tokens designed with modularity in mind. Emission increases from modularity-related tokens could offer an opportunity for developers to build even more efficient decentralized applications, given that these tokens promise greater scalability and interoperability across different blockchain platforms. However, working against this potential is our ongoing concern with the rising emissions associated with meme tokens and other speculative projects.

Emissions Breakdown and Trends

Next month, emissions totaling $3.94 billion will be distributed across these various sectors, with ENA, SOL, and WLD leading the pack. Analyzing the emissions reveals a clear trend. Layer 1 blockchains and liquid staking are by far the most dominant sectors, with WAY outperforming the next nearest sector, which is considerably ahead of the others. Still, WAY serves as a reminder that the emissions picture is getting much more colorful, with a lot more canvas to work with, thanks to this newfound expression of AI, modularity, and meme tokens.

An essential trend to observe is the persistent solidity of liquid staking and Layer 1 initiatives, which are sturdily built and have continuing investment attraction. These sectors present scalable solutions with real utility, putting them at the forefront of the blockchain world. Conversely, the imminent token unlocks from the AI sector and the ever-increasing emissions from our focus on modularity point to new technologies under development. These tech-focused projects promise to deliver innovative and exciting products that will shape the cryptocurrency world of tomorrow.

The trend of rising emissions across different sectors seems set to continue as the maturing technology of blockchain serves to integrate its newer applications into society. The appearance of liquid staking and AI-driven decentralized networks is expected to raise emissions even more. Layer 1 blockchains like Solana and Ethereum remain central to the ongoing growth of the cryptocurrency market, which seems set to continue as well.

Conclusion

The emissions data for March 2025 paints a clear picture of the direction in which the cryptocurrency market is headed. With Layer 1 and liquid staking leading the charge, then the growing influence of AI and modularity coming up behind them, the market is seeing some significant shifts as new sectors of the crypto space gain prominence. As emissions rise, both investors and developers are going to be watching these shifts very closely for signs of sustainable, long-term stability and growth. The total emissions figure for next month? A cool $3.94 billion. Hard not to see that as some kind of watershed moment for the crypto space.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.

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