The post Layer 1 chains need to move beyond speed: Sonic Labs CEO appeared on BitcoinEthereumNews.com.

Mitchell Demeter, CEO of Sonic Labs, explains what layer 1 blockchains need to do today to stay competitive. Summary Layer 1 networks used to compete on speed and transaction costs alone However, with an increased number of chains, the key is user and developer retention Sonic is rolling out several upgrades to reward token holders As block space becomes increasingly commoditized, blockchain projects are under pressure to prove they can deliver sustainable business models instead of short-term speculative narratives. In an interview with crypto.news, Demeter describes how Sonic is shifting its strategy toward builder stickiness and long-term value capture. Crypto.news: Layer 1 networks spent years competing on speed and fees. You’ve said that phase is over. What should chains be optimizing for now? Mitchell Demeter: Back in 2020 and 2021, the landscape was very different. When you were comparing chains against Ethereum, being faster and cheaper was a major differentiator. That attracted a lot of builders and users to different layer 1s and layer 2s. Back then, the primary battle was basically: who can be the fastest and who can offer the best user experience. But now, the landscape has shifted. We have a lot of fast and cheap chains. Block space has effectively become commoditized. Now the real battle is: who can attract users, attract builders, and actually keep them. There has to be more of a moat. I came in as CEO two months ago, and now we’re going through a shift at Sonic. We need to differentiate the chain through protocol-level changes and Ethereum Improvement Proposals to make the builder environment more conducive, unique, and sticky. Builders, users, and capital move very easily today. Being fast and being cheap is no longer enough. There has to be a reason for them to stay on your chain. CN:…

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Filed under: News - @ November 27, 2025 9:21 pm