Xai (Xai), Orbs (ORBS), Degen (degen), Dream Machine Token (DMT), Cartesi (CTSI) are 5 l3 crypto projects to watch

The Layer-3 protocol is the pinnacle of blockchain evolution, building on Layer-2 solutions to provide exceptional scalability and customization

In the dynamic landscape of blockchain technology, Layer-3 protocols are emerging as the pinnacle of innovation, building upon the advancements of Layer-2 solutions to provide exceptional scalability and deep customization possibilities for specific dApps (decentralized applications).

While Layer-2 protocols focused on expanding the capacity of Layer-1 chains, such as Bitcoin and Ethereum, Layer-3 protocols take a different approach. They are not designed to be generic frameworks like L2s but rather offer customizable modular units that can be assembled to create dApps tailored for diverse use cases.

This approach is particularly well-suited for dApps requiring high levels of computational power, such as blockchain-based games or metaverse applications.

As investors search for promising tokens in April 2025, here are five L3 crypto projects that are making waves in the industry.

Xai

Xai (XAI) is a decentralized gaming ecosystem designed and maintained by a collective of autonomous entities. These entities come together to build and deploy blockchain-based games, in addition to providing the fundamental infrastructure required for the project’s operation.

The project is not run by a central team or single authoritative figure. Instead, it comes from a number of key entities that each have different roles.

As the initiative develops, it is expected that more parties will come on board through various channels, forming a decentralized union to support the project’s growth and governance.

In the lineup of Layer 3 crypto projects, Xai emerges as one of the strongest candidates. This project showcases the tremendous potential of Layer 3 blockchain technology in revolutionizing the crypto world.

Xai’s focus as one of the leading projects in Layer 3 foreshadows a more sophisticated and purposeful future for blockchain technology.

Orbs

Among the lineup of Layer 3 blockchain projects, Orbs (ORBS) is emerging as a noteworthy contender. It offers a robust public blockchain infrastructure, designed to address the need for scalability, low cost, high performance, security, and ease of use.

Positioned as a platform ready for mass adoption, Orbs provides a complete blockchain technology stack that can support various types of applications. At the core of the platform are the values of decentralization, transparency, and openness, which are well suited for large-scale enterprise and consumer applications that require practical blockchain solutions.

The ecosystem’s native token, ORBS, plays a critical role in the system – from calculating commissions on applications to incentivizing validators. It is the only means of payment in the Orbs ecosystem, and the main foundation for the network’s safe and reliable operation.

Founded in 2017, Orbs is backed by an experienced team of engineers, entrepreneurs, and researchers. With blockchain virtualization technology and Randomized Proof-of-Stake (RPoS), Orbs offers innovative solutions to address scalability issues.

Degen

The dough

Degen (DEGEN) is an up-and-coming Layer 3 token, rising in popularity particularly within the gaming and NFT sectors. The project provides a scalable and low-cost ecosystem, specifically designed to meet the needs of the gaming industry and NFT market.

Leveraging the advantages of Layer 3 technology, Degen is able to provide high-speed transactions without compromising on security, making it an ideal platform for gamers and digital creators.

Degen’s main advantage lies in its decentralized staking and governance model, where DEGEN tokens are used for staking, voting in governance, as well as community rewards.

Moreover, the platform is designed to integrate seamlessly with Layer 1 and Layer 2 networks, supporting broad interoperability across the blockchain ecosystem.

As it grows, Degen aims to bring more immersive and profitable experiences to developers and users, especially in the world of gaming and crypto.

Dream Machine Token

In the lineup of Layer 3 tokens that are predicted to shine this year, Dream Machine Token (DMT) steals the show with its innovative approach.

The Dream Machine is a revolutionary project that comes as a gaming console and digital arcade machine, built natively on the Arbitrum network (ARB), and designed specifically to deliver NFT and token-based gaming experiences. The project is spearheaded by Sanko GameCorp, and promises a series of unique gaming adventures within The Dream Machine ecosystem.

So, what is the role of DMT in this immersive gaming world?

The $DMT token is the main asset that supports all the games in the Dream Machine ecosystem – it can be likened to the physical coins or tokens used to play on arcade machines.

DMT tokens are used every time players play the game, as well as being the main transaction tool in the game economy, such as to purchase items, power-ups, character upgrades, and unlock new levels or stages.

Interestingly, players can also earn rewards in the form of $DMT for their achievements in the game.

DMT is designed with a scarcity mechanism. Most DMT tokens are distributed to the public through pre-sales and airdrops, and to keep the supply under