The ecological structure of the crypto market can actually be understood as a pyramid, with each layer having different characteristics and risks, from the foundational bottom to the upper applications.

The tip of the pyramid is Bitcoin (BTC), serving as the cornerstone of the entire market. BTC is not an ecosystem; it is an independent store of value. This layer is the most stable and carries the lowest risk.

Above that is the payment and settlement layer. Projects like Litecoin (LTC), Monero (XMR), Ripple (XRP), Stellar (XLM), and Bitcoin Cash (BCH) mainly address payment and settlement issues. They have clear application scenarios, but their dependence on Bitcoin is increasing.

Next is the infrastructure layer. Projects such as Ethereum Classic (ETC), Chainlink (LINK), Stacks (STX), and Cardano (ADA) provide underlying service support. Their role is to build the foundation for other applications, and their risks are correspondingly higher.

Above that is the smart contract and L1/L2 ecosystem. Chains like Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Polkadot (DOT), Near (NEAR), Cosmos (ATOM), Tron (TRX), Aptos (APT), and Sui (SUI) provide runtime environments for various applications. Their ecosystems are more complex, with more participants, and their risks are more dispersed but harder to control.

At the very top of the pyramid is the application layer, especially the DeFi ecosystem. Projects like Uniswap, Curve (CRV), PancakeSwap (CAKE), Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Filecoin (FIL), Dogecoin (DOGE)…… this layer has many projects, rapid iteration, but the highest risk.

The core logic is clear: the higher the layer, the greater the risk, and the stronger the dependence on the underlying layers below. The security and prospects of upper-layer projects ultimately depend on the underlying infrastructure and the overall market environment.