Key Takeaways
- XYO Layer One has launched its mainnet.
- Movement Network also announced its migration from L2 to L1.
- As independent Layer 1s, both platforms will increase their throughput.
XYO and Movement Network are blockchain platforms that initially relied heavily on Ethereum, the former as a sidechain and the latter as a modular Layer 2 rollup solution.
But seeking efficiency and increased throughput, on Tuesday, Sep. 16, both migrated to their own sovereign Layer 1 blockchains.
Sidechains vs. L2s
Sidechains and rollups essentially anchor blockchain value and/or security in Ethereum.
Sidechains are independent blockchains with their own network and consensus rules. However, they are tethered to Ethereum via a bridge, rooting the underlying value of tokens like XYO and stablecoins in Ethereum-native assets.
Meanwhile, L2s like Movement are more dependent on the Ethereum base layer, from which they inherit security guarantees, censorship resistance, and certain trust assumptions.
The Problem With Ethereum
Because they ultimately rely on mainnet Ethereum transactions, both sidechains and L2s risk being throttled by Ethereum’s low throughput.
When Ethereum blockspace is congested, the cost of posting data skyrockets. This makes rollup transactions more expensive, even if execution on the L2 itself is cheap.
Meanwhile, for sidechains that use Ethereum as a liquidity hub, mainnet congestion creates a drag on deposits and withdrawals, which require interacting with the bridge contract.
Movement Network Migration
Launched in March 2025, Movement Network is a set of modular and configurable rollups that provide a platform for deploying interoperable, application-specific chains.
The platform initially functioned as a hybrid L2, using the Move language and virtual machine for smart contract programming, while settling transactions on the Ethereum base layer.
“Movement’s transition to L1 represents our commitment to listening and responding to our community’s needs, “ Movement Labs CEO Torab Torabi told CCN.
“Through extensive feedback from users, builders, and partners, we identified key areas where our modular approach had reached its limits,” Torabi added.
For starters, while the platform could support over 10,000 transactions per second (TPS), the L2 architecture limited it to 500-600 TPS.
Moreover, as with other L2s, Movement’s reliance on a centralized sequencer created a “single point of failure that affected network reliability,” Torabi noted.
Finally, the migration will enable new features that weren’t possible with the previous design, including native staking and Move 2.0 support.
XYO Mainnet Launch
Initially launched in 2018, XYO functions as a decentralized location verification system, and has a good claim to being one of the first decentralized physical infrastructure networks (DePINs).
Anchoring trust and security in Ethereum’s established network, the platform was able to scale faster and tap into the larger blockchain’s existing liquidity and user base.
Fast-forward to 2025, however, and XYO has grown a sufficiently large network that it no longer needs to piggyback off a more established chain.
First announced in April, XYO Layer One launched its mainnet on Tuesday, Sept. 16.
As with Movement Network, the migration to a sovereign L1 helps overcome Ethereum’s limited throughput.
“Rather than competing for block space with financial transactions on general-purpose chains, XYO Layer One is optimized for high-volume data validation, settlement, and interoperability,” co-founder and CTO Arie Trouw explained to CCN.
The migration was executed to be seamless for everyday users of XYO applications like COIN, which rewards users for providing location data from their mobile devices.
“They will continue to collect and contribute data as before,” Trouw said.
“What changes is the efficiency and utility behind the scenes: the data they contribute can now be processed directly on XYO Layer One, benefiting from lower fees, higher throughput, and better integration with partners.”
Consequences for Ethereum Dominance
The migration of two platforms to their own independent blockchains runs counter to the wider trend of increasing Ethereum alignment.
Moving in the opposite direction, former L1s like Celo, Ronin Network and Lisk increasingly look like L2s as they chase improved interoperability and simpler infrastructure.
However, both XYO and Movement will maintain some links to Ethereum.
XYO retains key aspects of Ethereum’s design and Ethereum block numbers function as a proxy for time in its transaction finalization process.
Likewise, Movement Network hasn’t abandoned Ethereum alignment. Rather, the migration represents a “strategic evolution” of its original premise, Torabi stressed.
“MOVE remains a native multi-chain token, maintaining its presence as both ERC-20 on Ethereum and as a Fungible Asset on Movement,” enabling “advanced cross-chain capabilities that combine the best of both ecosystems,” he said.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
