XYO Network, a decentralized physical infrastructure network (DePIN) project with over 10 million nodes, has launched its purpose-built Layer-1 blockchain and a new utility token, XL1. The announcement was made on September 16, 2025, marking a significant milestone for the project, which reported $8.8 million in revenue in 2024 and attracts 80% of its users from outside the crypto space.
The new blockchain, dubbed XYO Layer One, is specifically designed to handle data-heavy applications across sectors such as artificial intelligence (AI), logistics, real-world assets (RWA), and cloud services. Unlike general-purpose chains, it offers verifiable and scalable data solutions with low latency, addressing limitations in existing blockchain networks that struggled with high-efficiency data processing.
Concurrently, XYO introduced XL1, a native utility token for transactional functions on the Layer-1 network, including gas fees, smart contract execution, and on-chain rewards. XL1 tokens are earned by staking XYO, which locks the original XYO tokens within the network. This mechanism is intended to reduce XYO's circulating supply over the long term, potentially supporting its price appreciation.
Following the launch, XL1 was listed on several major exchanges, including Kraken, KuCoin, Gate.io, MEXC, and CoinDCX. The token initially surged from $0.0017 to $0.0032 within three hours but subsequently crashed over 51.5% due to profit-taking by early investors and airdrop recipients. In contrast, XYO's price gained 6.5%, breaking out of a descending trendline that had persisted since mid-July. Technical indicators, including a bullish Aroon Up reading of 100% and support at the 50-day simple moving average ($0.010), suggest potential for a 30% rally toward $0.013.