As far as fulfilling the requirements of progress bar functionality both ideas probably work ok:
- How long a particular activity will take?
- What’s the current status now?
- How close the user is to completing the task?
But I would vote for option 1 as being more intuitive.Simply because it seems to be more commonly used. Take a look at some games for reference majority of those would use option 1 in combination with a label for current and next level to reach.
Probably because every time a level is passed user gets the satisfaction of seeing the progress going from relative 0 to relative 100% completion, where option 2 would only show the progress from relative 70% to 100% or so.
Here are some additional resources that might help you to reach a final decision: