Author: Prem Reginald, CoinGecko; Compiler: Deng Tong, Jinse Finance
After emerging from difficulties, 2024 is an exciting year for Layer 1 (L1) blockchains, with token prices surging over 7,000% since January. In the rapidly evolving cryptocurrency space, some unexpected tokens are reclaiming top positions this year. Let’s take a closer look at the biggest L1 winners and losers of 2024.
Market overview
In 2024, driven by Donald Trump's presidential election victory, the cryptocurrency market has shown a vertical trend. With L1 solutions providing a platform for dApps and smart contracts, demand for L1 solutions has surged, leading to fierce competition among L1 blockchains vying for the top spot. However, they face intense competition from Layer 2 solutions aimed at increasing transaction speeds at a fraction of the cost of established blockchains like Ethereum.
What are the best-performing Layer 1 tokens?
Among the best-performing tokens, Mantra (OM) has experienced unprecedented growth, with its value soaring by 7,035.2%. This growth is partly attributed to Mantra's collaboration with Zand, a digital bank based in the UAE that allows for the tokenization of real-world assets (RWA) in compliance with the Dubai Virtual Assets Regulatory Authority (VARA). Additionally, demand for RWA products has increased as traditional financial institutions bring their money market funds and bonds onto the blockchain.
In addition, the AIOZ Network (AIOZ) is another standout token, growing 427.6% year-to-date (YTD). Driven by an expanding ecosystem, the adoption of the platform's decentralized content delivery network continues to rise. Sui (SUI) ranks in the top three with a 388.2% year-to-date growth, benefiting from its growing attractiveness within its ecosystem, including the launch of innovative dApps that leverage its scalability and developer-friendly features.
Other standout tokens include Bellscoin (BELLS) (+252.2%), Zano (ZANO) (+159%), and Toncoin (TON, +136.2%), with the latter successfully leveraging its integration with Telegram to host dApps and play-to-earn games.
The top 10 Layer 1 tokens by market cap have all shown moderate growth
Despite the explosive growth of small to medium-sized Layer 1s, larger market cap tokens like Bitcoin, Ethereum, and Solana have proven to be reliable investments. Bitcoin (BTC) has shown positive growth, increasing by 112.9% year-to-date, while Ethereum (ETH) has grown by 34.9%, lagging behind other tokens. With the emergence of new Layer 2s and other blockchains, Ethereum's dominance in this space has gradually weakened over the years. Nonetheless, it has still successfully outperformed the S&P 500 index, which rose by 24.8% in 2024.
Solana (SOL) has risen significantly by 134.3% from the ashes of the 2022 FTX bankruptcy. Most of its gains occurred in 2023, driven by the memecoin frenzy, with its price skyrocketing from $15 to $120. This trend has also shifted to blockchains like Tron Network (TRX), which has grown by 85.5% year-to-date. On the other hand, Toncoin (TON) achieved an impressive 136.2% growth by hosting dApps on the popular messaging app Telegram, where tap-to-earn games have become very popular.
The most significant increase was seen in Sui, which has grown 338.2% year-to-date. This rise is driven by increased investor interest, a surge in on-chain activity, and the expansion of utility brought on by significant dApp growth. Additionally, Circle's USDC has been integrated into the network, and there has been observed capital migration from Ethereum to Sui.
Biggest losers
On the other hand, several tokens have seen declines of up to -96% year-to-date. Tokens like Entangle (NGL) have experienced the largest drop at -95.3% this year, followed by Kujira (Kuji) and Trias Lab (TRIAS), which fell by -86.7% and -83.4%, respectively. NGL launched in March 2024 at a relatively high valuation and has since been on a downward trend. Conversely, Kujira's performance has been impacted by the team's high-risk leveraged liquidity positions, which backfired during market volatility.
How do Layer 1 tokens launched in 2024 perform?
Several Layer 1 cryptocurrencies launched in 2024 have shown mixed results, reflecting the challenges of entering a competitive market. Aleo (ALEO), launched in September, has dropped -58.1% since its debut, while Saga (SAGA), launched in April, has faced a similar predicament, down -69.9% year-to-date. The Omni Network (OMNI), which started in April, has fallen -68.8%, and Zeta Chain (ZETA), launched in February, has seen a decline of -57.3%.
Router Protocol (ROUTE), launched in July, fell by -24.8%, while the active Ice Open Network (ICE) has decreased by -34.5% since January, a smaller decline. Meanwhile, the recently launched Kaia (KAIA) at the end of October saw a slight increase of 5.2%. These performances highlight the volatility of new L1 projects and the necessity for ongoing innovation and adoption to gain traction.
Top 10 Layer 1 by price performance
Conclusion
In 2024, the performance of L1 blockchains has been mixed. Mantra's astonishing 7,035% year-to-date increase leads the way, thanks to strategic partnerships and cutting-edge blockchain use cases. Established players like Bitcoin, Solana, and Toncoin have also performed well, proving their resilience in an evolving market. Meanwhile, newly launched tokens face an uphill battle due to their high valuations.
As competition intensifies between Layer 1 and Layer 2 solutions, the focus on scalability, usability, and regulatory compliance will determine the next wave of winners in the ever-evolving crypto space.
