Author: Prem Reginald
Translation: Plain Language Blockchain
Encouraged by Donald Trump's victory in the presidential election, the 2024 cryptocurrency market has shown a vertical growth trend. As a platform for decentralized applications (dApps) and smart contracts, the demand for Layer 1 solutions has surged, leading to fierce competition among major Layer 1 blockchains for top positions. However, they face strong challenges from Layer 2 solutions, which aim to enhance transaction speeds at very low costs, thus competing with established blockchains like Ethereum.
1. Which Layer 1 Tokens performed the best?
Among the best-performing Tokens, Mantra (OM) achieved unprecedented growth, with its value skyrocketing by 7,035.2%. This surge was partly due to Mantra's collaboration with Zand, a digital bank based in the UAE. Zand facilitated the tokenization of real-world assets (RWA) by complying with the regulations of the Dubai Virtual Assets Regulatory Authority (VARA). Furthermore, the demand for RWA products continues to grow, with traditional financial institutions introducing money market funds and bonds onto the blockchain.
2. Other Tokens that performed well
AIOZ Network (AIOZ) is another standout performer, growing 427.6% year-to-date. The platform's decentralized content distribution network has seen increasing adoption due to ongoing ecosystem optimizations. Following closely are Sui (SUI), with a YTD growth of 388.2%, benefiting from rapid development within its ecosystem, including the launch of innovative dApps leveraging its high scalability and developer-friendly features.
Other notable performers include:
Bellscoin (BELLS): Growth of 252.2%
Zano (ZANO): Growth of 159%
Toncoin (TON): Growth of 136.2%, successfully hosting dApps and launching 'click-to-earn' games through integration with Telegram.
3. The top ten Layer 1 Tokens by market cap showed moderate increases
Despite the astonishing performance of small and mid-cap Layer 1 Tokens, larger market cap Tokens like Bitcoin, Ethereum, and Solana remain robust investment choices.
Bitcoin (BTC) achieved an annual growth of 112.9%.
Ethereum (ETH) grew 34.9%, but did not perform as well as its peer Tokens. With the rise of new Layer 2 solutions and other blockchains, Ethereum's dominance has been declining year by year, despite the recent launch of a spot Ethereum ETF in the US. However, Ethereum still outperformed the S&P 500 index, which rose 24.8% in 2024.
Solana (SOL): Rising from the ashes
Solana (SOL) has risen from the shadow of the 2022 FTX bankruptcy, growing 134.3% year-to-date. Most of its gains occurred in 2023 when, propelled by the memecoin frenzy, the price soared from $15 to $120. This trend has also extended to other blockchains, such as Tron Network (TRX), which grew 85.5% this year.
Meanwhile, Toncoin (TON) recorded an impressive growth of 136.2%, mainly due to its ability to host dApps on the popular messaging app Telegram. The 'click-to-earn' gaming model has become extremely popular on Telegram, further driving its growth.
Sui: The most eye-catching performance
Sui has performed the best this year, with a growth of 338.2%. This increase is mainly due to the rising interest from investors, the growth of on-chain activities, and the usability improvements brought by significant dApp expansions. Additionally, Circle's USDC has been integrated into this network, and a trend of funds moving from Ethereum to Sui has been observed.
4. Largest declines
On the other hand, some Tokens have seen declines of up to -96% year-to-date.
Entangle (NGL) performed the worst, down -95.3% year-to-date.
Following closely are Kujira (KUJI) and Trias Lab (TRIAS), down -86.7% and -83.4%, respectively.
NGL was launched in March 2024 at a high valuation and has subsequently seen a continuous decline in price. Meanwhile, Kujira's performance has been affected by the team's high-risk leveraged liquidity positions, which backfired during market volatility.
5. How did Layer 1 Tokens issued in 2024 perform?
Various Layer 1 cryptocurrencies launched in 2024 have shown diverse performances, reflecting the challenges of breaking through in a competitive market.
Aleo (ALEO) was launched in September and has fallen -58.1% since its release.
Saga (SAGA) was launched in April and has faced similar challenges, down -69.9% year-to-date.
Omni Network (OMNI), also launched in April, has decreased by -68.8%.
Zeta Chain (ZETA) was released in February and has since fallen -57.3%.
Performance of Router Protocol (ROUTE) and other new projects
Router Protocol (ROUTE) launched in July, with a price drop of 24.8%, while Ice Open Network (ICE) has seen a relatively smaller decline of 34.5% since becoming active in January. Meanwhile, Kaia (KAIA), which entered the market no later than the end of October, achieved a slight positive growth of 5.2%. These performances reflect the volatility of new Layer 1 projects and the importance of ongoing innovation and user adoption for gaining market recognition.
6. The top ten Layer 1 projects ranked by price performance
Note: YTD is an abbreviation for Year-to-Date, meaning 'from the beginning of this year to now.' It is commonly used to describe the performance of a metric (such as returns, price changes, or performance) over the period from the start of the year (usually January 1) to the current date.
7. Conclusion
In 2024, the Layer 1 blockchain sector has shown diverse performances. Mantra leads with a staggering YTD increase of 7035%, thanks to its strategic partnerships and cutting-edge blockchain use cases. Established players like Bitcoin, Solana, and Toncoin have shown stable performances, proving their resilience in a changing market. Meanwhile, newly issued Tokens face significant challenges, often struggling due to starting at high valuations.
As competition intensifies between Layer 1 and Layer 2 solutions, the focus on scalability, usability, and compliance will determine the emergence of the next wave of winners, especially important in this fast-paced crypto market.
Note: This study analyzed the price performance of the top 100 cryptocurrencies by market cap in the Layer 1 category on CoinGecko. The YTD growth data covers performance from January 1, 2024, to November 18. These data reflect a snapshot of the market, showing the performance differences among various coins in a broader market context.
