Author: Prem Reginald
Translation: Plain Language Blockchain
Inspired by Donald Trump's presidential election win, the cryptocurrency market in 2024 has shown a trend of vertical growth. As a platform for decentralized applications (dApps) and smart contracts, the demand for L1 solutions has dramatically increased, with major L1 blockchains fiercely competing for top positions. However, they face strong challenges from Layer 2 (L2) solutions, which aim to enhance transaction speeds at extremely low costs, thereby 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 soaring by 7,035.2%. This surge is partly due to Mantra's partnership with Dubai-based digital bank Zand. Zand has enabled the tokenization of real-world assets (RWA) by complying with the Dubai Virtual Assets Regulatory Authority (VARA) regulations. Additionally, the demand for RWA products continues to grow, with traditional financial institutions increasingly incorporating money market funds and bonds into the blockchain.
2. Other outstanding Tokens
AIOZ Network (AIOZ) is another strong performer, with a year-to-date (YTD) growth of 427.6%. The platform's decentralized content distribution network has seen increasing adoption driven by ongoing ecosystem optimizations. Also in the top three is 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 have seen moderate gains
Despite the impressive performance of small and mid-cap Layer 1 Tokens, large-cap Tokens like Bitcoin, Ethereum, and Solana remain solid investment choices.
Bitcoin (BTC) achieved an annual growth of 112.9%.
Ethereum (ETH) grew by 34.9%, but underperformed compared to similar Tokens. With the rise of new Layer 2 and other blockchains, Ethereum's dominance has been declining year by year, even though the U.S. launched a spot Ethereum ETF. However, Ethereum still outperformed the S&P 500 index, which rose by 24.8% in 2024.
Solana (SOL): Rising from the Ashes
Solana (SOL) has risen from the shadows of the 2022 FTX bankruptcy, with a YTD growth of 134.3%. Most of its increase occurred in 2023, when the price surged from $15 to $120, driven by a memecoin frenzy. This trend has also extended to other blockchains, such as Tron Network (TRX), which has seen an 85.5% growth 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' game model has become extremely popular on Telegram, further fueling its growth.
Sui: The most eye-catching performer
Sui has performed the best this year, with a growth of 338.2%. This increase is mainly attributed to the rise in investor interest, growth in on-chain activities, and the enhanced utility brought by significant dApp expansions. Additionally, Circle's USDC has been integrated into the network, and a trend of funds moving from Ethereum to Sui has been observed.
4. The largest declines
On the other hand, some Tokens have seen declines of up to -96% YTD.
Entangle (NGL) is the worst performer, down -95.3% YTD.
Following closely are Kujira (KUJI) and Trias Lab (TRIAS), which fell by -86.7% and -83.4%, respectively.
NGL was issued with a high valuation in March 2024, after which its price continued to decline. Kujira's performance has been affected by the team's high-risk leveraged liquidity positions, which have backfired during market volatility.
5. How do Layer 1 Tokens issued in 2024 perform?
Various Layer 1 cryptocurrencies launched in 2024 show mixed performances, reflecting the challenges of breaking through in a highly competitive market.
Aleo (ALEO) launched in September and has fallen by -58.1% since its issuance.
Saga (SAGA) launched in April and faced a similar predicament, down -69.9% YTD.
Omni Network (OMNI), also launched in April, has fallen by -68.8%.
Zeta Chain (ZETA) was launched in February and has since fallen by -57.3%.
Performance of Router Protocol (ROUTE) and other new projects
Router Protocol (ROUTE) launched in July, dropping 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 by 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 continuous innovation and user adoption for gaining market recognition.
6. Top ten Layer 1 projects ranked by price performance
Note: YTD is an abbreviation for Year-to-Date, meaning 'from the beginning of the year to now.' It is commonly used to describe the performance of a certain metric (such as returns, gains or losses, or performance) over the period from the beginning of the year (typically January 1) to the current date.
7. Conclusion
In 2024, the Layer 1 blockchain space has shown diverse performances. Mantra leads with a staggering YTD growth of 7035%, thanks to its strategic partnerships and cutting-edge blockchain use cases. Meanwhile, established players like Bitcoin, Solana, and Toncoin have performed steadily, proving their resilience in an ever-changing market. At the same time, newly issued Tokens face significant challenges, often struggling due to starting from 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, which is especially crucial in this rapidly changing crypto market.
Note: This study analyzed the price returns of the top 100 cryptocurrencies by market cap in the Layer 1 category on CoinGecko. The YTD growth statistics cover performance from January 1, 2024, to November 18. This data reflects a snapshot of the market, showcasing the performance differences of various coins in a broader market environment.
