Written by: Prem Reginald

Translation: Plain Language Blockchain

Encouraged by Donald Trump's victory in the presidential election, the cryptocurrency market in 2024 has shown a vertical growth trend. As a platform for decentralized applications (dApps) and smart contracts, the demand for Layer 1 solutions has surged, with fierce competition among major Layer 1 blockchains for top positions. However, they face strong challenges from Layer 2 (L2) solutions, which aim to enhance transaction speeds at very low costs, competing with established blockchains like Ethereum.

1. Which Layer 1 tokens performed best?

Among the best-performing tokens, Mantra (OM) achieved unprecedented growth, skyrocketing by 7,035.2%. This surge is partly due to Mantra's partnership with Zand, a digital bank based in the UAE. Zand has enabled the tokenization of real-world assets (RWA) by complying with the regulations set by the Dubai Virtual Assets Regulatory Authority (VARA). Additionally, the demand for RWA products continues to grow, with traditional financial institutions bringing money market funds and bonds onto the blockchain.

2. Other Well-Performing Tokens

AIOZ Network (AIOZ) is another standout performer, growing 427.6% year to date (YTD). The platform's decentralized content distribution network has seen increasing adoption driven by ongoing ecosystem optimization. The top three also include Sui (SUI), which has grown 388.2% YTD, benefiting from rapid development within its ecosystem, including the launch of innovative dApps that leverage its high scalability and developer-friendly features.

Other noteworthy 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. Mild Growth Among Top Ten Layer 1 Tokens by Market Cap

Despite the remarkable performance of small to 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 underperformed compared to similar tokens. With the rise of new Layer 2 and other blockchains, Ethereum's dominance has been declining year by year, despite the 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 FTX bankruptcy in 2022, growing 134.3% year to date. Most of its gains occurred in 2023, when the price surged from $15 to $120, driven by the memecoin frenzy. 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%, primarily due to its ability to host dApps on the popular social messaging app Telegram. The 'Click-to-Earn' game model has become extremely popular on Telegram, further driving its growth.

Sui: The most eye-catching performance

Sui has been the standout performer this year, growing by 338.2%. This increase is mainly due to rising investor interest, growth in on-chain activities, and the enhancement of utility through significant dApp expansions. Additionally, Circle's USDC has been integrated into the network, and there is a trend of funds migrating from Ethereum to Sui.

4. Largest Declines

On the other hand, some tokens have dropped as much as -96% year to date.

Entangle (NGL) performed the worst, with a YTD drop of -95.3%.

Following closely are Kujira (KUJI) and Trias Lab (TRIAS), which have dropped -86.7% and -83.4%, respectively.

NGL launched in March 2024 at a high valuation, after which its price continued to decline. Kujira's performance was impacted by the team's high-risk leveraged liquidity positions, which backfired during market volatility.

5. How are Layer 1 Tokens issued in 2024 performing?

Various Layer 1 cryptocurrencies launched in 2024 have shown diverse performances, reflecting the challenges of breaking through in a competitive market.

Aleo (ALEO) launched in September and has dropped -58.1% since its issuance.

Saga (SAGA) launched in April, facing similar challenges, and has dropped -69.9% so far this year.

Omni Network (OMNI), which launched in April, has dropped -68.8%.

Zeta Chain (ZETA) launched in February and has dropped -57.3% so far.

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 it became 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 ongoing innovation and user adoption for gaining market recognition.

6. Top Ten Layer 1 Projects Ranked by Price Performance

Note: YTD stands for Year-to-Date, which means 'so far this year.' It is usually used to describe the performance of a certain metric (like returns, price changes, or performance) from the beginning of the year (usually January 1) to the current date.

7. Conclusion

In 2024, the Layer 1 blockchain space has shown diverse performances. Mantra leads with an astonishing YTD growth of 7035%, thanks to its strategic partnerships and cutting-edge blockchain use cases. Meanwhile, established players like Bitcoin, Solana, and Toncoin have demonstrated steady performances, proving their resilience in an ever-changing market. At the same time, newly issued tokens face significant challenges, often struggling due to starting at high valuations.

As competition between Layer 1 and Layer 2 solutions intensifies, the focus on scalability, usability, and compliance will determine the emergence of the next wave of winners, which is particularly crucial in this fast-moving cryptocurrency market.

Note: This study analyzes the price performance of the top 100 cryptocurrencies categorized as Layer 1 by market capitalization on CoinGecko. The YTD growth statistics cover performance from January 1, 2024, to November 18. These data reflect a snapshot of the market, illustrating the performance disparities of various coins within a broader market environment.