Inspired by Trump's victory in the presidential election, the cryptocurrency market in 2024 shows a vertical growth trend. As a platform for decentralized applications (dApps) and smart contracts, demand for L1 solutions has surged significantly, with various L1 blockchains competing fiercely for top positions. However, they face strong challenges from Layer 2 (L2) solutions, which aim to enhance transaction speeds at very low costs, thereby competing with mature blockchains like Ethereum.
Image source: CoinGecko
1. Which Layer 1 tokens performed the best?
Among the top-performing tokens, Mantra ($OM) has achieved unprecedented growth, surging by 7,035.2%. This spike is partly due to Mantra's partnership with Zand, a digital bank based in the UAE. Zand has tokenized real-world assets (RWA) by complying with the regulations of the Dubai Virtual Assets Regulatory Authority (VARA). Additionally, the demand for RWA products continues to grow, and traditional financial institutions are increasingly introducing money market funds and bonds onto the blockchain.
Image source: CoinGecko
2. Other well-performing tokens.
AIOZ Network ($AIOZ) is another standout player, growing 427.6% YTD. The platform's decentralized content distribution network has gained increasing adoption driven by ongoing ecosystem optimization. The top three also include Sui ($SUI), which grew 388.2% YTD, benefiting from rapid development within its ecosystem, including the launch of innovative dApps leveraging its high scalability and developer-friendly features.
Other performers worth noting include:
Bellscoin (BELLS): Growth of 252.2%.
Zano (ZANO): Growth of 159%.
Toncoin ($TON): Growth of 136.2%, successfully hosting dApps through integration with Telegram and launching 'click-to-earn' games.
3. The top ten Layer 1 tokens by market cap saw moderate gains.
Although small and medium-cap Layer 1 tokens have performed remarkably, larger market cap tokens such as Bitcoin, Ethereum, and Solana still remain solid investment choices.
Bitcoin achieved an annual growth of 112.9%.
Ethereum (Ether) 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, despite the U.S. launching a spot Ethereum ETF. However, Ethereum still outperformed the S&P 500 index, which rose by 24.8% in 2024.
Image source: CoinGecko
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, driven by a meme coin frenzy, with prices soaring from $15 to $120. This trend has also expanded to other blockchains, such as Tron Network ($TRX), which has grown by 85.5% this year.
Meanwhile, Toncoin ($TON) recorded an astonishing growth of 136.2%, mainly due to its ability to host dApps on the popular social 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.
$SUI has performed the brightest this year, growing 388.2%. This rise is mainly attributed to increased investor interest, growth in on-chain activity, and enhanced usability through significant dApp expansions. Additionally, Circle's USDC has been integrated into the network, while a trend of funds moving from Ethereum to Sui has been observed.
4. The largest declines.
Image source: CoinGecko
On the other hand, some tokens have dropped as much as -96% this year.
Entangle ($NGL) performed the worst, down -95.3% YTD.
Following closely are Kujira ($KUJI) and Trias Lab ($TRIAS), down -86.7% and -83.4%, respectively.
$NGL was issued at a higher valuation in March 2024 and has seen a continued decline in price since then. The performance of Kujira has been impacted by the team's high-risk leveraged liquidity positions, which have backfired during market volatility.
5. How did the Layer 1 tokens launched in 2024 perform?
Various Layer 1 cryptocurrencies launched in 2024 have shown mixed performances, reflecting the challenges of breaking through in a highly competitive market.
Aleo ($ALEO) launched in September and has dropped -58.1% since its issuance.
Saga ($SAGA) launched in April and faces similar challenges, down -69.9% year to date.
Omni Network ($OMNI), also launched in April, is down -68.8%.
Zeta Chain ($ZETA) was issued in February and has dropped -57.3% so far.
Image source: CoinGeckoRouter Protocol ($ROUTE) and the performance of 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 small decline of 34.5% since becoming active in January. Meanwhile, Kaia ($KAIA), which entered the market at 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. The top ten Layer 1 projects ranked by price performance.
Image source: CoinGecko
Note: YTD is an abbreviation for Year-to-Date, meaning 'so far this year.' It is typically used to describe the performance of a specific metric (such as returns, price changes, or performance) over the period from the beginning of the year (usually January 1) to the current date.
7. Conclusion
In 2024, the Layer 1 blockchain industry is showing diverse performances. Mantra leads with an impressive YTD growth of 7,035%, thanks to its strategic partnerships and cutting-edge blockchain use cases. Meanwhile, established players like Bitcoin, Solana, and Toncoin are demonstrating stable performances, proving their strong viability in a constantly changing market. At the same time, newly launched tokens face significant challenges, often struggling due to high starting 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, especially critical in this rapidly changing crypto market.
Note: This study analyzed the price performance of the top 100 cryptocurrencies sorted by market cap under the Layer 1 category in CoinGecko. The YTD growth statistics cover the period from January 1, 2024, to November 18. These data reflect a snapshot of the market, illustrating the performance differences of various coins in a broader market environment.
[Disclaimer] The market carries risks, and investment should be approached with caution. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.
This article is authorized for reprint from: (PANews)
Original author: Prem Reginald
'Which public chain project is the strongest in 2024? This coin has risen 7000% this year, overtaking Solana and Sui!' This article was first published in 'Crypto City'.
