Author: Prem Reginald, CoinGecko; Compiler: Deng Tong, Jinse Finance
After overcoming challenges, 2024 is an exciting year for Layer 1 (L1) blockchains, with token prices soaring over 7,000% since January. In the fast-evolving cryptocurrency space, some unexpected tokens are reclaiming the top spots for this year's performance. Let's take a closer look at the biggest L1 winners and losers of 2024.
Market Overview
In 2024, driven by President Donald Trump's election victory, the cryptocurrency market shows a vertical trend. Demand for L1 solutions has surged as they provide platforms for dApps and smart contracts, intensifying competition among L1 blockchains to claim the top spot. However, they face fierce competition from layer 2 solutions, which aim to increase 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 7,035.2%. This increase is partly attributed to Mantra's collaboration with Zand, a UAE-based digital bank that allows for the tokenization of real-world assets (RWA) in compliance with the Dubai Virtual Assets Regulatory Authority (VARA). Additionally, as traditional financial institutions bring their money market funds and bonds onto the blockchain, the demand for RWA products has also increased.
In addition, 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 among the top three with a YTD growth of 388.2%. The token benefits from the increasing appeal 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%), the latter successfully utilizing integration with Telegram to host dApps and play-to-earn games.
The top 10 Layer 1 tokens by market cap have shown modest growth.
Despite explosive growth among small and medium Layer 1 tokens, larger market cap tokens like Bitcoin, Ethereum, and Solana have proven to be reliable investments. Bitcoin (BTC) has shown positive growth, increasing 112.9% year-to-date, while Ethereum (ETH) has grown 34.9%, lagging behind other tokens. With the emergence of new Layer 2 and other blockchains, Ethereum's dominance in this space has gradually weakened over the years, despite the US launching a spot Ethereum exchange-traded fund (ETF). However, it has still managed to outperform the S&P 500, which has risen 24.8% in 2024.
Solana (SOL) has emerged from the ruins of the 2022 FTX bankruptcy, rising significantly by 134.3% year-to-date. Most of its gains occurred in 2023, driven by a memecoin frenzy, with its price soaring from $15 to $120. This trend has also shifted to blockchains like Tron Network (TRX), which has grown 85.5% year-to-date. On the other hand, Toncoin (TON) achieved an impressive 136.2% growth by hosting dApps on the popular messaging application Telegram. Tap-to-earn games have become very popular on Telegram.
The most significant increase is seen in Sui, which has grown 338.2% year-to-date. This rise is driven by increasing investor interest, heightened on-chain activity, and the expansion of utility due to significant growth in dApps. Additionally, Circle's USDC has been integrated into the network, and capital has been observed moving from Ethereum to Sui.
Biggest drop projects
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, down -95.3% year-to-date, followed by Kujira (Kuji) and Trias Lab (TRIAS), which fell -86.7% and -83.4%, respectively. NGL launched in March 2024 at a relatively high valuation and has seen its price decline since. Meanwhile, Kujira's performance has been affected by the team's high-risk leveraged liquidity positions, which backfired during market volatility.
How have Layer 1 tokens launched in 2024 performed?
The performance of several Layer 1 cryptocurrencies launched in 2024 has been mixed, 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, faces a similar plight with a YTD decline of -69.9%. Similarly, Omni Network (OMNI) has decreased -68.8% since its April launch, and Zeta Chain (ZETA), launched in February, has dropped -57.3%.
Router Protocol (ROUTE), launched in July, has dropped -24.8%, while the actively traded Ice Open Network (ICE) has decreased -34.5% since January, a smaller decline. Meanwhile, the recently launched Kaia (KAIA) in late October has seen 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 varied. Mantra leads with an astonishing 7,035% year-to-date increase, thanks to strategic partnerships and cutting-edge blockchain use cases. Established players like Bitcoin, Solana, and Toncoin have performed well, proving their resilience in a rapidly evolving market. Meanwhile, newly launched tokens face a challenging 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 evolving crypto landscape.
