Author: Prem Reginald
Translator: Baihua Blockchain
Inspired 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 L1 solutions has risen sharply, and major L1 blockchains have engaged in fierce competition to vie for the top position. However, they are facing strong challenges from Layer 2 (L2) solutions, which are committed to increasing transaction speed at extremely low cost, thus competing with mature blockchains such as Ethereum.
1. Which Layer 1 Tokens performed the best?
Among the best-performing Tokens,
Mantra (OM) has achieved unprecedented growth, with a surge of 7,035.2%. This surge is partly due to Mantra's collaboration with the UAE-based digital bank Zand. Zand has tokenized real-world assets (RWA) in compliance with the Dubai Virtual Assets Regulatory Authority (VARA) regulations. In addition, the demand for RWA products has continued to grow, and traditional financial institutions have also introduced money market funds and bonds into the blockchain.
2. Other Outstanding Tokens
AIOZ Network (AIOZ) is another outstanding performer, with a year-to-date (YTD) growth of 427.6%. The platform's decentralized content distribution network has gained increasing adoption driven by continuous ecosystem optimization. Ranking third is
Sui (SUI), with a YTD growth of
388.2%, benefiting from the rapid development of its ecosystem, including the launch of innovative dApps that leverage 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%, through integration with Telegram, successfully hosting dApps and launching "click-to-earn" games.
3. The Top 10 Layer 1 Tokens by Market Cap Have Seen Moderate Gains
Although small and medium-cap Layer 1 Tokens have performed remarkably, larger Tokens such as Bitcoin, Ethereum, and Solana remain solid investment choices.
- Bitcoin (BTC) achieved a 112.9% annual growth.
- Ethereum (ETH) grew by 34.9%, but underperformed its peers. As new Layer 2 and other blockchains have emerged, 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, which rose 24.8% in 2024.
4. The Largest Declines
On the other hand, some Tokens have seen declines of up to -96% year-to-date.
- Entangle (NGL) performed the worst, with a YTD decline of -95.3%.
- Closely followed by Kujira (KUJI) and Trias Lab (TRIAS), with declines of -86.7% and -83.4%, respectively.
5. How Did the Layer 1 Tokens Launched in 2024 Perform?
The performance of various Layer 1 cryptocurrencies launched in 2024 has been mixed, reflecting the challenges of standing out in a highly competitive market.
- Aleo (ALEO), launched in September, has declined -58.1% since its launch.
- Saga (SAGA), launched in April, has faced a similar predicament, declining -69.9% year-to-date.
- Omni Network (OMNI), also launched in April, has declined -68.8%.
- Zeta Chain (ZETA), launched in February, has declined -57.3% so far.
6. Top 10 Layer 1 Projects by Price Performance
Note: YTD stands for
Year-to-Date, which refers to the period 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 performance. Mantra has taken the lead with an astounding 7035% YTD gain, thanks to its strategic partnerships and cutting-edge blockchain use cases. Meanwhile, established players like Bitcoin, Solana, and Toncoin have shown resilience, proving their staying power in the ever-changing market. However, newly launched Tokens have faced significant challenges, often struggling due to high initial valuations.
As the competition between Layer 1 and Layer 2 solutions intensifies, a focus on scalability, utility, and compliance will determine the emergence of the next wave of winners in this rapidly evolving cryptocurrency market.
Note: This research analyzed the price performance of the top 100 cryptocurrencies in the Layer 1 category on CoinGecko. The YTD growth data covers the period from January 1, 2024, to November 18, 2024. These data reflect a snapshot of the market and the performance differences among the various coins in the broader market context.
Link to the article: https://www.hellobtc.com/kp/du/11/5563.html
Source: https://www.coingecko.com/research/publications/layer-1-blockchains-price-returns?utm_campaign=Data%20Visualization&utm_source=x&utm_medium=social
