How will Layer1 public chains perform in 2024?

Author: Prem Reginald Translation: Plain Language Blockchain

Inspired by Donald Trump’s victory in the presidential election, the Cryptocurrency market in 2024 is showing a vertical rise trend. As a platform for decentralized applications (dApps) and smart contracts, the demand for L1 solutions has risen significantly, and major L1 blockchains are fiercely competing for the top position. However, they face strong challenges from Layer 2 (L2) solutions, which are committed to competing with mature blockchains like Ethereum by significantly improving transaction speed at very low cost.

1. Which Layer 1Token performs the best?

Among the top performing Tokens, Mantra (OM) has achieved an unprecedented rise, with a value increase of 7,035.2%. This surge is partly attributed to the partnership between Mantra and Digital Bank Zand based in the United Arab Emirates. Zand has tokenized real-world assets (RWA) by complying with the regulations of the Dubai Virtual Assets Regulatory Authority (VARA). In addition, there is a continued rise in demand for RWA products, and traditional Financial Institutions are also introducing money market funds and bonds into the blockchain.

2. Other Outstanding Tokens

AIOZ Network (AIOZ) is another outstanding performer, rising 427.6% YTD. The platform’s Decentralization content distribution network has gained increasing adoption under continuous ecosystem optimization. Ranking third is Sui (SUI), which has risen 388.2% YTD, benefiting from the rapid development within its ecosystem, including the launch of innovative dApps that utilize its high scalability and developer-friendly features.

Other performers worth follow include:

• Bellscoin (BELLS): rise 252.2%
• Zano (ZANO): rise 159%
• Toncoin (TON): rise by 136.2%, successfully hosts dApps and launches the game ‘Click and Earn’ through integration with Telegram.

3. The top 10 Layer 1Tokens in terms of Market Cap have a relatively moderate increase.

Although Layer 1 Tokens with smaller market caps have performed astonishingly, larger market cap tokens such as BTC, Ethereum, and Solana are still solid investment choices.

BTC (BTC) achieved a 112.9% annual rise.

ETH (ETH) rise 34.9%, but the performance is not as good as similar Tokens. With the rise of new Layer 2 and other blockchains, the dominant position of ETH is declining year by year, despite the introduction of Spot ETH ETF in the United States. However, ETH 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 2022 FTX bankruptcy and has risen by 134.3% so far this year. Most of its gains occurred in 2023, when it surged from $15 to $120, driven by the memecoin frenzy. This trend has also extended to other blockchains, such as Tron Network (TRX), which has risen by 85.5% this year.

At the same time, Toncoin (TON) recorded an astonishing 136.2% rise, mainly due to its ability to host dApps on the popular social messaging app Telegram. The ‘click to earn’ game mode has become extremely popular on Telegram, further driving its rise.

Sui: The Most Eye-catching Performance

SUI has shown the most eye-catching performance this year, with a rise of 338.2%. This increase is mainly due to increased investor interest, on-chain activity rise, and improved practicality brought about by significant dApp expansion. In addition, Circle’s USDC has been integrated into the network, while a trend of funds transferring from the Ethereum network to SUI is also observed.

4. The largest decline

On the other hand, some TOKENs have plummeted by as much as -96% this year.

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

Following closely behind are Kujira (KUJI) and Trias Lab (TRIAS), which fell by -86.7% and -83.4% respectively.

NGL with a higher valuation issuance in March 2024, and the price has been continuously declining since then. Meanwhile, Kujira’s performance has been affected by the team’s high-risk leveraged Liquidity position, which has backfired during market Fluctuation.

5. How will the Layer 1 Token issuance perform in 2024?

Various Layer 1 Cryptocurrencies launched in 2024 perform differently, reflecting the challenges of breaking through in a competitive market.

Aleo (ALEO) was launched in September and has since fallen by -58.1% from issuance.

Saga (SAGA) was launched in April and has faced similar challenges, with a decline of -69.9% year to date.

Also launched in April, Omni Network (OMNI) fell by -68.8%.

Zeta Chain (ZETA) has fallen -57.3% since issuance in February.

The performance of Router Protocol (ROUTE) and other new projects

Router Protocol (ROUTE) launched in July, fell by 24.8%, while Ice Open Network (ICE) has seen a relatively smaller decline since its active start in January, at 34.5%. Meanwhile, Kaia (KAIA), which entered the market at the end of October, achieved a slight 5.2% rise. These performances reflect the volatility of new Layer 1 projects, as well as the importance of continuous innovation and user adoption in gaining market recognition.

6. The top ten Layer 1 projects ranked by price performance

Note: YTD is the abbreviation of Year-to-Date, which means “year-to-date”. It is commonly used to describe the performance of a certain indicator (such as income, change rate, or performance) within the period from the beginning of the year (usually January 1st) to the current date.

7. Conclusion

In 2024, the Layer 1 blockchain sector has shown a diverse performance. Mantra is leading the way with a staggering 7035% year-to-date (YTD) increase, thanks to its strategic partnerships and cutting-edge blockchain application cases. Meanwhile, established players like BTC, Solana, and Toncoin have demonstrated strong resilience in the ever-changing market. At the same time, newly issued tokens face significant challenges, often struggling due to overvaluation at the start.

With the increasingly fierce competition between Layer 1 and Layer 2 solutions, the follow-up of scalability, practicality, and compliance will determine the emergence of the next wave of winners, which is particularly important in this ever-changing crypto market.

*Note: This study analyzes the price performance of the top 100 cryptocurrencies in the Layer 1 category on CoinGecko sorted by Market Cap. The YTD returns cover performance from January 1, 2024, to November 18. These data reflect a snapshot of the market, showing the performance differences of various coins in a broader market environment.