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, leading to intense competition among major L1 blockchains for top positions. However, they face strong challenges from Layer 2 (L2) solutions, which are committed to improving transaction speed at extremely low costs, competing with mature blockchains like Ethereum.
- Which Layer 1 Tokens perform the best?
Among the best-performing Tokens, Mantra (OM) has achieved an unprecedented rise, with a surge in value of 7,035.2%. This surge is partly due to Mantra’s collaboration with the Digital BankZand based in the UAE. By complying with the regulations of the Dubai Virtual Assets Regulatory Authority (VARA), Zand has tokenized Real World Assets (RWA). In addition, there is a continuous rise in demand for RWA products, and traditional Financial Institutions are also introducing money market funds and bonds to the blockchain.
2, other outstanding Token performances
AIOZ Network (AIOZ) is another standout player, rising 427.6% YTD this year. The platform’s Decentralization content distribution network is gaining increasing adoption under continuous ecosystem optimization drive. Also in the top three is Sui (SUI), with a YTD rise of 388.2%, benefiting from rapid development within its ecosystem, including the launch of innovative dApps leveraging its high scalability and developer-friendly features.
Other performers worth following include:
Bellscoin (BELLS): rise252.2%
Zano (ZANO): rise159%
Toncoin (TON): rise136.2%, successfully hosting dApps through integration with Telegram and launching a game where you can earn by clicking.
- The price increase of the top ten Layer 1 Tokens by Market Cap is relatively moderate.
Although small and medium Market Cap Layer 1 Tokens have performed remarkably, larger Market Cap tokens such as Bitcoin, Ethereum, and Solana remain solid investment choices.
BTC (BTC) achieved a 112.9% annual rise.
Ether (ETH) rose 34.9%, but performed worse than similar Tokens. With the rise of new Layer 2 and other blockchains, Ethereum’s dominant position has been declining year by year, despite the launch of Spot Ether ETF in the United States. However, Ethereum still outperformed the S&P 500 index pump by 24.8% in 2024.
Solana (SOL): Rising from the Ashes
Solana (SOL) has risen from the shadow of the FTX bankruptcy in 2022 and has risen by 134.3% so far this year. Most of its gains occurred in 2023, when driven by the memecoin frenzy, the price surged from $15 to $120. This trend has also extended to other blockchains, such as Tron Network (TRX), which has risen by 85.5% this year.
Meanwhile, Toncoin (TON) has recorded an astonishing 136.2% rise, mainly due to its ability to host dApps on the popular social messaging app Telegram. The ‘click and earn’ game mode has become extremely popular on Telegram, further driving its rise.
Sui: the most eye-catching performance
SUI has been the most eye-catching this year, with a rise of 338.2%. This increase is mainly due to increased investor interest, the rise of on-chain activities, and the practicality improvement 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 ETH network to SUI is also observed.
- Maximum decline
On the other hand, some TOKENs have dropped as much as -96% so far 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 was issued at a higher valuation in March 2024, and its price has been declining since then. On the other hand, Kujira’s performance has been affected by the team’s high-risk leveraged liquidity positions, and these strategies have backfired during market fluctuations.
5, how will the Layer 1 Token issuance perform in 2024?
The performance of various Layer 1 cryptocurrencies launched in 2024 varies, reflecting the challenges of breaking through in a fiercely competitive market.
Aleo (ALEO) was launched in September and has since dropped by -58.1% from issuance.
Saga (SAGA) was launched in April and has faced similar predicaments, with a -69.9% decline so far this year.
Similarly, Omni Network (OMNI), launched in April, 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 with a 24.8% price decline, while Ice Open Network (ICE) has seen a relatively smaller drop of 34.5% since January. At the same time, Kaia (KAIA), which entered the market no later than the end of October, achieved a slight rise of 5.2%. These performances reflect the volatility of new Layer 1 projects and the importance of continuous innovation and user adoption for market recognition.
- Top ten Layer 1 projects ranked by price performance
Note: YTD is an abbreviation for Year-to-Date, which means ‘the period from the beginning of the year to the current date.’ It is commonly used to describe the performance of a particular indicator (such as earnings, changes in value, or performance) within the time period from the beginning of the year (usually January 1st) to the current date.
- Conclusion
In 2024, the Layer 1 Block chain sector presents a diverse range of performances. Mantra, with a YTD increase of up to 7035%, is far ahead, thanks to its strategic partnerships and cutting-edge Block chain application cases. Meanwhile, veteran players such as BTC, Solana, and Toncoin have demonstrated their strong vitality in the ever-changing market. At the same time, new issuance Tokens face huge challenges and often struggle due to overvalued starting points.
As the competition between Layer 1 and Layer 2 solutions intensifies, the follow of scalability, practicality, and compliance will determine the emergence of the next wave of winners, which is especially important in this rapidly changing crypto market.
Note: This study analyzed the price performance of the top 100 cryptocurrencies in the Layer 1 category on CoinGecko by market cap. The YTD performance data covers the period from January 1, 2024, to November 18. These data reflect a snapshot of the market, showing the performance differences of various currencies in a broader market environment.
