Author: Prem Reginald, CoinGecko; Compiler: Deng Tong, Golden Finance

After emerging from the predicament, 2024 will be an exciting year for the layer 1 (L1) blockchain. Since January, the token price has surged more than 7,000%. In the fast-growing cryptocurrency space, some unexpected coins are reclaiming their spot as the year’s top performers. Let’s take a closer look at the biggest L1 winners and losers of 2024.

Market Overview

In 2024, driven by Donald Trump’s presidential election victory, the cryptocurrency market will experience verticalization. Competition among L1 blockchains is intensifying for the top spot as demand for L1 solutions surges as they provide a platform for dApps and smart contracts. However, they face stiff competition from layer 2 solutions that aim to increase transaction speeds for a fraction of the cost of established blockchains such as Ethereum.

What are the best-performing Layer 1 tokens?

Among the top-performing coins, Mantra (OM) experienced unprecedented growth, surging 7,035.2% in value. This growth is partly due to Mantra’s partnership with Zand, a UAE-based digital bank that allows the tokenization of real-world assets (RWA) in compliance with Dubai’s Virtual Asset Regulatory Authority (VARA) . Additionally, demand for RWA products has increased as traditional financial institutions bring their money funds and bonds to blockchain.

Other than that, AIOZ Network (AIOZ) is another standout performer, with year-to-date (YTD) growth of 427.6%. The platform’s decentralized content delivery network continues to see increased adoption, driven by a growing ecosystem. Sui (SUI) rounds out the top three with year-to-date growth of 388.2%. The token benefits from growing traction within its ecosystem, including the launch of innovative dApps that take advantage of its scalability and developer-friendly features.

Other standout performers include Bellscoin (BELLS) (+252.2%), Zano (ZANO) (+159%) and Toncoin (TON, +136.2%), the latter of which successfully leveraged its partnership with Telegram Integrated to host dApps and click-to-earn games.

The top 10 Layer 1 tokens by market capitalization all showed moderate growth

Despite the explosive growth of small and medium-sized Layer 1 tokens, larger market capitalization tokens such as Bitcoin, Ethereum and Solana are still Proven to be a solid investment. Bitcoin (BTC) shows positiveGrowth, up 112.9% year-to-date, while Ethereum (ETH) has grown 34.9%, lagging other tokens. Ethereum’s dominance in the space has gradually waned over the years as new Layer 2 and other blockchains emerged. This is despite the launch of a spot Ethereum exchange-traded fund (ETF) in the United States. However, it still managed to outperform the S&P 500, which is up 24.8% in 2024.

Solana (SOL) has risen from the ashes of the 2022 FTX bankruptcy and is up a massive 134.3% year to date. Most of its gains occurred in 2023, when its price surged from $15 to $120, driven by memecoin mania. The trend has also turned to blockchains like Tron Network (TRX), which is up 85.5% year-to-date. Toncoin (TON), on the other hand, achieved a staggering 136.2% growth by hosting a dApp on the popular social messaging app Telegram. Tap-to-earn games have become very popular on Telegram.

The most significant gains were seen in Sui, which is up 338.2% year-to-date. The rise was driven by increased investor interest, increased on-chain activity, and expanded utility from significant dApp growth. Additionally, Circle’s USDC was integrated into the network and capital was observed moving from Ethereum to Sui.

Items with the biggest declines

On the other hand, there are several coins that have dropped as much as -96% so far this year. Tokens such as Entangle (NGL) have fallen the most, down -95.3% year to date, followed by Kujira (Kuji) and Trias Lab (TRIAS), down -86.7% and -83.4% respectively. NGL was launched in March 2024 at a fairly high valuation and its price has been on a downward trend since then. Kujira's performance, on the other hand, was impacted by the team's risky leveraged liquidity positions, which backfired during periods of market volatility.

How will Layer 1 tokens launched in 2024 perform?

The mixed performance of several Layer 1 cryptocurrencies launching in 2024 reflects the challenges of breaking into a competitive market. Aleo (ALEO), which launched in September, has fallen -58.1% since its debut, while Saga (SAGA), which launched in April, has faced similar struggles, down -69.9% year-to-date. Omni Network (OMNI), also starting in April, is down -68.8%, while Zeta Chain (ZETA), which launched in February, fell -57.3%.

Router Protocol (ROUTE), launched in July, fell by -24.8%, and Ice Open Network (ICE), which has been active since January, fell by -34.5%, a smaller decline . Meanwhile, Kaia (KAIA), the newest addition to the list at the end of October, has grown slightly, up 5.2%. These performances highlight the volatility of new L1 projects and the need for continued innovation and adoption to gain traction.

Top 10 Layer 1s by Price Performance

Conclusion

In 2024, the L1 blockchain space will have mixed performance. Mantra leads the way with a staggering 7,035% year-to-date gain, driven by strategic partnerships and cutting-edge blockchain use cases. Established players such as Bitcoin, Solana, and Toncoin have performed well, proving their staying power in an evolving market. Meanwhile, newly launched coins face a tough uphill climb as they carry high valuations.

As competition between Layer 1 and Layer 2 solutions intensifies, a focus on scalability, utility, and regulatory compliance will determine the next wave of winners in the ever-changing crypto space .