Blockchain analytics and crypto price tracking platform Coingecko has released an insight into the performance of Layer 1 (L1) tokens. According to the analysis, L1 tokens have soared by over 7,000% since January, driven by “renewed enthusiasm” in the crypto market post-US elections.
The report highlights how 2024 saw meteoric rises, sharp declines, and mixed performances for newly launched coins. Crypto investors have witnessed the surge of several tokens, with digital assets like Peanut the Squirrel (PNUT) experiencing price rises of over 5000%.
Financial analysts believe the cryptocurrency’s recent market bull run was spurred by Donald Trump’s presidential election victory, who vowed to embrace and bolster the use of crypto when he takes office.
Coingecko’s market analysis shows L1 tokens also followed the price rise trend, highlighting how the demand for L1 blockchains surged as platforms for decentralized applications (dApps) and smart contracts grew in popularity among developers.
According to Coingecko’s research, Mantra (OM) led the L1 token price surge with a staggering 7,035.2% year-to-date (YTD) surge. OM’s success is largely attributed to its partnership with UAE-based Zand Digital Bank, aimed at enabling tokenized real-world assets (RWAs) under Dubai’s Virtual Asset Regulatory Authority (VARA) framework.
At the time of writing, Mantra is trading at $3.8, which represents a 4% increase in the last 24 hours, and a 15,830% rise from its YTD value.
AIOZ Network (AIOZ) wasn’t far behind, posting a 427.6% YTD gain thanks to the growing adoption of its decentralized content delivery network. Sui (SUI) secured its spot in the top three with a 388.2% increase. Bellscoin (BELLS), Zano (ZANO), and Toncoin (TON) were also listed in the report among the top performers, respectively.
On the flip side, Coingecko revealed that several Layer 1 coins faced crushing losses. Entangle (NGL) plummeted by 95.3%, a steep drop attributed to its overvalued launch in March. Kujira (KUJI) and Trias Lab (TRIAS) followed with declines of 86.7% and 83.4%, respectively.
Similar to what the non-fungible token market experienced in 2024, newly launched L1 tokens saw a downward price trend. Coins like Aleo (ALEO) plummeted from their YTD prices by 58.1%, while Saga (SAGA) went down by 69.9%.
However, Kaia (KAIA) was a rare bright spot, recording a modest 5.2% gain since its October debut.
Analysts from CryptoQuant emphasized the fierce rivalry within the Layer-1 blockchain sector, noting that many newly launched Layer-1 projects in 2024 faced substantial setbacks. Established Layer-1 protocols continue to leverage their entrenched market positions, but the rapid growth of Layer-2 solutions is raising the bar, making it harder for emerging protocols to carve out a foothold.
While mid- and small-cap Layer 1s gave the biggest talking points of the year, larger market-cap coins still delivered respectable returns. Bitcoin (BTC) gained 128.8% YTD, outpacing traditional market indices like the S&P 500, which rose 24.8%.
Ethereum (ETH), despite its modest 64.6% increase, continued to face challenges from Layer 2s and newer blockchains. According to Coingecko data, ETH is currently changing hands at $3,700, representing a price increase of just over 3% in 24 hours and over 50% in the last month.
Solana (SOL) bounced back strongly from its FTX-related slump, posting a 278.3% YTD rise, while Binance Coin (BNB) gained 235% within the same period.
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