Data from analytics firm CoinGecko shows that Layer-1 native tokens grew by 7,000% in 2024. While major projects like Bitcoin and Ethereum recorded significant gains, other tokens saw notable growth in niche markets.
However, with Layer-2 projects rising in popularity, newly launched L1s faced an extremely competitive and harsh environment.
Layer-1 Tokens Surge in 2024
CoinGecko, a leading blockchain analytics firm, just posted a dramatic update on the 2024 crypto market. Layer-1 blockchain tokens have surged by over 7000% since January 2024, with several unexpected candidates growing fastest. The firm pointed to several trends, but Trump’s election victory further fueled the rally, sparking a broader bull market.
“The cryptocurrency market in 2024 went vertical, encouraged by Trump’s election victory. The demand for L1 solutions has surged… with competition picking up between L1 blockchains to claim the top spot. However, they face stiff competition from Layer-2 solutions, which aim to improve transaction speeds at a fraction of the costs,” CoinGecko claimed.
CoinGecko data showed that the classic examples (Bitcoin, Ethereum, Solana, etc) led in market cap, but some dark horse candidates overtook them in percentage growth. The biggest Layer-1 blockchain projects obviously hold a significant lead in many crucial areas; for example, the CEO of analytics firm CryptoQuant claimed Bitcoin could be a global currency by 2030.
Still, these advantages are not necessarily insurmountable. Although Bitcoin came perilously close to $100,000 last week, it never achieved this milestone. CryptoQuant data claimed that this blunted momentum could significantly delay this price point, thanks to overwhelming market greed. Some assets, however, are benefiting from different advantages.
Mantra (OM) recently reached an all-time high, emerging as a standout performer. CoinGecko attributed OM’s success to a partnership that connected it with the expanding RWA tokenization market. Similarly, AIOZ saw steady growth, supported by its content delivery network. CoinGecko also noted the rapid expansion of Layer-2 networks in this sector.
Despite this, CryptoQuant highlighted the intense competition in the Layer-1 blockchain market. Their analysis showed that most Layer-1 projects launched this year experienced significant losses. While established Layer-1 protocols benefit from their existing presence, the rising Layer-2 market makes it increasingly challenging for new protocols to succeed.
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