Layer-1 Tokens Surge in 2024

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

Data from leading blockchain analytics firm CoinGecko has revealed a staggering 7,000% growth in Layer-1 native tokens throughout 2024. While major projects like Bitcoin and Ethereum recorded significant gains, other tokens experienced remarkable growth in niche markets.

However, as Layer-2 projects gain increasing popularity, newly launched L1s encountered an extremely competitive and harsh environment.

CoinGecko's report highlights the surging demand for L1 solutions, with several trends emerging throughout the year. Notably, Donald Trump's election victory played a role in sparking a broader bull market.

“The cryptocurrency market in 2024 was characterized by dramatic ups and downs, largely influenced by the upcoming U.S. presidential election and the Federal Reserve's interest rate hikes. The demand for L1 solutions has surged throughout the year, with several trends emerging. Notably, Donald Trump's election victory further fueled the rally, sparking a broader bull market.”

CoinGecko's data showcases the leading Layer-1 blockchain tokens by market capitalization, with the classic examples (Bitcoin, Ethereum, Solana, etc.) emerging at the forefront. Interestingly, some dark horse candidates managed to outpace these giants in terms of percentage growth.

While the biggest Layer-1 blockchain projects naturally 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), these advantages are not necessarily insurmountable.

Bitcoin came close to $100,000 last week, but it never achieved this milestone. CryptoQuant's data suggests that this blunted momentum could significantly delay the coin's arrival at this price point, thanks to overwhelming market greed.

However, some assets are benefiting from different advantages. Mantra (OM), for instance, 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's analysis showed 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.”