In the bullish crypto market of 2024, Layer 1 blockchains have shown remarkable performance, with some tokens surging over 7,000% since the beginning of the year. Let's analyze the development trends in the Layer 1 ecosystem.

Market Overview and Growth Drivers

The cryptocurrency market demonstrated impressive upward momentum this year, benefiting from changes in U.S. political landscape and increased institutional investor participation. As the fundamental infrastructure for decentralized applications (dApps) and smart contracts, Layer 1 solutions saw a significant surge in demand.

According to Coingecko's blockchain analysis and cryptocurrency price tracking report, here are the standout Layer 1 cryptocurrencies in 2024 (based on data from January 1 to November 18, 2024).

Outstanding Performers

Top Token:

- Mantra (OM): Achieved a 7,035.2% annual growth, driven by compliance with Dubai's Virtual Assets Regulatory Authority (VARA), successful development of Real World Assets (RWA) tokenization, and strategic partnership with UAE digital bank Zand.

Ecosystem Innovators:

- AIOZ Network: Rose 427.6% annually, leveraging improvements in decentralized content delivery network and significant increase in user adoption.

- Sui (SUI): Grew 388.2% through rapid ecosystem expansion, innovative applications, and enhanced utility through USDC integration.

Other notable L1 tokens include Bellscoin (BELLS) (+252.2%), Zano (ZANO) (+159%), and Toncoin (TON) (+136.2%), with TON successfully leveraging Telegram integration for hosting dApps and play-to-earn games.

Mainstream Blockchain Performance

- Bitcoin (BTC): 112.9% annual growth, supported by continued institutional investment and improved market confidence.

- Ethereum (ETH): 34.9% annual increase, though underperforming compared to other tokens but still outperforming the S&P 500, with ETF launch bringing new momentum.

- Solana (SOL): Strong recovery with 134.3% annual growth, overcoming FTX shadows and benefiting from meme coin trends and increased ecosystem activity.

Emerging Challenges

New Layer 1 projects faced significant challenges in 2024:

- Aleo declined 58.1%

- Saga dropped 69.9%

- Omni Network fell 68.8%

Future Development Keys

Looking ahead, the success of Layer 1 blockchains will depend on their performance across multiple dimensions. Technical innovation capability will remain fundamental in determining platform competitiveness, with continuous technological breakthroughs serving as the cornerstone for maintaining market leadership. The development and implementation of real-world applications will directly impact user adoption rates, as only solutions that address concrete problems can generate sustained growth momentum. Comprehensive ecosystem building is equally crucial, requiring the attraction of more developers to create diverse applications. In an environment of increasing global regulatory scrutiny, achieving and maintaining regulatory compliance will become a critical factor for project survival. Finally, maintaining market competitiveness will require continuous optimization across multiple aspects, including product functionality, user experience, and cost-effectiveness, to stand out in the intensely competitive market landscape.

Conclusion

The Layer 1 ecosystem in 2024 showed diverse development patterns, with traditional large-scale blockchains demonstrating resilience while new projects showcased unique strengths. As Layer 2 solutions emerge, Layer 1 blockchains must continue innovating in scalability, utility, and compliance to maintain their competitive edge in the rapidly evolving cryptocurrency market.

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About BIT

BIT is a comprehensive cryptocurrency exchange offering diverse crypto products, including spot trading, perpetual contracts, square options, options, savings and stakings. BIT was founded in 2020 by Matrixport, a unicorn company valued at over $15 billion.

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