Layer 1 blockchain is the powerhouse of the cryptocurrency world, providing the backbone for all the fantastic and innovative things happening in the digital currency realm. Think of it as the foundation on which all your engaging digital assets and smart apps are built.
These chains are unique and each boasts its own set of rules (consensus mechanisms), ways to handle large numbers of transactions (scalability), and ways to keep things safe and sound (security).
Why are these layer 1 chains important?
This is a playground for smart contracts. In other words, it is a self-executing contract that does the heavy lifting based on the code written in it. This leads to the creation of decentralized applications (dApps) that run on trustless mechanisms.
This is huge because it means anyone, anywhere can use these apps for all kinds of tasks, from buying coffee with cryptocurrency to protecting essential data without intermediaries.
Let us introduce you to some of the superstars of the Layer-1 league. Ethereum, the OG of smart contract wizards; Binance Coin boasts lightning-fast transaction speeds; Cardano, known for its sustainability; Solana, an ultra-fast blockchain that recently received rave reviews from ARK Invest’s Cathie Wood; And then there is Polkadot, a connector that connects various blockchains on a seamless web.
Why are cryptocurrency investors interested in Layer-1?
Because Layer-1 coins are more than just technological marvels. This is your golden ticket to the future of decentralized finance. It is the driving force that leads a new world where technology, investment, and daily life intersect.
For anyone looking to be a part of the next big thing in the cryptocurrency world, keeping an eye on these layer 1 blockchains is like keeping an eye on the all-stars of the digital economy.
Growth over the past 5 years
The historical performance of layer 1 blockchain coins has been a roller coaster of highs and lows, but reflects an overall upward trend.
The graph we are looking at provides a snapshot of this dynamic journey, highlighting the growth trajectory of the top layer 1 coins over the years leading up to 2024.
Bitcoin (BTC), commonly regarded as the origin of cryptocurrency, showed a significant increase of 861.21%. Its performance sets a benchmark for the market, reflecting investor sentiment and broader market trends.
Ethereum (ETH), which recorded a massive rise of 1753.31%, shows the explosive potential of the layer 1 platform supporting smart contracts and dApps. The transition to Ethereum 2.0 could fuel significant growth as investors expect improved scalability and efficiency.
Cardano (ADA) recorded a 955.69% increase, driven by a systematic development approach and gradual rollout of features such as smart contracts and dApp support.
Solana (SOL), despite suffering a 76% decline compared to ATH, still made a noticeable impact with ultra-fast, low-cost trading. Solana, which has achieved 65% growth since launch, is appealing to developers and users in the DeFi and NFT space.
Lastly, Binance Coin (BNB) grew by 4507.28%, benefiting from Binance’s robust ecosystem including exchange, DEX, and smart chain features. This growth highlights the benefits of a token that is comprehensive and integrated with a widely used platform.
These historic achievements are not just numbers. It tells the story of technological advancements, community support, investor trust, and the ever-evolving cryptocurrency industry landscape.
Why are Small Cap Layer-1 coins important?
Now that we know that layer 1 coins are the main event, let’s take a look at which layer 1 coins are worth investing in. Of course, Ethereum (ETH) and Binance Coin (BNB) are like old pros. It’s full of features. But don’t overlook the smaller players in the game. They could become the next big players, offering new opportunities for those willing to look closely at the details.
Top Layer 1 Coins to Invest in 2024
Ethereum
Ethereum (ETH) has been at the forefront of blockchain development. Major milestones such as The Merge in September 2022, which shifted from Proof-of-Work to Proof-of-Stake, have made giant leaps toward sustainability and scalability. The Shanghai Upgrade in April 2023 strengthened the staking ecosystem by further enhancing it with staking withdrawals at the execution layer.
Prior to this, the August 2021 London Upgrade overhauled the transaction fee market with EIP-1559, a significant economic tier adjustment. Each step reflects Ethereum’s commitment to continued growth underpinning its leading position in the Layer-1 space.
Binance (BNB)
Binance Coin is the core of Binance Chain and Binance Smart Chain, facilitating fast transactions and low fees. The ecosystem includes a variety of services ranging from trading to decentralized finance.
Despite the recent scandal of criminal charges following regulatory bending, the price of BNB has plummeted. The price of Binance token is nearing the low support level of $200, predicting a possible double bottom reversal on the monthly chart.
The $200 support level has led to multiple bounces and portends another bullish return to $300. In the long run, the new altcoin season could push BNB coin price past the psychological barrier of $1000 to all-time highs.
Cardano (ADA)
Cardano stands out for its research-driven approach and proof-of-stake mechanism. We aim to provide a balanced ecosystem with a focus on sustainability and interoperability.
ADA price has rebounded by tracking to $0.239, signaling a trend reversal. Despite the 87.52% discount, Cardano has the potential to surpass its measured all-time high in 2021. Therefore, investing in ADA at a discount can lead to huge returns in the next bull market.
Solana (SUN)
Known for its impressive speeds and low transaction costs, Solana’s blockchain hosts an ecosystem geared toward DeFi and NFTs, with a focus on high throughput and efficient consensus mechanisms.
A trend reversal in SOL price forming a rounding bottom pattern on the monthly chart is poised to restart the rise to the peak. A notable high-speed reversal over the past few weeks has increased interest from institutional investors.
Depending on Fibonacci levels, SOL price could reach $350 next year, setting a new all-time high.
Polkadot (DOT)
Polkadot introduces a sharded multi-chain network that can process multiple transactions across multiple chains in parallel. It is designed to facilitate the Web 3.0 ecosystem, allowing various blockchains to interoperate.
Being the underdog in the layer-1 blockchain group, the Polkadot ecosystem has the potential to grow significantly in its next run. The DOT price, currently at a low of $5.28 at press time, could make history, forming a new all-time high after the halving in 2024, much like Bitcoin.
A turnaround around the $5 level would begin a bull market that could reclaim lost levels and potentially push the price above the $50 level.
Avalanche (AVAX)
Avalanche prides itself on quick transaction finality. The ecosystem is designed for decentralized applications and custom blockchain networks with a focus on speed and low fees.
AVAX price, which has strengthened sharply this month with an 87% return, is making moves to resume its upward trend. Due to the growth of the Avalanche network and the overall market recovery, AVAX price is expected to regain its upward trend and achieve triple-digit decline levels.
Algorand (ALGO)
Algorand’s blockchain is designed to achieve speed, security, and decentralization through a pure proof-of-stake protocol. Supports a wide range of applications, including financial tools and services.
Algorand, the brainchild of MIT professor Silvio Micali, remains a dark horse in the cryptocurrency industry. With the support of someone at MIT and a strong, pure proof-of-stake consensus mechanism, the price of ALGO could skyrocket again.
Additionally, the monthly chart shows a bullish trend reversal over the past few months. ALGO prices are poised to go higher. The MACD indicator shows a bullish crossover, signaling a new uptrend. Therefore, the ALGO price trend shows the possibility of reaching double-digit market prices in the future.
Tezos (XTZ)
Tezos focuses on key features such as on-chain governance and self-correction to avoid hard forks. The ecosystem is growing in DeFi, NFTs, and tokenized assets.
XTZ price is changing on the monthly chart due to a bullish crossover in the MACD indicator. The Tezos token shows another bullish attempt to reverse the long-term trend with a double bottom reversal. Moreover, there appears to be a repeat of double bottoms in altcoins, which supports a turnaround.
Cosmos (ATOM)
Cosmos is often called the “Internet of Blockchains” as it aims to create an interoperable blockchain network. Supports a robust ecosystem for a variety of decentralized applications and services.
A second retest of the $6.69 support level could trigger a Morningstar pattern and a surge to $15. Moreover, ATOM coin price maintains the double bottom streak seen in other layer 1 coins, reflecting a sectoral bullish reversal approaching.
Depending on Fibonacci levels, a trend reversal in ATOM Coin could reach a market price of $50.
NEAR Protocol (NEAR)
The NEAR protocol emphasizes user and developer friendliness through a sharded proof-of-stake blockchain. We are building an accessible and scalable ecosystem while supporting applications such as DeFi, NFTs, and more.
Maintaining its downtrend, a near-term reversal in NEAR price is preparing to trigger a new bullish phase along with the MACD crossover. NEAR price providing a breakout of $15 after a reversal would signal a new uptrend with the potential to surpass the all-time high of $46.
conclusion
In conclusion, the Layer 1 blockchain space is a vibrant and constantly evolving environment rich in opportunity. From Ethereum’s groundbreaking transformation to Ethereum 2.0’s proof-of-stake consensus to Binance Coin’s resilience amid regulatory challenges, these platforms highlight the innovative spirit of the cryptocurrency world.
Cardano’s commitment to sustainability and Solana’s high-speed capabilities demonstrate the versatility of the solutions these chains offer. Traveling through the decentralized realm of Polkadot, Avalanche, Algorand, Tezos, Cosmos, and NEAR protocols, each ecosystem presents unique possibilities and growth potential.
For cryptocurrency investors and enthusiasts, these layer 1 blockchains are more than just investment vehicles. They are the architects of a new digital economy that beckons a future where finance is democratized and innovation is endless. Keep an eye on these big guys and underdogs. Because they hold the keys to the cryptocurrency kingdom.