Layer-1 blockchains are like the powerhouses of the crypto world, providing the backbone for all the fantastic and innovative stuff happening in the digital currency realm. Think of them as the foundation upon which all those eye-catching digital assets and smart apps are built.
These chains are unique, each boasting its own set of rules (consensus mechanisms), ways to handle loads of transactions (scalability), and keeping things safe and sound (security).
Why Are These Layer-1 Chains a Big Deal?
They’re the playground for smart contracts – self-executing contracts that do the heavy lifting, following the code they’re written in. This leads to the birth of decentralized applications (dApps) that run on a trustless mechanism.
It is huge because this means that anyone, anywhere, can use these apps for all sorts of things, from buying a coffee with crypto to securing essential data without any middleman.
Let’s name-drop some of the superstars in the Layer-1 league: Ethereum, the OG of smart contract wizards; Binance Coin, the speedster with its lightning-fast transactions; Cardano, the one known for its sustainability; Solana, super quick blockchain that recently got a pat on the back from Cathie Wood from ARK Invest; and Polkadot, the connector, linking different blockchains in a seamless web.
Why Do Crypto Investors Care About Layer-1?
Because Layer-1 coins aren’t just tech marvels; they’re golden tickets to the future of decentralized finance. They’re the engines driving a new world where technology, investment, and everyday life intersect.
For anyone looking to be part of the next big thing in the crypto universe, keeping an eye on these Layer-1 blockchains is like watching the all-stars of the digital economy in action.
Last 5 Years of Growth
The historic performance of Layer-1 blockchain coins has been a roller coaster of highs and lows but reflects an overall bull run.
The graph we’re looking at provides a snapshot of this dynamic journey, highlighting the growth trajectories of some of the top Layer-1 coins over the years leading up to 2024.
Bitcoin (BTC), often considered the original cryptocurrency, has shown a significant increase of 861.21%. Its performance sets a benchmark for the market, reflecting investor sentiment and broader market trends.
Ethereum (ETH), with a massive 1753.31% rise, showcases the explosive potential of Layer-1 platforms that support smart contracts and dApps. Its transition to Ethereum 2.0 could drive its substantial growth as investors anticipate improved scalability and efficiency.
Cardano (ADA) has seen a 955.69% increase, attributed to its methodical development approach and the gradual rollout of its capabilities, such as smart contracts and dApp support.
Solana (SOL), although facing a decline of 76% from its ATH, has still made a notable impact with its ultra-fast and low-cost transactions. Bringing a 65% growth since its inception, Solana appeals to developers and users within the DeFi and NFT spaces.
Lastly, Binance Coin (BNB) has grown 4507.28%, benefiting from the robust ecosystem of Binance, including its exchange, DEX, and smart chain functionalities. This growth underscores the advantage of integrated tokens with comprehensive and widely-used platforms.
These historic performances are not just numbers; they narrate the story of technological advancements, community support, investor confidence, and the ever-evolving landscape of the crypto industry.
Why Small Cap Layer-1 Coins Are Important?
Now that we have established that Layer-1 coins are the main event, let us explore which Layer-1 coins are worth investing in. Sure, Ethereum (ETH) and Binance Coin (BNB) are like the seasoned pros—established, reliable, and packed with features. But don’t overlook the smaller cap players in the game, as they can be the next big thing, offering fresh opportunities for those willing to dive into the details.
Top Layer-1 Coins To Invest For 2024
Ethereum (ETH) has been at the forefront of blockchain evolution. With key milestones like The Merge in September 2022, which transitioned from proof-of-work to proof-of-stake, a giant leap towards sustainability and scalability. The Shanghai upgrade in April 2023 furthered this with staking withdrawals on the execution layer, enhancing the staking ecosystem.
Preceding these, the London upgrade in August 2021 reformed the transaction fee market with EIP-1559, a critical economic layer adjustment. Each step reflects Ethereum’s commitment to continual growth, underpinning its leading position in the Layer-1 space.
Binance Coin is central to the Binance Chain and Binance Smart Chain, facilitating fast transactions and low fees. Its ecosystem includes a range of services, from trading to decentralized finance.
Despite the recent scandal of criminal charges based on bending regulations, the BNB price takes a nose dive. Falling close to the bottom support of $200, the price of the Binance token projects a double-bottom reversal likelihood in the monthly chart.
The support level of $200 has led to multiple bounce-backs and teases another bullish comeback to $300. In the long term, the new altcoin season can drive the BNB coin price to an all-time high above the psychological barrier of $1000.
Cardano stands out for its research-driven approach and proof-of-stake mechanism. It aims to provide a balanced ecosystem with a strong focus on sustainability and interoperability.
Tracing down to $0.239, the ADA price bounces back and teases a trend reversal. Despite being at a discount of 87.52%, Cardano has the potential to surpass the all-time high measured in 2021. Therefore, investing in ADA at a discounted price can yield massive returns in the next bull run.
Known for its impressive speeds and low transaction costs, Solana’s blockchain hosts an ecosystem geared towards DeFi and NFTs, focusing on high throughput and efficient consensus mechanisms.
Forming a rounding bottom pattern in the monthly chart, the trend reversal in the SOL price is ready to restart a climb to its pinnacle. The remarkable high-speed reversal in the last few weeks has increased the interests of institutional investors.
As per the Fibonacci levels, the SOL price can reach the $350 mark to form a new all-time high next year.
Polkadot introduces a sharded multichain network that can process multiple transactions on several chains in parallel. It’s designed to facilitate a Web 3.0 ecosystem, allowing different blockchains to interoperate.
Being an underdog in the group of Layer-1 blockchains, the Polkadot ecosystem has the potential to make it big in the next run. At a low of $5.28 at press time, the DOT price can create history just like Bitcoin to form a new all-time high post-2024 halving.
A turnaround from the $5 mark will initiate a bull run to reclaim the lost levels and potentially surpass the $50 mark.
Avalanche prides itself on its rapid transaction finality. Its ecosystem is designed for decentralized applications and custom blockchain networks, focusing on speed and low fees.
Taking a sharp bullish turnaround with an 87% return this month, the AVAX price is on a roll to restart the uptrend. Avalanche network’s growth and the overall market recovery, the AVAX price is set to regain the uptrend and achieve the lost levels of triple digits.
Algorand’s blockchain is designed to achieve speed, security, and decentralization, all with a pure proof-of-stake protocol. It supports a wide range of applications, including financial tools and services.
Algorand, MIT professor Silvio Micali’s brainchild, remains the crypto industry’s dark horse. With the backing of someone at MIT and a powerful and pure proof of stake consensus mechanism, the ALGO price can skyrocket again.
Further, the Monthly chart shows a bullish trend reversal in the last few months; the ALGO price is ready to head higher. The MACD indicator shows a bullish crossover and teases a new uptrend. Therefore, the ALGO price trend shows the potential to reach double-digit market prices in the coming times.
Tezos focuses on key features like on-chain governance and self-amendment to avoid hard forks. Its ecosystem is growing in DeFi, NFTs, and tokenized assets.
With a bullish crossover in the MACD indicator, the XTZ price is turning in the monthly charts. The Tezos token shows another bullish attempt to reverse the long-term trend with a double-bottom reversal. Moreover, the double bottom seems repetitive in the altcoins, which supports a turnaround.
Cosmos is often called the “Internet of Blockchains,” aiming to create a network of interoperable blockchains. It supports a robust ecosystem for a variety of decentralized applications and services.
With a second retest of the $6.69 support levels, the turnaround with a morning star pattern teases a jump to $15. Moreover, the ATOM coin price sustains the double bottom streak visible in the other layer-1 coins, reflecting a sectoral bullish reversal coming closer.
As per the Fibonacci levels, the trend reversal in the ATOM coin can reach the market price of $50.
NEAR Protocol (NEAR)
NEAR Protocol emphasizes user and developer friendliness with a sharded, proof-of-stake blockchain. It’s building an ecosystem that’s accessible and scalable, supporting applications like DeFi, NFTs, and more.
Keeping a declining trend, the short-term reversal in the NEAR price prepares to ignite a new bullish phase that comes with a MACD crossover. Following the reversal, the NEAR price giving the $15 breakout will signal a new uptrend with the potential to surpass the all-time high of $46.
In conclusion, the Layer-1 blockchain sphere is a vibrant, ever-evolving landscape ripe with opportunity. From Ethereum’s groundbreaking shift to a proof-of-stake consensus with Ethereum 2.0 to Binance Coin’s resilience amidst regulatory challenges, these platforms underscore the innovative spirit of the crypto world.
Cardano’s commitment to sustainability and Solana’s high-speed capabilities exemplify the diversity of solutions these chains offer. As we journey through the decentralized realms of Polkadot, Avalanche, Algorand, Tezos, Cosmos, and NEAR Protocol, each ecosystem presents unique possibilities and the promise of growth.
For crypto investors and enthusiasts, these Layer-1 blockchains are not just investment avenues; they’re the architects of a new digital economy, beckoning a future where finance is democratized and innovation knows no bounds. Keep an eye on these titans and underdogs, for they hold the keys to crypto’s kingdom.