Layer-1 Crypto Coins are like the powerhouses of the crypto world, providing the backbone for all the fantastic and innovative things happening in digital currency. Think of them as the foundation upon which all those eye-catching digital assets and smart applications are built.
These chains are unique, each boasting its own set of rules (consensus mechanisms), ways to handle many transactions (scalability), and to keep things safe and sound (security).
Why Are These Layer-1 Crypto Coins A Big Deal?
They are the playground for smart contracts – self-executing contracts that do the heavy lifting, according to the code they’re written in. This leads to the birth of decentralized applications (dApps) that run on a trustless mechanism.
This is huge because it means that anyone, anywhere can use these apps for all kinds of things, from buying a coffee with crypto to securing vital data without any middle man.
Let’s name 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, superfast blockchain that recently got a pat on the back from Cathie Wood of ARK Invest; and Polkadot, the connector, connecting different blockchains into a seamless web.
Why Do Crypto Investors Care About Layer-1 Crypto Coins?
Because Layer-1 coins are not just technological marvels; they are golden tickets to the future of decentralized finance. They are the engines that drive a new world where technology, investment and everyday life intersect.
For anyone looking to be a part of the next big thing in the crypto universe, watching these Layer-1 blockchains is like watching the stars of the digital economy in action.
Last 5 Years of Growth of Tier-1 Crypto Coins
The historical performance of Layer-1 blockchain coins has been a roller coaster of highs and lows, but reflects an overall bull run.
The chart we’re looking at provides a snapshot of this dynamic journey, highlighting the growth trajectories of some of the top tier 1 coins over the years to 2024.
Bitcoin (BTC), which is often considered the original 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), with a massive rise of 1753.31%, shows the explosive potential of Layer-1 platforms supporting smart contracts and dApps. The transition to Ethereum 2.0 could drive its significant growth as investors expect improved scalability and efficiency.
Cardano (ADA) saw an increase of 955.69%, 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 76% drop from its ATH, still made a notable impact with its ultra-fast and low-cost transactions. With 65% growth since its inception, Solana appeals to developers and users within the DeFi and NFT spaces.
Finally, Binance Coin (BNB) grew by 4507.28%, benefiting from the robust ecosystem of Binance, including its exchange, DEX and smart chain functions. This growth highlights the advantage of integrated tokens with comprehensive and widely used platforms.
These historic performances are not just numbers; they tell the story of technological advancements, community support, investor confidence, and the ever-evolving landscape of the crypto industry.
Why Small Cap Layer 1 Crypto Coins Are Important?
Now that we’ve established that Layer 1 coins are the main event, let’s examine 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 players in the game, because they could be the next big thing, opening up new opportunities for those willing to dive into the details.
Top Tier-1 Crypto Coins To Invest For 2024
Ethereum
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 by putting withdrawals on the execution layer, improving the strike ecosystem.
Before that, the August 2021 London upgrade reshaped the transaction fee market with EIP-1559, a critical economic layer adjustment. Each step reflects Ethereum’s commitment to continued growth, supporting its leading position in the Layer-1 space.
Binance (BNB)
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 commerce to decentralized finance.
Despite the recent scandal of criminal charges based on bending regulations, the BNB price is taking a nose dive. The price of the Binance token, falling close to the lower support of $200, projects a double-bottom reversal probability in the monthly chart.
The $200 support level led to multiple pullbacks and is teasing another bullish return to $300. In the long term, the new altcoin season could propel the BNB coin price to an all-time high above the $1000 psychological barrier.
Cardano (ADA)
Cardano stands out for its research-driven approach and proof-of-play mechanism. It aims to provide a balanced ecosystem with a strong focus on sustainability and interoperability.
The ADA price bounces back to $0.239 and teases a trend reversal. Despite an 87.52% discount, Cardano has the potential to surpass the all-time high measured in 2021. Therefore, an investment in ADA at a discount price can yield massive returns in the next bull run.
Solana (SUN)
Known for its impressive speeds and low transaction costs, Solana’s blockchain provides an ecosystem geared toward DeFi and NFTs. Additionally, the growing focus on high throughput and efficient consensus mechanisms is helping Solana build its name.
With a closing bottom pattern in the monthly chart, the SOL price is poised to resume a bullish climb. The remarkable high-speed turnaround in the last few weeks has increased the interests of institutional investors.
According to the Fibonacci levels, the SOL price could reach $350 for a new everyday.
Polka Dot (DOT)
Polkadot introduces a sharded multichain network that can process multiple transactions on multiple chains in parallel. It is designed to facilitate a Web 3.0 ecosystem, allowing different blockchains to work together.
As an underdog in Layer-1 blockchains, the Polkadot ecosystem has the potential to make it big in the next run. At a press time low of $5.28, the DOT price could make history, just like Bitcoin to form a new all-time post-2024 halving.
A reversal from the $5 mark will start a bull run to regain the lost levels and possibly surpass the $50 mark.
Avalanche (AVAX)
Avalanche prides itself on its fast transaction finality. Its ecosystem is designed for decentralized applications and custom blockchain networks, focusing on speed and low fees.
With a sharp bullish reversal with an 87% return this month, the AVAX price is on a roll to resume the uptrend. Avalanche Network’s growth and the overall market recovery, the AVAX price is set to regain the uptrend and reach the lost levels of triple digits.
Algorand (ALGO)
Algorand’s blockchain is designed to achieve speed, security and decentralization, all with a pure proof-of-play protocol. It supports a wide range of applications, including financial tools and services.
Algorand, the brainchild of MIT professor Silvio Micali, remains the crypto industry’s dark horse. With the support of someone at MIT and a powerful and pure proof of stake consensus mechanism, the ALGO price can soar again.
Furthermore, the Monthly chart shows a bullish trend reversal in the last few months; the ALGO price is poised to go higher. The MACD indicator is showing a bullish crossover and teasing a new uptrend. Therefore, the ALGO price trend shows the potential to reach double digit market prices in the coming times.
Tezos (XTZ)
Tezos focuses on key features such as chain management and self-modification 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. Additionally, the double bottom appears to be recurring in the altcoins, supporting a reversal.
Cosmos (ATOM)
Cosmos is often called the “Internet of Blockchains”, with the goal of creating 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 reversal with a morning star pattern brings a jump to $15. Additionally, the ATOM coin price maintains the double bottom streak visible in the other tier-1 coins, reflecting a sectoral bullish reversal approaching.
According to the Fibonacci levels, the trend reversal in the ATOM coin may reach the market price of $50.
NEAR Protocol (NEAR)
NEAR protocol emphasizes user and developer friendliness with a sharded, proof-of-play blockchain. It builds an ecosystem that is accessible and scalable, supporting applications such as DeFi, NFTs and more.
Maintaining a downtrend, the short-term reversal in the NEAR price is preparing to ignite a new bullish phase that comes with a MACD crossover. After the reversal, the NEAR price giving the $15 breakout will signal a new uptrend with the potential to surpass the $46 high.
Closure
In conclusion, the Layer-1 blockchain sphere is a vibrant, ever-evolving landscape ripe with opportunity. From Ethereum’s groundbreaking move to a proof-of-play consensus with Ethereum 2.0 to Binance Coin’s resilience in the face of 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 offers unique possibilities and the promise of growth.
For crypto investors and enthusiasts, these Layer-1 blockchains are not just investment avenues; they are 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 as they hold the keys to crypto’s kingdom.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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