While some Layer 1 tokens achieved remarkable gains in 2024, several projects experienced significant losses, highlighting the volatile nature of the cryptocurrency market. The most substantial decline came from Entangle (NGL), which saw its value plummet by 95.3% since its March 2024 launch.
According to a report by CoinGecko, Entangle’s dramatic decline stems primarily from its initially high valuation at launch, followed by continuous downward pressure throughout the year.
Which Layer 1 coins saw the largest price declines this year as of November 18, 2024? 🔍
Our study shows that $NGL had the biggest price decline with a -95.3% drop YTD, followed by $KUJI and $TRIAS with -86.7% and -83.4%, respectively.
Read the full study:… pic.twitter.com/N7j5N4RARt
— CoinGecko (@coingecko) December 4, 2024
Similarly, Kujira (KUJI) faced an 86.7% loss, attributed to the team’s aggressive leveraged liquidity positions that backfired during periods of market volatility. Trias Lab (TRIAS) rounds out the top three declines with an 83.4% drop.
Layer 1 Launches Struggles
The challenging market environment particularly affected new Layer 1 launches in 2024. Saga (SAGA) and Omni Network (OMNI), both launched in April, suffered losses of 69.9% and 68.8%, respectively. Aleo (ALEO), launched in September, declined 58.1%, while Zeta Chain (ZETA), debuting in February, dropped 57.3%.
Other notable declines include Router Protocol (ROUTE) with a 24.8% loss since its July launch and Ice Open Network (ICE) showing a 34.5% decrease since January. Only Kaia (KAIA), launching in late October, managed to maintain positive territory with a modest 5.2% gain.
These losses highlight the challenges faced by new Layer 1 projects in an increasingly competitive market. High initial valuations, combined with market volatility and the need for sustained innovation and adoption, have created a challenging environment for new entrants.
The performance disparity between established and new Layer 1 projects suggests the importance of sustainable growth strategies and realistic valuation models in the cryptocurrency space.
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