Layer-1 Cryptocurrencies Investment Opportunities in 2024: Analysis of 15 Projects to Watch

Layer-1 Blockchains: Understanding the Importance of Infrastructure

In the crypto ecosystem, Layer-1 crypto coins represent the foundation of the entire system. These blockchain protocols differ from Layer-2 solutions built on existing networks; they are independent, fully functional networks responsible for final transaction settlement and network security maintenance.

With Ethereum’s evolution toward proof of stake and the ecosystem’s pursuit of more environmentally friendly blockchains, we see the industry continuously attempting to address the limitations of traditional Layer-1s. Meanwhile, the emergence of Layer-2 and Layer-3 protocols further enriches blockchain architecture options.

Core Features of Layer-1 Blockchains

Layer-1 blockchains serve as the underlying infrastructure, bringing several key features to the crypto economy:

1. Decentralization and Security Guarantees: Through distributed consensus mechanisms, these networks ensure no single entity can control the system; all transactions are tamper-proof, transparent, and traceable.

2. Independent Operation: Each Layer-1 has its own consensus mechanism and security model, capable of handling transactions and smart contract execution independently without relying on external systems.

3. Native Token Economy: Almost all Layer-1 projects are supported by native tokens used for paying transaction fees, staking to protect the network, and governance participation, forming a complete economic cycle.

4. Developer Ecosystem: As infrastructure, these platforms provide flexible deployment environments for developers, fostering thousands of decentralized applications.

5. Network Effects Advantage: Compared to Layer-2 solutions, mainstream Layer-1s benefit from stronger network effects. As user bases grow, the value and utility of the network also increase.

Notable Layer-1 Projects Overview

1. Solana (SOL) — Pioneer of High Throughput

Key Metrics:

• Current Price: $123.50
• Market Cap: $69.49B
• Yearly Performance: -37.47%
• TVL: $165 million

Solana, leveraging its innovative Proof of History consensus combined with Proof of Stake, has established a benchmark in high-performance blockchain. This mechanism enables the network to achieve exceptional transaction throughput, making it a popular choice for DApp developers.

The SOL token is used for transaction fee payments and as an asset for stakers and validators to secure the network. In 2023, the Solana ecosystem saw significant development: SIMD process standardization for protocol improvements; Firedancer validator upgrades promising substantial speed increases; and the emergence of quality DeFi protocols like Marinade Finance, Jito, as well as community tokens like BONK receiving popular airdrops.

2. Avalanche (AVAX) — Customizable Multi-Chain System

Key Metrics:

• Current Price: $12.46
• Market Cap: $5.35B
• Yearly Performance: -69.05%
• TVL: $781 million

Avalanche stands out in the Layer-1 space with its innovative consensus design, combining classical and Nakamoto consensus advantages to achieve a perfect balance of security, scalability, and decentralization. The network can finalize transactions in under two seconds, leading all major Layer-1s.

The AVAX token supports transaction fees, network staking, and multi-chain governance. Notably, in 2023, Avalanche’s C-Chain set a new daily transaction volume record (average 2.3 million transactions per day), driven by a surge in minting tokens and increased network activity.

3. Kaspa (KAS) — New Exploration in PoW

Key Metrics:

• Market Cap: $2.4B
• Yearly Performance: 1400%
• Consensus Innovation: GHOSTDAG mechanism

Kaspa employs the revolutionary GHOSTDAG consensus algorithm, breaking the limitations of traditional linear PoW blockchains. This innovation allows the network to achieve extremely high block generation speeds and instant finality.

Migrating from GoLang to Rust, Kaspa unlocks the full potential of modern hardware, achieving unprecedented block and transaction processing speeds. The KAS token’s value soared in 2023, reflecting market recognition of its technological direction.

4. Bitcoin (BTC) — The King of Digital Assets

Key Metrics:

• Market Cap: $841B (Global No.1)
• TVL: $302 million
• Yearly Performance: 86%

Bitcoin remains the most recognized and widely used asset in the crypto ecosystem. Known as “digital gold,” its fixed supply of 21 million BTC and decentralized nature make it the preferred store of value.

Major milestones in 2023 include the launch of Bitcoin Ordinals protocol, enabling NFTs to be directly minted on Bitcoin (e.g., ORDI, SATS); the rise of Layer-2 solutions like Stacks, adding smart contract capabilities to Bitcoin ecosystem.

5. Internet Computer (ICP) — Ideal for On-Chain Computing

Key Metrics:

• Current Price: $3.03
• Market Cap: $1.65B
• Yearly Performance: -72.87%
• TVL: $33 million

ICP, developed by the DFINITY Foundation, represents a new understanding of blockchain application potential. It supports not only smart contracts but also the operation of full software systems on-chain, unimaginable in traditional blockchains.

Its unique advantage lies in high transaction throughput and scalability. Breakthroughs in 2023 include WebSocket integration for real-time interaction, HTTPS API support, and direct integration with Bitcoin.

6. Sei (SEI) — DeFi-Optimized Chain

Key Metrics:

• Current Price: approximately $0.12-0.15
• Market Cap: $1.4B
• Yearly Performance: 7283%
• TVL: $10.44 million

Sei is optimized for DeFi scenarios, with built-in order book matching engine and native trading tools that significantly improve DEX and trading protocol efficiency, reducing latency.

SEI tokens are used for fee payments, governance, and staking. In 2023, Sei’s ecosystem fund increased to $120 million, attracting investments from institutions like Foresight Ventures, with notable expansion in Asian markets.

7. Sui (SUI) — Innovative Use of Move Language

Key Metrics:

• Current Price: $1.41
• Market Cap: $5.25B
• Yearly Performance: -68.77%
• TVL: $488 million

Sui uses the Move programming language for smart contracts, offering developers higher security and flexibility. After mainnet launch, it quickly demonstrated scalability, with single-day transactions surpassing 65.8 million.

Innovations like zkLogin allow users to access dApps via Web2 social accounts, greatly improving user experience. Strategic token distribution and programs like TurboStar promote healthy ecosystem development.

8. Aptos (APT) — Pioneer of Move Ecosystem

Key Metrics:

• Current Price: $1.69
• Market Cap: $1.27B
• Yearly Performance: -82.32%
• TVL: $171 million

Aptos also adopts Move but follows a unique technical path. Its key innovation is the parallel execution engine, significantly boosting transaction speed and network throughput.

Supported by investors like Tiger Global and PayPal Ventures, Aptos has secured $400 million in funding. Achievements in 2023 include integrations with Sushi, Coinbase Pay, and ecosystem expansion with Microsoft and other major companies.

9. Polkadot (DOT) — Core for Cross-Chain Communication

Key Metrics:

• Current Price: $1.71
• Market Cap: $2.82B
• Yearly Performance: -77.14%
• TVL: $162 million

Polkadot addresses blockchain interoperability via the Inter-Blockchain Communication (IBC) protocol. Its multi-chain architecture allows parallel chains (parachains) to share security and liquidity.

DOT tokens are used for governance, staking, and parachain connectivity. Highlights in 2023 include the launch of parachains, the release of Polkadot 2.0 vision, and a 49% increase in staking participation.

10. Cosmos (ATOM) — Interoperability Network

Key Metrics:

• Current Price: $2.03
• Market Cap: $982.36M
• Yearly Performance: -70.82%
• Cosmos Hub TVL: $1.6 million

Cosmos creates a decentralized network of independent blockchains communicating via the IBC protocol. This architecture maintains chain sovereignty while enabling true interoperability.

ATOM is mainly used for staking, security, and governance. 2023 developments include the launch of Interchain Security, Interchain Accounts, Liquid Staking support, and the Cosmos Hub 2.0 roadmap.

11. Ethereum (ETH) — The Immortal Foundation of Ecosystem

Key Metrics:

• Current Price: $2.97K
• Market Cap: $358.03B (Second globally)
• Yearly Performance: -15.16%
• TVL: $35 billion

Ethereum remains the largest and most active platform in the Layer-1 ecosystem. With the biggest developer community and over 3,000 active dApps, its dominance in DeFi, NFTs, and Web3 is unquestioned.

The full implementation of Ethereum 2.0 signifies ongoing evolution toward higher scalability and energy efficiency. Layer-2 rollup solutions further enhance network capacity while maintaining mainnet security.

12. BNB Chain (BNB) — Center of Exchange Ecosystem

Key Metrics:

• Current Price: $839.80
• Market Cap: $115.67B
• Yearly Performance: +19.54%
• TVL: $3.6 billion

BNB Chain (formerly Binance Smart Chain), supported by the world’s leading exchange Binance, has become the second-largest Layer-1 ecosystem since 2020. Its dual-chain architecture enables seamless asset transfer, with over 1300 dApps running on it.

BNB tokens fuel the platform’s transaction fees, staking, and governance. In 2023, a brand upgrade highlighted its ambitions in DeFi and NFTs, with ongoing Layer-2 integrations and cross-chain bridges.

13. Cronos (CRO) — Infrastructure of Crypto.com

Key Metrics:

• Current Price: $0.09
• Market Cap: $3.60B
• Yearly Performance: -40.92%
• TVL: $329 million

Cronos launched in 2021, based on Cosmos SDK, as a relatively young Layer-1. Backed by Crypto.com, it provides a fast, secure, and interoperable environment for DeFi, NFT, and GameFi applications.

Utilizing PoS consensus and Cosmos SDK, Cronos integrates seamlessly with other Cosmos-based chains, hosting over 200 dApps. Focus in 2023 includes ecosystem expansion, Cronos Rollups launch, and enhanced developer support.

14. Kava (KAVA) — Hybrid of EVM and Cosmos

Key Metrics:

• Current Price: $0.08
• Market Cap: $82.63M
• Yearly Performance: -84.09%
• TVL: $2.34 billion

Kava combines Cosmos SDK’s scalability with EVM compatibility through its “co-chain” architecture, creating an ideal environment for DeFi innovators. This hybrid design attracts developers seeking fast transactions and low fees.

KAVA tokens serve as governance and staking assets. The platform’s USDX stablecoin and native USDt support enhance DeFi capabilities. Latest upgrades like Kava 14 continue optimizing user experience and network performance.

15. ZetaChain (ZETA) — Omnichain Vision

Key Metrics:

• Current Price: $0.07
• Market Cap: $80.51M
• Yearly Performance: -88.84%
• TVL: $610,000

ZetaChain aims to be the first “omnichain” Layer-1, capable of interacting with any blockchain regardless of architecture or smart contract capabilities. Its ambitious design supports cross-chain asset transfers, data exchange, and even cross-chain contract execution.

ZETA tokens underpin the network’s operation, driving the creation of a truly unified Web3 experience. As cross-chain demand grows, ZetaChain represents a key attempt to solve blockchain fragmentation.

Investment Outlook and Conclusion

The Layer-1 crypto market in 2024 shows diversified characteristics. From Solana’s high throughput to Polkadot’s cross-chain coordination, from Bitcoin’s store of value to Internet Computer’s on-chain computing, each project addresses different dimensions of blockchain development.

Investing in Layer-1 projects requires consideration of technological innovation, ecosystem development, market recognition, and long-term sustainability. Current data indicates most projects have moved from early stages to mature development, with the market becoming more rational. Projects with clear technical roadmaps, active developer communities, and real-world applications tend to perform more steadily over cycles.