- Crypto cycle has been dominated by AI tokens and meme coins, while Layer 1 tokens like XTZ, IOTA, KLAY, ALGO, EOS pile losses.
- The assets wiped out over 75% of their value in the ongoing crypto cycle, with less hope for recovery.
- The recent developments have failed to catalyze a recovery in the prices of the Layer 1 tokens.
The cryptocurrency market is cyclical in nature and several Layer 1 tokens have noted a decline in their prices, as new narratives like Artificial Intelligence (AI) and meme coins dominate in 2024. Data on Layer 1 tokens shows a significant decline in their prices this cycle, drawdowns greater than 75%.
Layer 1 tokens fail to recover from over 75% decline in prices
Layer 1 tokens Tezos (XTZ), IOTA (IOTA), Klaytn (KLAY), Algorand (ALGO), and EOS.IO (EOS). Each of these Layer 1 tokens have suffered over 75% decline in their price in the ongoing crypto cycle.
Analyst behind the X handle @DeFiIgnas notes the drawdowns in the assets’ prices and asks whether these are “dead coins.”
1/3 L1s with no recovery this cycle:
— Ignas | DeFi (@DefiIgnas) June 29, 2024
• XTZ: -75%
• IOTA: -82%
• KLAY: -84%
• ALGO: -85%
• EOS: -87%
Abysmal performance. Dead coins? pic.twitter.com/JyPs5aarOb
The Layer 1 projects announced pivots in their strategy, new implementations and development plans, however it failed to catalyze gains. IOTA’s pivot to a Layer 2 chain or scaling solution did not positively impact the asset’s price.
The EOS Foundation is embroiled in a legal battle with Block,one, a firm that raised EOS funds and allegedly misused it.
Algorand recently launched LiquidAuth and strengthened its commitment to web3 with a series of partnerships in India, with T-Hub, Nasscom and TiE. However the developments faded the asset’s recovery, the token extended its decline.
USD Tether (USDT) recently pulled support for ALGO and EOS. It remains unclear whether the tokens will recover in the ongoing cycle or lose further mindshare and trade activity to newer narratives.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: BTC misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
$18 billion in Bitcoin and Ethereum options expire today: Market braces for big moves
A record-breaking $18 billion in Bitcoin and Ethereum options expire today, sparking anticipation of sharp market moves and potential volatility.
Crypto.com launches US trust company for digital asset custody
Crypto.com launches a US trust company to offer digital asset custody services, marking a major step in its North American expansion strategy.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.