- 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.
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