Research Summary

The report provides a comparative analysis of the performance of different cryptocurrency sectors in the first half of 2024. It highlights the most profitable sectors, including meme coins, RWA, and AI, and discusses the performance of other sectors such as DePIN, Layer 1, GameFi, DeFi, and Layer 2.

Key Takeaways

Meme Coins Lead in Profitability

  • Outstanding Performance of Meme Coins: Meme coins have been the most profitable sector in 2024 so far, with an average return rate of 2405.1%. Three of the top 10 meme coins by market value were newly launched tokens around March-April: Brett (BRETT), BOOK OF MEME (BOME), and DOG•GO•TO•THE•MOON (DOG).

RWA and AI Sectors Show Promising Returns

  • RWA Sector’s Strong Performance: The RWA (Real World Assets) sector has had a return rate of 213.5% so far in 2024. Major institutional giants such as BlackRock have shown interest in this sector. MANTRA (OM) and Ondo (ONDO) had the largest increases among the top RWA tokens by market value.
  • AI Sector’s Solid Returns: The AI sector has had an average return rate of 71.6% so far in 2024, ranking third. Arkham (ARKM) had the highest increase, at 215.50%, followed by AIOZ Network (AIOZ), up 192.19%.

DePIN and Layer 1 Achieve Steady Growth

  • DePIN’s Reversal of Decline: DePIN had mostly negative returns in the first quarter, but since March, it has reversed its decline, reaching a return rate of 58.7% so far. JasmyCoin (JASMY) performed the best among the major market cap DePIN tokens.
  • Layer 1’s Moderate Returns: The Layer 1 (L1) sector has had a return rate of 43.0% so far in 2024. The best-performing major market cap L1 cryptocurrencies are Toncoin (TON) and Binance Coin (BNB).

GameFi, DeFi, and Layer 2 Lag Behind

  • GameFi’s Slow Performance: The GameFi sector has a return rate of 19.1%, with relatively little rotation in the market from the beginning of the year until now. FLOKI (FLOKI) performed the best among the major market cap GameFi tokens.
  • DeFi’s Lost Momentum: The DeFi sector performed reasonably well in the first quarter, but lost momentum in the second quarter, with a YTD return rate dropping to 3.4%.
  • Layer 2’s Negative Returns: The Layer 2 (L2) sector performed the worst, with a return rate of -40.59%, nearly halving. AEVO (AEVO) and Starknet (STRK) performed the worst among major market cap L2 tokens.

Actionable Insights

  • Monitor Meme Coins: Given their outstanding performance, investors should keep a close eye on the meme coin sector for potential opportunities.
  • Consider RWA and AI Sectors: The strong performance of the RWA and AI sectors suggests that these areas could be worth exploring for potential growth.
  • Assess DePIN and Layer 1 Sectors: Despite their steady growth, investors should carefully assess the DePIN and Layer 1 sectors, considering their potential for future growth.
  • Be Cautious with GameFi, DeFi, and Layer 2 Sectors: Given their lagging performance, investors should exercise caution when considering investments in the GameFi, DeFi, and Layer 2 sectors.

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