What are the most profitable encryption narratives in 2024? Research: AI, Meme coin has increased more than 20 times.

Original text: Coingecko

Translated by: Yuliya, PANews

The analysis of 'Top 10 Project with the Highest Increase in 2024: Over 230 Times Increase, 7 Meme Coins on the List' has attracted widespread attention. In order to have a more comprehensive understanding of the development trend of the cryptocurrency market, this study analyzed the major narrative themes in the cryptocurrency market from January 1st to December 29th, 2024, based on market data from CoinGecko.

By tracking the performance of the top 10 tokens in each theme, calculate their relative average return since the beginning of the year (or the first trading day). The study selected representative tokens with a high year-end market value ranking and excluded specific public chain ecosystems and areas with high overlap with other themes. The results show significant differences in annual returns for different narrative themes, with a range from -20.7% to +2,939.8%.

AI and Meme coins are leading the market

The most eye-catching narrative theme in the cryptocurrency market in 2024 is the AI field, with an average YTD increase of 2,939.8%. It is followed by the Meme coin field, which has a return rate of 2,185.1% in 2024. The returns of these two major fields are more than double those of other popular narrative themes.

In the field of Meme coin, it has been significantly leading since March, with a monthly yield soaring from 96.6% to 1,713.1%. Despite the high volatility, Meme coin has maintained the highest returns for most of 2024. However, after reaching a historical high return of 3,211.4% on December 9th, the sector experienced a pullback as market interest waned.

In contrast, the AI sector saw a strong rebound at the end of the year, with a return rate in December that almost doubled from 1,598.1% to 2,939.8%. This is mainly due to the explosive growth of the AI agency platform Virtuals Protocol (VIRTUAL), which also became the token with the largest increase in the cryptocurrency market in 2024. In the end, the AI sector surpassed Meme coin at the end of December to become the annual profit champion.

Real World Assets (RWA) ranked third with an annual average yield of 819.5% in the real world asset field. The field performed steadily at the beginning of 2024, with a yield of 365.3% on April 12th. It then consolidated sideways for the next 6 months until November, when it restarted an upward trend driven by the rising price of MANTRA (OM) in the RWA field.

Layer 1, DePIN, and DeFi have performed mediocre in the field.

Layer 1 and decentralized physical infrastructure (DePIN) and decentralized finance (DeFi) performed similarly in 2024, with returns of 142.5%, 135.4%, and 101.4% respectively. This means that Layer 1 and DePIN only slightly outperformed the 125.5% increase in Bitcoin during the same period, and the performance of the DeFi sector was even worse than Bitcoin.

In other words, conservative investors can simply hold Bitcoin to achieve returns comparable to at least three major narrative themes.

Poor performance in gaming and Layer 2 field.

GameFi and Layer 2 became the worst-performing sectors in 2024, even worse than Ethereum's 49.0% increase. Specifically, the GameFi sector only rose by 14.7% during the year, while 6 out of the top 10 gaming tokens experienced declines ranging from 3.1% to 32.9%.

Layer 2 is the only area with negative returns in 2024, falling by 20.7%. Amid the trend of various projects seeking to launch their own Layer 2 solutions, 7 out of the top 10 Layer 2 tokens have experienced price drops ranging from 6.3% to 75.3%.

The most profitable crypto narrative in 2024

Performance of the cryptocurrency narrative in 2024, ranked by the average annual price return of its top 10 tokens:

(The above content is excerpted and reproduced with the authorization of the partner PANews. Original link )

Statement: The article represents only the author's personal opinions and does not represent the opinions and positions of Blockchain. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and the author and Blockchain will not be responsible for any direct or indirect losses incurred by investors.

The article "What are the most profitable crypto narratives in 2024? Study: AI, Meme coins surged more than 20 times" was first published in "Block Cast".