According to a recent report by CoinGecko, AI tokens and meme coins emerged as the most profitable crypto narratives of 2024. AI-related cryptocurrencies recorded a staggering 2,939.8% year-to-date (YTD) return, while meme coins followed with a 2,185.1% return. These figures position AI and meme coins as twice as lucrative as other major crypto narratives. Here’s a closer look at the trends.
Meme Coins Fall Behind AI in 2024
Meme coins saw explosive growth early in the year, with returns skyrocketing from 96.6% to 1,713.1% in March. Despite significant volatility, meme coins maintained their position as a top-performing narrative for much of 2024, even hitting a record 3,211.4% return by December 9. However, interest waned by the year’s end, leading to price pullbacks.
In contrast, the AI narrative gained traction in December, doubling its returns from 1,598.1% to 2,939.8%. This surge was fueled by the rising popularity of Virtuals Protocol (VIRTUAL), an AI-powered crypto platform that became 2024’s best-performing asset. By late December, AI tokens had overtaken meme coins as the most profitable crypto narrative of the year.
RWA: The Third Most Lucrative Narrative
Real World Asset (RWA) tokens secured the third spot, delivering an average YTD return of 819.5%. RWA’s growth was steady early in the year, reaching a 365.3% return by April 12. Following months of stagnation, the narrative regained momentum in November, driven by the performance of MANTRA (OM).
Advertisement Banner
Modest Gains for DeFi, DePIN, and Layer-1
Other narratives, such as Layer-1, DePIN, and DeFi, posted modest returns in 2024. Layer-1 tokens recorded a 142.5% return, while DePIN and DeFi followed with 135.4% and 101.4%, respectively. Interestingly, Bitcoin’s 125.5% return slightly outperformed Layer-1 and DePIN, proving that holding Bitcoin alone could match the gains of several leading narratives.
Underwhelming Performance from Layer-2 and GameFi
Layer-2 and GameFi tokens underperformed significantly. GameFi assets delivered a mere 14.7% return, with six of the top ten gaming tokens reporting losses ranging from 3.1% to 32.9%. Meanwhile, Layer-2 projects recorded a negative return of 20.7%, marking the only losing narrative of 2024. Seven out of the top ten Layer-2 tokens suffered price declines of 6.3% to 75.3%.
The Takeaway
As noted by The Bit Journal, 2024’s crypto landscape was defined by the dominance of AI tokens and meme coins, with AI emerging as the clear winner by year-end. While Real World Asset tokens offered strong returns, traditional narratives like DeFi and Layer-1 showed only moderate gains. The underperformance of Layer-2 and GameFi tokens highlights the challenges faced by these sectors.
For investors, the year reinforced the importance of adapting to emerging trends and maintaining a diversified portfolio to capitalize on shifting market dynamics.
- https://twitter.com/Thebitjournal_
- https://www.linkedin.com/company/the-bit-journal/
- https://t.me/thebitjournal
Follow us on Twitter and LinkedIn and join our Telegram channel to get instant updates on breaking news!
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
