Which Crypto Segment Has Been the Most Profitable in the First Half of 2024?
The crypto market in the first half of 2024 has witnessed GameFi, DeFi, and Layer-2 sectors slightly lagging behind emerging segments and the frenzy surrounding memecoins.
Which crypto segment has been the most profitable in the first half of 2024? Image: GN Crypto
Profitable Crypto Segments for Investors
As we approach the end of the first six months of 2024, the market has seen considerable volatility since Bitcoin broke the previous cycle's peak. Despite expectations, the anticipated growth wave has yet to arrive. The era of "easy money" seems to have passed, so which sector is currently yielding the highest returns? Let's take a look at a recent report with Coin68.
According to data compiled from BitEye, CoinGecko, and Wu Blockchain, memecoins continue to dominate, boasting an average year-to-date (YTD) return of a record-high 1,834%, surpassing the next profitable sector by 8.6 times and 542.5 times the least profitable area.
In second place is the segment of Real-World Asset (RWA) cryptocurrencies, delivering a 214% return for investors. Artificial Intelligence (AI) blockchain projects and Decentralized Physical Infrastructure (DePIN) closely follow with returns of 72% and 59%, respectively.
Layer-1 platforms have provided an average return of 43%, while GameFi and DeFi have shown modest performances at 19% and 3% respectively. Notably, Layer-2 has experienced a sharp decline, averaging a loss of 41%.
In terms of digital assets, Bitcoin and Ethereum continue to lead, with annual increases of 50% and 45%, respectively.
Top Spot for Memecoins
Overall, Solana remains a vibrant hub for memecoins. As of June 19, three out of the top 10 meme coins in the market were recently launched tokens around March-April: Brett (BRETT), BOOK OF MEME (BOME), and DOG•GO•TO•THE•MOON (DOG).
BRETT has seen the highest profits, surging by 14,353.54% since its issuance. dogwifhat (WIF) has accelerated by 933.93% since the beginning of 2024, sparking the memecoin craze at that time.
Just in May, half a million tokens joined this ecosystem. Influential figures like Andrew Tate, rapper Lil Pump, and Iggy Azalea rushed to introduce their memecoins here. However, many of these tokens have faced allegations of insider trading and price manipulation.
Solana's user-friendly architecture and features have simplified token deployment and smart contracts, leading Pantera Capital to label Solana as the "MacOS of blockchain."
Real-World Asset (RWA) Takes Second Place
It would be remiss not to mention the absence of Real-World Asset (RWA) cryptocurrencies, a topic of great interest to investors and banks alike. Giants like BlackRock have joined this race.
Among the leading RWA tokens in the market, MANTRA (OM) and Ondo Finance (ONDO) have outperformed the most, with dominant increases of 1,123.8% and 451.12%, respectively. XDC Network (XDC) lags behind with a decrease of 44.38%. Aside from a few DeFi projects in the previous cycle, most RWA projects are still in their early stages and require further observation.
Real-World Asset cryptocurrencies involve using blockchain technology to represent ownership rights of physical assets such as real estate, art, or commodities in the form of digital tokens. RWAs are considered the next frontier in the digital money sector, potentially representing a substantial portion of the global $874 trillion asset market, including investment funds, stocks, bonds, mutual funds, and real estate outside the digital world.
AI Sector Shows High Returns
Since late 2023, AI has consistently featured in annual outlooks of investment organizations. As forecasted in Messari's 2024 predictions, AI is seen as the "new darling" of the tech sector. Indeed, this sector has seen an approximate 72% return this year.
Noteworthy mentions include Arkham (ARKM) and AIOZ Network (AIOZ), with growth rates of 215,505% and 192.19%, respectively. Render (RNDR) and Fetch.ai (FET) have also made favorable impressions, with YTD returns of 57.47% and 116.00%, respectively.
Stable Growth for DePIN and Layer-1
DePIN was almost in negative profit in the first quarter, but this trend has reversed since March, yielding a 58.7% profit to date.
JasmyCoin (JASMY) leads with a 323.42% increase. Conversely, Helium (HNT) has performed the worst in this segment, with a YTD return of -50.94%.
Layer-1 platforms have continued steady growth in 2024. Truly promising cryptocurrencies in this segment include Toncoin (TON) and Binance Coin (BNB), with returns of 204.72% and 86.10%, respectively.
Despite Solana being a haven for memecoins, SOL's YTD has significantly decreased by 85.05% since mid-March.
GameFi, DeFi, and Layer-2 Lag Behind
The GameFi sector recorded a profit rate of 19.1%. However, it has not yet produced any prominent highlights within the reference timeframe.
FLOKI (FLOKI) has performed the best with a 362.79% increase. Tokens with negative profits include Gala Games (GALA) and Immutable (IMX).
DeFi also made a splash in the first quarter, largely due to Uniswap's fee-sharing proposal with users in late February. However, this sector has gradually lost momentum in Q2, with YTD returns dropping to 3.4%. Among the largest DeFi tokens, Maker (MKR) has the highest YTD at 49.88%.
The Layer-2 sector has also seen a decline, with an average return of nearly half, reaching -40.59%. AEVO (AEVO) and Starknet (STRK) have performed the worst, with YTD returns of -85.40% and -63.16%, respectively.
Even Ethereum's Layer-2 solutions have struggled. The leading Optimism (OP) and Arbitrum (ARB) have YTD returns of -54.64% and -53.71%, respectively. Rarely mentioned Mantle (MNT) has managed a positive YTD of 26.09%.
