- AI and memecoins led 2024 with massive returns, outpacing other crypto sectors.
- RWAs surged in late 2024, driven by growing interest in real-world value assets.
- Gaming and Layer 2 narratives underperformed, lagging behind other market trends.
The crypto market in 2024 has been defined by striking performances across various narratives, with some seeing extraordinary gains while others faltered. According to Coingecko research, among the most profitable crypto themes this year, AI, memecoins, and real-world assets (RWA) dominated, offering returns.
These narratives outperformed even the more established players like Layer 1, DePIN, and DeFi, which saw more modest gains. Here’s a breakdown of the most notable stories in the crypto space and their impact on market trends.
AI and Memecoins Lead the Pack
The AI narrative recorded the highest return in 2024, with a remarkable 2,939.8% YTD. This surge was fueled by the rise of AI-driven projects like Virtuals Protocol (VIRTUAL), which became the top crypto gainer for the year. As AI tools and platforms gained more attention, the sector’s momentum accelerated, especially in December, when returns nearly doubled from earlier in the year.
Memecoins, closely following AI in profitability, posted an impressive 2,185.1% return YTD. This narrative began its dramatic rise in March, with memecoins jumping from 96.6% to 1,713.1% returns in just one month.
Despite a pullback in December after hitting a peak return of 3,211.4%, memecoins were a significant driver of market excitement in 2024. Though their popularity waned by the end of the year, the returns were still exceptional compared to other sectors.
RWA’s Resurgence and Steady Growth
Real-world assets (RWA) emerged as the third most profitable crypto theme, with an average return of 819.5%. The RWA narrative started the year with steady growth, and while it saw a period of stagnation, it regained momentum in November.
This recovery was spurred by a surge in the price of MANTRA (OM), which led the rally. The performance of RWAs highlights the growing interest in crypto assets tied to real-world value and their potential for sustained growth.
Modest Returns for Layer 1, DePIN, and DeFi
Although Layer 1, DePIN, and DeFi saw positive returns, they lagged significantly behind AI and memecoins. Layer 1 recorded a 142.5% return, closely followed by DePIN with 135.4% and DeFi with 101.4%.
Interestingly, these returns barely outpaced Bitcoin’s 125.5% growth, which means that holding Bitcoin itself would have provided comparable profits to these narratives. For conservative investors, Bitcoin remained a strong performer.
Struggles for Gaming and Layer 2 Narratives
Gaming and Layer 2 narratives saw some of the weakest performances in 2024. The GameFi narrative, which had initially shown promise, returned only 14.7% YTD. Most gaming tokens saw losses, with some experiencing drops as high as 32.9%.
Similarly, Layer 2 technologies, despite their potential, posted a negative return of 20.7%. This underperformance can be attributed to increased competition and a growing number of projects attempting to create their own Layer 2 solutions.
