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Are Meme Coins the most profitable cryptocurrency niche so far in 2024?
The first half of 2024 is over, and on-chain experts have been collecting data to determine the profitable sectors so far this year.
Second coverage According to Colin Wu, an independent cryptocurrency journalist, memecoins have become the most profitable sector in the first half of 2024, followed by Real World Assets (RWA) and Artificial Intelligence (AI).
Memecoins are the most profitable
Wu analyzed the rate of return of the top ten tokens by market cap in each sector using data from CoinGecko by comparing their average daily return to prices at the start of the quarter. The tokens were selected based on their ranking on the last day of the quarter.
Memecoins have recorded an average return rate of 2405.1% in 2024. As of June 19, three of the top ten memecoins by market cap were tokens launched around March-April. They include Brett (BRETT), Book Of Meme (BOME), and DOG•GO•TO•THE•MOON (DOG).
Brett had the highest return rate, soaring 14353.54% from its issue price, while dogwifhat (WIF), another noteworthy project, rose 933.93%.
“In recent months, the phrase ‘value investing is empty, bet everything on MEME to live in the palace’ has gradually become one of the mantras of this bull market,” Wu said.
DeFi and GameFi are behind
The profitability of memecoins is 8.6 times higher than that of the RWA sector, which had a rate of return of 213.5%, and at least 500 times higher than that of the least profitable sectors, which include decentralized finance (DeFi), GameFi and Layer 2.
RWA briefly became the most profitable sector in February as it was heavily discussed in the traditional finance space, with giants like asset manager BlackRock investing there. Top RWA tokens by market value include Mantra (OM) and Ondo (ONDO), which recorded gains of 1123.8% and 451.12%, respectively.
Additionally, the AI sector has seen an average rate of return of 71.6%, with tokens like Arkham (ARKM) and AIOZ Network (AIOZ) posting gains of 215.5% and 192.19% respectively .
Sectors such as decentralized physical infrastructure networks (DePIN) and Layer 1 have seen steady growth, achieving rates of return of 58.7% and 43% respectively. Wu said DePIN has huge growth potential and is one of the capitalized sectors in this bull market.