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These three categories of cryptocurrencies present dip buying opportunities
- Meme coins have emerged as the most profitable sector in 2024, with average returns above 2,400%.
- AI tokens and RWAs are two other key elements that drive profitability for holders.
- RWA’s WIF, BONK, BOME meme coins, AI NEAR, FET and ONDO and PENDLE tokens represent a buying opportunity for traders.
Meme coins, artificial intelligence (AI), and tokenization of real-world assets (RWA) are the dominant narratives as the first half of 2024 draws to a close. A report from analysts at Biteye shows that the three sectors have emerged as the most profitable in 2024.
According to the average year-to-date rate of return of the top 10 tokens in each of the three sectors, the performance is as follows:
Ranking of crypto sector returns in the first half of 2024
The most profitable sector in the first half of 2024 is meme coins
The shift in narrative from value investing to going “all-in” on meme coins happened in the first half of 2024. This gradual shift has made the meme coin sector one of the most profitable compared to Layer 1, Gaming Finance, DeFi, Layer 2, EthereumBitcoin, Real World Assets (RWA), and Artificial Intelligence (AI).
As of June 19, three of the top 10 meme coins ranked by market cap launched in March or April 2024: Brett (BRETT), Book of MEME (BOME), and Dog go to the moon (DOG).
The report shows that BRETT has had the highest return of 14.353% from its issue price, that WIF has rallied more than 933% year-to-date (YTD), and that the profitability of meme coins is over 500 times that of the least profitable sector, DeFi.
Among the major meme coins, Dogwifhat (WIF), BOME and Bonk (BONK) fell between 2% and 4% in the span of 24 hours and their market capitalization is above $625 million. The first three meme tokens offer traders the opportunity to “buy the dip” before the next impulse in the narrative.
Average returns of the top 10 tokens by market value in each sector
AI tokens and RWA among the sectors with the highest gains in 2024
The second most profitable sector, RWA, offered traders returns of 213% in 2024. The concept of RWA made headlines and institutional investors like BlackRock discussed it in H1 2024.
In February 2024, RWA was briefly the most profitable sector among the three, but meme tokens and AI later overtook it.
The leading token in the RWA narrative is Ondo Finance (ONDO), with year-to-date gains of 451%. Among the top three tokens in the sector, ONDO, Pendle (PENDLE) and Mantra (OM) have lost between 3% and 6% of their value in the last 24 hours. This gives traders a buy-the-dip opportunity on Thursday.
RWA narrative assets
The Artificial Intelligence Sector has offered traders gains of more than 71%. Among the top tokens in the sector, Arkham (ARKM) has rallied 215% and AIOZ Network has added 192% to its value. Prices of NEAR Protocol (NEAR), Fetch.ai (FET), Internet Computer (ICP) have fallen between 2% and 5% in the last 24 hours. The three AI tokens represent an opportunity for traders to “buy the dip.”
AI tokens
According to data from CoinGecko, the market capitalization of the three sectors fell by almost 3% in the last 24 hours.