During the initial quarter of 2024 (Q1), memecoins surged as the leading profitable crypto narrative, boasting substantial average returns of 1312.6% across its primary tokens, as indicated by a recent analysis and report from CoinGecko.
This exceptional figure notably exceeded returns from alternative narratives, underscoring the escalating appeal and fervor surrounding memecoins within the cryptocurrency realm.
Real-world assets (RWA) versus Memecoins
Three recently introduced tokens made their mark among the top 10 memecoins by market capitalization at the close of the quarter: Brett (BRETT), BOOK OF MEME (BOME), and Cat in a dogs world (MEW).
BRETT emerged as the leader in returns since its inception, boasting a remarkable gain of 7727.6%, closely trailed by dogwifhat (WIF) with a gain of 2721.2% over the quarter. Notably, the memecoin trend outshone other crypto narratives by a significant margin.
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In contrast to the second most profitable narrative, RWA, memecoins outperformed by 4.6 times, boasting returns 33.3 times higher than those of the Layer 2 narrative, which saw the lowest gains in Q1.
The RWA narrative, representing “Real-World Assets,” yielded returns of 285.6% in Q1. Despite briefly leading as the most profitable narrative in early February, RWA fell behind memecoins and artificial intelligence-based (AI) tokens in terms of returns. However, by the end of March, RWA managed to reclaim its position ahead of the AI narrative.
Standout performers in the RWA category included MANTRA (OM) and TokenFi (TOKEN), recording quarter-to-date (QTD) returns of 1074.4% and 419.7% respectively. The only decline in the RWA tokens came from XDC Network (XDC), dropping 15.6% for the quarter.
Artificial intelligence closely trailed RWA as the only other narrative delivering three-digit returns, reaching 222.0% in Q1. All major AI tokens saw gains, with AIOZ Network (AIOZ) leading at 480.2%, closely followed by Fetch.ai (FET) at 378.3%.
Even the lowest gainer in the AI category, OriginTrail (TRAC), posted a respectable 74.9% return during the quarter, indicating sustained interest in AI-related tokens.
Layer 1 Tokens Lag Behind
The decentralized finance (DeFi) narrative delivered moderate returns of 98.9% in the first quarter. In late February, the proposal to switch Uniswap (UNI) fees boosted DeFi returns. Standout performers in the DeFi tokens included Jupiter (JUP) with gains of 125.7%, Maker (MKR) with 121.2%, and The Graph (GRT) with 111.0% quarter-to-date (QTD).
In contrast, the Layer 1 (L1) narrative saw relatively lower profitability, with returns of 70.0% in Q1 2024. Despite Solana (SOL) gaining attention as a popular memecoin chain, top-performing large L1 cryptocurrencies were Toncoin (TON) and Bitcoin Cash (BCH), posting gains of 131.2% and 130.5%, respectively.
Bitcoin (BTC) soared to a 65.1% gain, achieving new all-time highs, while Ethereum (ETH) saw a more modest 53.9% increase, despite the anticipation surrounding US spot Ethereum ETF applications.
Layer 2 (L2) emerged as the least profitable crypto narrative in Q1, with a relatively lower gain of 39.5%. Established Ethereum L2 solutions underperformed, with Arbitrum (ARB) returning 5.6%, Polygon (MATIC) seeing a 1.2% gain, and Optimism (OP) closing the quarter with a slight decline of 1.2%. However, Stacks (STX) and Mantle (MNT) recorded relatively strong returns of 142.5% and 95.8% QTD, respectively.