Different cryptoassets are about to close the first half of 2024 with large price gains despite recent setbacks, which portends their possible future for the remainder of the year.
The price of bitcoin registers an increase of 45% so far in 2024This is despite it remaining in a trading range below the new all-time high of $73,700 recorded in March, as the chart shows. Similarly, while ether (ETH) has yet to regain its record high reached three years ago, it is still showing gains of almost 50% for the year.
Bitcoin price so far in 2024. Source: TradingView. Recently, ETH has gained greater momentum than BTC due to the approval of exchange-traded funds (ETFs) for this cryptocurrency in the United States. The SEC, securities regulator, estimated that the launch will be sometime during the country's summer, a season that runs from June to September. Beyond the performance experienced by bitcoin and ether, the two crypto assets with the highest capitalization, various niches have stood out. The memecoin market is the one that shows the best performance, with an average increase of 1,800% so far in 2024 for the top ten tokens. This can be seen below.
Cryptocurrency sectors with the best performance in the first half of 2024. Source: Wublock. Several of the top 10 memecoins by capitalization were launched after the 2021 bull market, reflecting the strong growth of this niche. Some were even born this year, such as BRETT, which experienced an increase of 14,300% and dogwifhat (WIF) of 900%. In part, this scenario has been driven by the lack of useful altcoins (cryptocurrencies other than bitcoin). Furthermore, the interest behind memecoins is due to the humor they generate and their ease of growth due to their low capitalization. “The phrase 'value investing is empty, go all out on meme to live in the palace' has gradually become one of the mantras of this bull market,” says market analyst journalist Colin Wu.
RWA and AI cryptocurrencies follow memecoins in performance
The cryptocurrency sector that follows memecoins in best performance of the year is the real world assets (RWA), which translates as “real world assets”. These crypto assets They follow the price of traditional assets such as Treasury bonds or real estate. The ten RWA tokens with the highest capitalization achieved an average increase of 210% in the first half of 2024. In this way, interest in exposure to traditional finance assets through cryptoassets seems to be growing. However, it should be noted that its performance was 8.6 times lower than that of memecoins.
Just after the RWA niche, the one that registers the most gains in the year is cryptoassets related to artificial intelligence (AI). So far this year, the sector's top ten tokens, shown below, are up an average of 70%. This is because developments in this area are booming, spreading enthusiasm in the markets.
Cryptoassets from AI projects with the highest market capitalization. Source: CoinMarketCap. “AI has become the new darling of the technology field,” says Wu. The growth potential that this industry has is benefiting not only the shares of companies in the sector, but also cryptoactive projects based on this technology. Meanwhile, other niches have also been motivated upwards, although to a lesser extent. Among them, the cryptoassets of decentralized infrastructure networks (DePIN) stand out with a rise of 58%, layer 1 with 43% and GameFi with 19%. This is taking into account the prices of the top ten tokens in each sector. New catalysts from these niches, as well as a revival of bitcoin's rise, may benefit these markets. According to Wu, the recent price decline is due to a natural pause in consolidation to continue upwards. “The main wave of the bull market has not yet arrived, and there will still be many opportunities,” she considered. Beyond growth expectations, it is worth taking into account the risks associated with trading. As BitcoinDynamic reported, many cryptocurrencies that become popular tend to drop in price precipitously when market enthusiasm fades. Therefore, it is crucial to establish strategies to avoid unwanted losses.