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Memecoins Reign Supreme: CoinGecko Reveals Most Profitable Crypto Narrative Of Q1

In the first quarter of 2024 (Q1), memecoins emerged as the most profitable crypto narrative, delivering massive average returns of 1312.6% across its top tokens, according to a recent study and report conducted by CoinGecko.

This figure far surpassed the returns of other narratives, highlighting the growing popularity and frenzy surrounding memecoins in the cryptocurrency market.

RWA Vs Memecoins

Three newly launched tokens were among the top 10 memecoins by market cap at the end of the quarter: Brett (BRETT), BOOK OF MEME (BOME) and Cat in a dogs world (MEW). 

BRETT generated the highest returns since its launch with a gain of 7727.6%, closely followed by dogwifhat (WIF) with a gain of 2721.2% during the quarter. Notably, the memecoin narrative outperformed other crypto narratives by a significant margin.

memecoins

 

Compared to the second most profitable narrative, RWA, memecoins were 4.6 times more profitable, and their returns were 33.3 times higher than those of the Layer 2 narrative, which experienced the lowest gains in Q1.

The RWA narrative, which stands for “Real-World Assets“, returned 285.6% in Q1. Although it briefly held the title of the most profitable narrative in early February, memecoins and artificial intelligence-based (AI) tokens outperformed RWA in terms of returns. However, RWA managed to regain its position ahead of the AI narrative by the end of March. 

Notable winners in the RWA category included MANTRA (OM) and TokenFi (TOKEN), which posted quarter-to-date (QTD) returns of 1074.4% and 419.7% respectively. XDC Network (XDC) was the only RWA token to decline, falling 15.6% for the quarter.

Artificial intelligence closely followed RWA as the only other narrative to deliver three-digit returns, reaching 222.0% in Q1. All large-cap AI tokens experienced gains, with AIOZ Network (AIOZ) leading the pack at 480.2% and Fetch.ai (FET) following closely at 378.3%. 

Even the lowest gainer in the AI category, OriginTrail (TRAC), returned a respectable 74.9% during the quarter, indicating the overall interest in AI-related tokens.

Layer 1 Tokens Trail Behind

The decentralized finance (DeFi) narrative delivered moderate returns of 98.9% in the first quarter. In late February, DeFi returns were boosted by the Uniswap (UNI) fee switch proposal. DeFi tokens that performed well included Jupiter (JUP) with gains of 125.7%, Maker (MKR) with 121.2%, and The Graph (GRT) with 111.0% QTD.

In contrast, the Layer 1 (L1) narrative delivered relatively lower profitability with 70.0% returns in Q1 2024. While Solana (SOL) garnered attention as a popular memecoin chain, the top-performing large L1 cryptocurrencies were Toncoin (TON) and Bitcoin Cash (BCH) with gains of 131.2% and 130.5%, respectively. 

Bitcoin (BTC) achieved a 65.1% gain, reaching new all-time highs, while Ethereum (ETH) posted 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.

Memecoins

As of this writing, Dogecoin (DOGE), the largest memecoin by market capitalization, is trading at $0.1745. Over the past 24 hours, it has experienced a price correction of nearly 7%. In the last month, Dogecoin has shown limited bullish momentum, with a marginal gain of only 0.7% during this time period.

Featured image from Shutterstock, chart from TradingView.com

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Grayscale Drops Bombshell Report: Crypto Bull Run Progresses To ‘Middle’ Phase, Future Outlook Detailed

The cryptocurrency market has witnessed a significant surge after a prolonged bear market and the intensified crypto winter caused by the collapse of crypto exchanges and firms during 2022 and part of 2023. 

Notably, Bitcoin and other major cryptocurrencies have experienced substantial price surges, accompanied by renewed interest from institutional investors entering the market through recently approved spot Bitcoin exchange-traded funds (ETFs). 

Adding to the industry’s positive outlook, asset manager and Bitcoin ETF issuer, Grayscale, believes that the current state of the market indicates that the industry is in the “middle” stages of a crypto bull run. 

Grayscale recently released a comprehensive report detailing their key findings and insights into what lies ahead. A closer analysis of the report by market expert Miles Deutscher sheds light on the factors contributing to this assessment.

On-Chain Metrics And Institutional Demand

Grayscale’s report starts by highlighting several key signals indicating that the market is currently in the middle of a bull run. These include Bitcoin’s price surpassing its all-time high before the Halving event, the total crypto market cap reaching its previous peak, and the growing attention from traditional finance (TradFi) towards meme coins.

To understand how long this rally might sustain, Grayscale emphasizes two specific price drivers: spot Bitcoin ETF inflows and strong on-chain fundamentals.

Grayscale notes that nearly $12 billion has flowed into Bitcoin ETFs in just three months, indicating significant “pent-up” retail demand. Moreover, ETF inflows have consistently exceeded BTC issuance, creating upward price pressure due to the demand-supply imbalance.

Grayscale’s research focuses on three critical on-chain metrics: stablecoin inflows, decentralized finance (DeFi) total value locked (TVL), and BTC outflows from exchanges.

According to Deutscher, the increase in stablecoin supply on centralized exchanges (CEXs) and decentralized exchanges (DEXs) by approximately 6% between February and March suggests enhanced liquidity, making more capital readily available for trading.

Crypto

Furthermore, for the analyst, the doubling of the total value locked into DeFi since 2023 represents growing user engagement, increased liquidity, and improved user experience within the DeFi ecosystem.

The outflows from exchanges, which currently account for about 12% of BTC’s circulating supply (the lowest in five years), indicate rising investor confidence in BTC’s value and a preference for holding rather than selling.

Based on these catalysts, Grayscale asserts that the market is in the “mid-phase” of the bull run, likening it to the “5th inning” in baseball. 

Promising Outlook For Crypto Industry

Several key metrics support Grayscale’s analysis, including the Net Unrealized Profit/Loss (NUPL) ratio, which indicates that investors who bought BTC at lower prices continue to hold despite rising prices. 

According to Deutscher, the Market Value Realized Value (MVRV) Z-Score, currently at 3, implies that there is still room for growth in this cycle. Additionally, the ColinTalksCrypto Bitcoin Bull Run Index (CBBI), which integrates multiple ratios, currently stands at 79/100, suggesting that the market is approaching historical cycle peaks with some upward momentum remaining. 

Furthermore, retail interest has yet to fully return this cycle, as evidenced by lower cryptocurrency YouTube subscription rates and reduced Google Trends interest for “crypto” compared to the previous cycle.

Crypto

Ultimately, Grayscale retains a “cautiously optimistic” stance regarding the future of this bull cycle, given the promising signals and analysis outlined in their report.

Crypto

Featured image from Shutterstock, chart from TradingView.com 

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United States Dominates Global Crypto Market With Massive $9.3 Billion In Profits

In a recent report by market intelligence firm Chainalysis, it has been revealed that global crypto gains in 2023 amounted to a staggering $37.6 billion. This profit surge reflects improved asset prices and market sentiment compared to 2022. 

Although this figure falls short of the $159.7 billion gains witnessed during the 2021 bull market, it signifies a significant recovery from the estimated losses of $127.1 billion experienced in 2022.

Sharp Surge In Crypto Gains

The report suggests that despite similar growth rates in crypto asset prices in 2021 and 2023, the total gains for the latter year were lower. According to Chainalysis, this discrepancy could potentially be attributed to investors’ decreased inclination to convert their crypto assets into cash. 

The analysis further suggests that investors in 2023 seem to have anticipated further price increases, as crypto asset prices did not exceed previous all-time highs (ATHs) during the year, unlike in 2021.

Crypto

Cryptocurrency gains remained relatively consistent throughout 2023, except for two consecutive months of losses in August and September, as seen in the image above. However, gains surged sharply thereafter, with November and December eclipsing all previous months.

United States Leads

Leading the pack in cryptocurrency gains was the United States, with an estimated $9.36 billion in profits in 2023. The United Kingdom secured the second position with an estimated $1.39 billion in crypto gains. 

Notably, several upper and lower-middle-income countries, particularly in Asia, such as Vietnam, China, Indonesia, and India, achieved significant gains, each surpassing $1 billion and ranking within the top six countries worldwide. 

Crypto

Chainalysis had previously observed strong cryptocurrency adoption in these income categories, particularly in “lower-middle-income” countries, which demonstrated resilience even during the recent bear market. The gains estimates indicate that investors in these countries have reaped substantial benefits from embracing the asset class.

Ultimately, the Chainalysis report suggests that the positive trends observed in 2023 have carried over into 2024, with prominent cryptocurrencies such as Bitcoin (BTC) hitting all-time highs of $73,700 following the approval of Bitcoin exchange-traded funds (ETFs) and increased institutional adoption. 

If these trends persist, the firm believes that it is conceivable that gains in 2024 will align more closely with those witnessed in 2021. 

Crypto

As of this writing, the total crypto market cap valuation stands at $2.5 trillion, a sharp drop of over 4% in the last 24 hours alone, and down from Thursday’s two-year high of $2.7 trillion. Bitcoin, on the other hand, is trading at $68,400 after dropping as low as $65,500 but has quickly regained its current trading price, limiting losses to 4% over the past 24 hours.

Featured image from Shutterstock, chart from TradingView.com 

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Crypto Market’s ‘Monster Cycle’: $7.5 Trillion Market Value By 2025, Bitcoin Targets $150,000

In a recent Bloomberg report, it has been revealed that the market value of crypto assets is expected to witness a remarkable surge, nearly tripling to $7.5 trillion by 2025. 

Wall Street Firm Predicts “Monster Of A Crypto Cycle”

The next few years are likely to usher in a “monster of a crypto cycle,” according to Wall Street research firm Bernstein. In addition, Bernstein analysts have an “outperform” rating on the stock as they initiate coverage of online brokerage Robinhood Markets. 

Analyst Gautam Chhugani believes investors should take advantage of the opportunity to ride the “crypto comeback arc,” envisioning a “ninefold increase” in Robinhood’s crypto trading volume over the next two years.

Chhugani expressed his confidence in Robinhood’s prospects, stating that now is the opportune time to enter the market with an 18-24 month window to capitalize on the crypto resurgence. Assigning a price target of $30 to the stock, Chhugani’s price target is currently the highest among analysts tracked by Bloomberg.

Following the publication of positive February operating data, which included increases in assets under custody and surging trade volume, Robinhood shares surged as much as 12% in New York trading, reaching the highest intraday level since December 2021. 

So far this year, the stock has gained over 40%. However, Wall Street remains cautious about its outlook, with six analysts rating the stock as a buy, ten suggesting a hold, and three recommending selling.

With the anticipated growth of crypto assets from $2.6 trillion to $7.5 trillion, the largest digital currency, Bitcoin, is set to become a $3 trillion asset by 2025. According to Chhugani, this surge is expected to be fueled by the “unprecedented success” of exchange-traded funds (ETFs) tied to the cryptocurrency. 

Additionally, Chhugani predicts that Bitcoin will reach a high of $150,000 next year. He emphasized the ongoing institutional adoption of cryptocurrencies and expressed expectations for the continued success of the Bitcoin ETF and the potential launch of an Ethereum ETF within the next 12 months.

Robinhood Positioned For Success

In the context of Robinhood, Chhugani highlighted the company’s “full suite crypto offering within a regulated broker platform,” which positions it favorably. Bloomberg notes that traditional broker platforms, such as Charles Schwab Corp., have been more hesitant in offering cryptocurrency services.

Summing up his bullish stance, Chhugani stated: 

In short, we are bullish on crypto, and we believe Robinhood’s crypto business resurgence will restore its fortunes with investors.

The projected exponential growth of the cryptocurrency market and the optimistic outlook for Robinhood’s crypto business have captured the attention of market observers. With the increasing mainstream acceptance and institutional adoption of digital assets, the next few years hold significant potential for investors and market participants alike.

Crypto

Featured image from Shutterstock, chart from TradingView.com

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Crypto Sentiment Index Stays Bullish Despite Corrections, Report Reveals Positive Outlook

In a recent blog post, ETC Group’s Head of Research, Andre Dragosh, provided a comprehensive analysis of the current state of the crypto market. Dragosh’s findings shed light on the market’s performance dynamics, profit-taking activity, and derivative trends.

High-Risk Appetite In Crypto Market

According to Dragosh’s analysis, crypto assets showcased their resilience as they outperformed traditional assets like equities, supported by a significant repricing in monetary policy expectations and short futures liquidations at the beginning of last week. 

However, this outperformance encountered some limitations in the short term due to stronger-than-expected US jobs data, which began to dampen the recent rally. The US non-farm payroll growth and unemployment rate surpassed consensus estimates, leading to a reversal in US Treasury yields and a decrease in overall risk appetite across traditional financial markets.

Notably, altcoin outperformance gained momentum during the period, with Avalanche (AVAX) and Cardano (ADA) returning over 50% each. Among the top 10 crypto assets, Avalanche, Cardano, and Polkadot (DOT) stood out as the relative outperformers. 

According to Dragosh, this surge in altcoin outperformance compared to Bitcoin (BTC) indicates a “high-risk appetite” within the crypto market. On the other hand, on-chain data for Bitcoin suggests that investors are increasingly taking profits, evidenced by the rising number of coins in profit being sent to exchanges.

Crypto

ETC Group’s in-house Crypto Asset Sentiment Index remained relatively elevated compared to the previous week, indicating positive market sentiment. However, major reversals to the downside were observed in the Crypto Dispersion Index and the BTC 25-delta 1-month option skew. 

The Crypto Fear & Greed Index continued to reside in “Greed” territory, reflecting ongoing market optimism. Although ETC Group’s Cross Asset Risk Appetite (CARA) measure declined slightly, it remained in positive territory, signaling a decrease in risk appetite in traditional financial markets.

Performance dispersion among digital assets decreased compared to the previous week but remained relatively high. This implies that correlations among crypto assets have decreased, and investments are driven by coin-specific factors, highlighting the importance of diversification among digital assets.

Short-Term Holders Cash In

The market remains in a strong profit environment, with a significant percentage of BTC and ETH addresses in profit. According to Dragosh, profit-taking activity, particularly among short-term holders, has increased as Bitcoin approaches recent highs, leading to higher selling pressure. 

Long-term holders have also increased their transfers of profitable coins to exchanges, potentially hindering short-term price increases. However, it is worth noting that there is no evidence of older coins being spent, which would indicate a larger price correction.

On the other hand, aggregate open interest in BTC futures and perpetual remained stable, with notable futures short liquidations recorded. BTC option open interest saw a significant increase, accompanied by relative put-buying and an increase in the put-call open interest ratio. 

The 25-delta BTC option skews also increased, indicating higher demand for puts compared to calls. However, overall at-the-money (ATM) implied volatilities did not change significantly.

Crypto

At the time of writing, BTC has lost its $42,000 support line, trading at $41,600, down 5% in the last 24 hours.

Featured image from Shutterstock, chart from TradingView.com 

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Crypto Investor Buying Power Just Reached A 6-Month High, What This Means

For the crypto market to fully enter another epic bull run, investors must be willing to purchase digital assets in large quantities. After a long stretch of abysmal performance, it looks like crypto investors are finally starting to believe in the market as they begin to pool their buying power to enter back into the market.

Crypto Buying Power At 6-Month Highs

An interesting development reported by the on-chain data tracker Santiment is the accumulation of Tether’s USDT stablecoin by crypto investors. As Santiment points out, the total amount of USDT being held on exchanges saw a notable uptick recently.

The figure which takes into account the total USDT held across the top exchanges went from only 17.6% of the stablecoin’s circulating supply to a whopping 24.7%. This 7.1% jump represents the growing interest of investors to get back into the market which could be bullish for prices.

As always, the large whales led the charge in this accumulation trend. The top 10 largest wallets saw their combined holdings rise from $7.23 billion to more than $9.42 billion in the same timeframe.

Crypto buying power stable coins

Now, when investors start upping their stablecoin holdings, it signals a readiness to begin buying digital assets once more and also shows the current buying power. As the amount of USDT held on exchanges has crossed over to a 6-month high, it could point toward the start of the largest rally seen in the market in 2023.

The accumulation being spread across large and small wallets alike shows that this is not a localized sentiment. Rather, most investors are seeing genuine chances for an upside and are looking to harness some of those gains for themselves.

Crypto total market cap chart from Tradingview.com (Stablecoins USDT)

What To Expect

After accumulating a large tranche of stablecoins as illustrated in the Santiment report, crypto investors would often wait for a good time to deploy it. This is usually when the market experiences a notable crash, plunging the entire space into the red.

At this point, investors would be looking to get back into coins at a time when they look to be on discount. This is often when the market forms support and then prices begin to surge not too long afterward.

Mainly, these stablecoins will be deployed into the largest digital assets first such as Bitcoin (BTC) and Ethereum (ETH). Then once there are enough profits, investors will usually rotate into smaller cap coins, which is why altcoins tend to delay a bit in following Bitcoin’s recovery.

Such a scenario will likely see the price of Bitcoin rally toward $29,000 and then bring the crypto market cap above $1.1 trillion once more.