Crypto Investment Landscape Analysis: Understanding the Eight Mainstream Sectors of Cryptocurrency

The cryptocurrency market has developed to a relatively mature stage, with diversification levels comparable to traditional financial markets. Just as stock investors differentiate between tech stocks, financial stocks, and traditional industries, crypto investors also need to understand the characteristics of different sectors. From mainstream BTC and ETH to DeFi, Solana ecosystem, Meme coins, GameFi, IoT infrastructure, AI applications, and RWA asset tokenization, each field has its own distinct development logic and profit characteristics.

This article will take you deep into the main investment sectors in the crypto world and explain why smart investors are paying close attention to sector rotation phenomena.

2024 Profit King: How Meme Coins Reverse as Dark Horses?

According to the latest statistics, Meme coins achieved an astonishing average return of 2405.1% in the first half of 2024, far ahead of all other sectors. In comparison, the RWA sector’s return was only 1/8.6 of Meme coins, while DeFi’s return was less than 1/542.5 of Meme coins.

What is the logic behind this Meme craze? Meme coins are essentially cryptocurrencies that go viral through internet culture phenomena and collective recognition. Take DOGE as an example; it was initially just a satirical idea about the crypto bubble, but after Elon Musk publicly supported it, it became the most recognized Meme coin worldwide. Subsequently, coins like PEPE, Dogwifhat, FLOKI, and BRETT also emerged.

Recently, the popularity of “Black Myth: Wukong” has further fueled a new Meme frenzy. Data shows that $WuKong on the Solana blockchain surged over 99,999% within 24 hours, with some savvy investors making a profit of $350,000 in just 5 hours.

Why are Meme coins’ surges so astonishing? Because they combine high volatility, cultural resonance, and speculative enthusiasm. However, investors must be aware that these coins carry extremely high risks and are suitable for small-scale short-term trading rather than large long-term holdings.

Project token total market cap: 44 billion

On-Chain Real-World Assets: Long-term Imagination Space of the RWA Sector

RWA (Real-World Asset Tokenization) represents another application direction of blockchain technology. Imagine: a piece of land, due to inheritance issues, cannot clearly define ownership, making it untradeable in traditional models. But if it is split into millions of tokens, each representing a certain asset value, the problem is solved.

In June 2023, a Rolex watch was successfully collateralized for a loan of 400,000 TWD through asset tokenization. This model is not only suitable for movable assets (watches, antiques, fine wines) but also for real estate and other immovable assets.

The complete process of asset tokenization includes: setting the issuance amount, choosing the issuance platform, establishing smart contracts, generating tokens, and finally registering in trust. This mode of asset certification and diminished personal relationships is attracting top global institutions. Asset management giants like BlackRock have launched tokenized funds such as BUIDL to enter the RWA market.

It is estimated that by 2030, the total global RWA scale will reach 16 trillion USD, accounting for 10% of global GDP. Since real assets have inherent value support, the RWA sector will not experience Meme coin-like skyrocketing, but its growth momentum is steady. For investors seeking long-term stable returns, this is a sector worth allocating.

Project token total market cap: 7 billion

Technology Empowering Finance: Three Imaginings of AI Crypto

AI cryptocurrencies refer to new applications integrating artificial intelligence technology with blockchain. These projects heavily rely on AI to improve trading efficiency, enhance security, or realize smart contract functions.

Take SingularityNET (AGIX) as an example; it builds a decentralized AI economy, allowing users to create, trade, and license various AI services on the platform. Use cases include medical treatment analysis, financial fraud detection, and artistic creativity assistance.

In the first half of 2024, the AI sector’s crypto return ranked third, only behind Meme and RWA. This reflects the market’s strong expectations for the prospects of emerging technological applications. If you are confident in technological innovation and willing to accept moderate risks, projects like NEAR, FET, and AGI are good starting points for exploration.

Project token total market cap: 25.9 billion

Decentralized Physical Infrastructure: The Dream of DePIN in the Real Economy

DePIN (Decentralized Physical Infrastructure Networks) uses blockchain technology to connect physical assets and infrastructure in a decentralized manner, improving security and transparency.

JasmyCoin (JASMY) is a typical representative in this field. As Japan’s first legally registered IoT platform, Jasmy combines blockchain with IoT facilities, allowing users to autonomously control personal data and share it with third parties in a fully transparent environment. As global emphasis on digital privacy protection increases and the prospects of IoT and big data applications unfold, such projects are showing extraordinary growth.

Project token total market cap: 20.3 billion

Play and Earn: How GameFi Reshapes the Gaming Economy?

If game coins are the earliest application of cryptocurrencies, GameFi is the blockchain upgrade of game coins.

Traditional online games (like World of Warcraft, Lineage) issue currency controlled solely by the game company, which players cannot restrict, leading to rapid currency depreciation. GameFi changes all that—combining DeFi and NFTs, giving game items real rarity and ownership, making currency value easier to maintain.

Game companies further innovate by integrating NFT items into DeFi platforms for collateral, allowing players to exchange for cryptocurrencies. More aggressively, they break down barriers between different games, building a diversified gaming universe—NFTs earned in one game can be traded directly in another, enabling players to showcase their strengths and needs, with explosive growth in liquidity and value creation.

However, in the first half of 2024, GameFi performed mediocrely, with most top projects (like GALA) showing negative returns. Caution is advised, and large allocations should be avoided.

Project token total market cap: 14 billion

Financial Ambitions of Instant Messaging Ecosystem: Telegram and TON Coin

Telegram, as one of the world’s largest instant messaging platforms, features “self-destructing messages,” which is especially relevant in the AI era and has attracted attention in the Web3 space.

Telegram is not just a chat tool; it also supports payment functions. The @wallet feature within the platform is similar to LINE Pay, supporting transfers of USDT, Bitcoin, and TON. TON is Telegram’s underlying public chain native token, with many users worldwide (less known in Taiwan).

TON’s functions go far beyond ordinary payment coins—it has smart contract capabilities, similar to Ether, capable of tracking transaction sources to enhance security. You can think of it as the relationship between LINE POINTS and LINE, but with more diverse functions.

Project token total market cap: 700 million

Ethereum Challenger: Why is the Solana Ecosystem Gaining Attention?

Founded in 2020, Solana’s goal is clear—solve the speed and high transaction fee issues caused by Ethereum’s explosive application growth.

Solana adopts an innovative “Proof of History (PoH)” mechanism to replace Ethereum’s PoS, significantly reducing transaction costs and confirmation times. Even during the FTX incident, Solana’s ecosystem users continued to grow, indicating it has transcended being just an “investment tool” and become an indispensable application infrastructure.

More notably, Solana has been adopted by the world’s largest credit card company, Visa, and launched Solana payment features (settled with USDC). Once the scope of application broadens enough, enterprises might directly pay salaries in Solana, and consumers can spend without exchanging to other coins—similar to why the US dollar is globally accepted: it can buy the most things and is accepted everywhere.

Project token total market cap: 6.8 billion

Vision of Financial Democratization: Why Does DeFi Still Remain Infrastructure?

The original intention of cryptocurrencies was to bypass banks, which are heavily regulated by governments. Why are many so resistant? Reasons include: currency exchange limits, high transaction fees, slow transaction speeds, and government freeze risks. These constraints have become bottlenecks in the era of rapid technological development.

DeFi (Decentralized Finance) emerged—transactions no longer need bank intermediaries. Cross-border remittances traditionally involve 5 to 7 banks, each charging fees and risking freezing. Blockchain enables direct peer-to-peer transfers, without intermediaries or censorship.

This is not just a technological upgrade but also a shift of cryptocurrencies from investment assets to daily necessities. Users exchange USD for travel and shopping; in the future, they might exchange ETH for concert tickets. The differentiated attributes and functions of various coins are crucial for investment decisions.

Although the prospects of DeFi are vast, it faces the greatest resistance in competing for discourse with traditional finance. Plus, with the strong stock market in the first half of 2024 and limited capital inflow, DeFi’s returns lag behind other sectors.

Project token total market cap: 74 billion

Sector Rotation: Understanding the Core Logic of the Crypto Market

Besides Meme, RWA, and AI, there are other categories worth attention in the crypto world. But the core market phenomenon is “sector rotation”—economic cycles, policy environments, and market hotspots constantly change, causing different assets to take turns leading the rally at various stages.

In late 2020, Bitcoin became the focus, with institutional funds pouring in. Starting early 2021, DeFi suddenly exploded, with projects like Uniswap and Aave attracting capital. From mid-year to year’s end, the NFT market rose, with projects like Bored Ape Yacht Club and Axie Infinity sparking investment frenzy. From late 2022 to early 2023, Layer 2 tracks (Arbitrum, Optimism) led, while Layer 1 (ETH, SOL, AVAX) lagged. Recently, with spot ETF launches and rate cut expectations, Bitcoin has driven a strong rebound in Layer 1.

Behind these rotations are common factors: technological progress, market trends, and policy changes.

Why Must Investors Pay Attention to Sector Trends?

As the crypto space matures, different coins no longer “rise and fall together.” Just like stocks, when prices go up, people ask “which sectors are leading?” When investing in cryptocurrencies, you should ask “which sector is leading this wave?”

Three advantages of sector rotation:

First, different sectors are affected differently by fundamentals, policies, and technological advances. Tracking sector movements helps investors identify genuine market hotspots rather than noise.

Second, understanding sector rotation logic allows for more flexible risk diversification. By analyzing the historical performance of various assets, you can predict which sector might offer potential opportunities and avoid putting all chips into a single area.

Third, studying the patterns of market hot and cold cycles helps you avoid “buying at the high and selling at the low.” A scientific sector allocation strategy is the foundation for long-term steady growth.

How to Quickly Check Crypto Sector Data?

There are several professional platforms providing detailed crypto data and sector analysis:

CoinMarketCap — A global crypto market data aggregator offering prices, market caps, trading volumes, and other core indicators, with classifications such as DeFi, NFT, AI crypto.

Coingecko — Similar to CoinMarketCap, providing detailed market data and sector-specific statistics, with user-friendly features.

Messari — Focuses on in-depth blockchain research reports and market overviews, offering comprehensive financial data and sector-based project performance analysis.

Smart crypto investors should leverage these resources, regularly track sector information, understand sector cycles, and stay ahead in the long-term market competition.