Crypto Investment Map: 9 Major Tracks and Sectors to Understand Cryptocurrency from Zero

Want to understand what the crypto world is? Simply put, the cryptocurrency universe is similar to the traditional stock market, divided into different investment sectors based on application scenarios and technological features. As the blockchain ecosystem matures, beyond mainstream currencies like BTC and ETH, several hot tracks have emerged, including DeFi, Solana ecosystem, MEMES, GameFi, Telegram ecosystem, RWA, AI cryptocurrencies, and more. Each sector has its own risk characteristics and profit potential; understanding these differences is crucial for investment decisions.

Which crypto sector will be the most profitable in 2024?

According to the latest market statistics, MEMES (meme coins) have performed the most dazzlingly so far in 2024, with an average return of an astonishing 2405.1%. How exaggerated is this number? It is 8.6 times the RWA track in second place and 542.5 times the lowest-yielding DeFi sector.

Among the top ten meme coins by market cap, PEPE, Dogwifhat, FLOKI, BRETT, and others have sparked a market frenzy. Recently, the popularity of “Black Myth: Wukong” has reignited the meme coin rally, with related project $WuKong on Solana surging over 99999% in 24 hours. Some savvy investors have made a profit of $350,000 in just 5 hours.

The reason meme coins continue to attract speculative capital is their high volatility, rapid growth, and close ties to community culture and hot events. However, investors must be cautious of their high risk; such assets are not suitable for long-term holding.

Deep analysis of the nine major crypto sectors

1. MEMES: Short-term explosive culture phenomenon

Memes originate from biologist Richard Dawkins’ theory in 1970, referring to the mechanism of idea transmission. In the crypto realm, meme coins are those that go viral and skyrocket due to cultural resonance.

Take Dogecoin DOGE as an example. It was originally created to satirize the chaos of “anyone can issue a cryptocurrency,” but it soared thanks to Musk’s support. Shiba Inu SHIB and other emerging projects follow the same logic.

Why are they suitable for small capital short-term trading? Meme coins’ volatility far exceeds functional currencies. The investment cycle is short, but the risk is extremely high. Large single investments are not recommended. According to data from the first half of 2024, the top ten meme coins have an average return of 2405%, with DOGE still being the most liquid.

Project token total market cap: 44 billion

2. RWA: Long-term growth with definite opportunities

RWA (Real World Assets) tokenizes physical assets, solving the problem of high fragmentation and illiquidity. Common issues like multi-generational land inheritance in Taiwan can be easily converted into tradable tokens under the RWA framework.

In June 2023, a Rolex watch was successfully collateralized for a loan of 400,000 TWD through tokenization. Extending from watches to antiques, fine wines, real estate, and more, the application prospects are limitless.

The full RWA process includes: setting token issuance quantity → choosing issuance platform → establishing smart contracts → generating tokens → asset trust. This mechanism, which focuses solely on assets rather than individuals, has huge market potential. It is predicted that by 2030, the global RWA scale will reach 16 trillion USD, about 10% of global GDP.

The world’s largest asset management firm BlackRock has launched a tokenized fund BUIDL, taking the lead. Although RWA will not experience explosive growth (since real assets have fixed value), its growth trend is irreversible, making it suitable for long-term crypto investment allocation.

Project token total market cap: 7 billion

3. AI cryptocurrencies: Frontline of new technological dividends

AI cryptocurrencies combine artificial intelligence technology with blockchain, relying heavily on AI in design and operation to improve trading efficiency, enhance security, and realize decentralized smart contracts.

SingularityNET (AGIX) is a typical example, establishing a decentralized AI economy where users can create, trade, and authorize various AI services. Applications include medical treatment comparisons, financial fraud detection, artistic creativity, and more.

Market expectations for new tech applications, along with continuous capital injection, cause many AI coins with practical and scientific research backgrounds to show astonishing gains. In the first half of 2024, the AI sector ranked third in returns, just behind MEMES and RWA. Representative projects include NEAR, FET, AGI, etc.

Project token total market cap: 25.9 billion

4. DePIN: Decentralized Physical Infrastructure Networks

DePIN (Decentralized Physical Infrastructure Network) uses blockchain technology to connect physical assets and infrastructure in a decentralized manner, creating a safer, more transparent, and efficient infrastructure management model.

JasmyCoin (JASMY) is Japan’s first legally registered IoT platform, combining blockchain and IoT facilities, allowing users to control their data and share it transparently with third parties. As digital privacy protection becomes more important and IoT and big data applications look promising, such functional projects often show remarkable increases.

Project token total market cap: 20.3 billion

5. GameFi: The next frontier of virtual economy

GameFi (gamified finance) integrates DeFi and NFTs, giving game items rarity and ownership. Traditional game currencies are prone to devaluation due to centralized issuance, but blockchain technology makes game assets safer and more valuable.

Game developers innovate to retain players longer. For example, tokenizing items as NFTs allows players to mortgage them on DeFi platforms for crypto, making the game both fun and profitable.

Furthermore, different games are breaking down barriers to build a “game metaverse”—NFTs earned in one game can be exchanged in another. Players contribute and earn rewards in their preferred domains. This liquidity boost can push up product prices and attract more investors and institutions, forming a complete industry chain.

Although prospects are broad, GameFi has not yet formed a unified mainstream. In the first half of 2024, many high-market-cap projects (like GALA) had negative returns, so large investments are not recommended.

Project token total market cap: 14 billion

6. Telegram ecosystem: Web3 transformation of instant messaging

Telegram, one of the world’s largest instant messaging platforms, emphasizes its self-destruct message feature, especially relevant in the AI era. The platform’s @wallet function is similar to Line Wallet, supporting USDT, Bitcoin, and TON coin transfers.

What is TON? As the underlying public chain derivative of Telegram, TON is like Telegram’s infrastructure token. Besides transfer functions, it has smart contract capabilities similar to Ethereum, allowing traceability of transaction sources and enhancing security. With many global users, though less known in Taiwan, its development potential is significant.

Project token total market cap: 700 million

7. Solana ecosystem: The real challenge to Ethereum’s dominance

Founded just four years ago, Solana aims to solve Ethereum’s slow transaction speeds and high fees caused by congestion. It adopts an innovative Proof of History (PoH) mechanism instead of Ethereum’s PoS, greatly reducing transaction costs and times.

Even during the FTX crisis, Solana’s user base did not decline significantly, proving it has become more than just an investment tool—an essential infrastructure for many applications. Visa, the world’s largest credit card company, has launched Solana payment features using USDC for settlement, indicating Solana may become a common payment method in the future.

Once its usage scope broadens enough, Solana could become a universal payment tool like the US dollar—people would only exchange other currencies in specific scenarios. From this perspective, Solana’s application prospects are immense.

Project token total market cap: 6.8 billion

8. DeFi: The original intention of cryptocurrencies

The initial purpose of cryptocurrencies was to bypass government regulation of banking systems. Traditional banks have issues like currency exchange limits, high fees, slow transactions, and frozen accounts. With technological development, these constraints will limit innovation.

DeFi allows funds to transfer directly via blockchain without bank intermediaries. For cross-border transactions, traditional methods involve multiple banks, each charging fees and potentially freezing funds; blockchain eliminates these barriers.

From an investment perspective, Bitcoin only holds an early advantage, but Ethereum’s smart contracts and Solana’s high performance have more practical applications. Investors should not only focus on Bitcoin but also track the most capital-favored sectors.

In the future, cryptocurrencies may be used like fiat money—people might buy Taylor Swift concert tickets with ETH rather than just speculate. The attributes and functions of various coins are crucial for investment.

Despite the huge potential of DeFi, it faces resistance from traditional finance and competes for market share. In the first half of 2024, traditional stock markets performed well, with less capital inflow into DeFi, and overall returns lag behind other sectors.

Project token total market cap: 74 billion

9. Other sectors: Cyclical opportunities in sector rotation

Besides the popular sectors above, many other cryptocurrencies are worth attention. Sector rotation is a common phenomenon in the crypto world, driven by economic cycles, policy changes, and market hotspots, leading to the periodic rise of different projects.

Historical reference:

• H2 2020: Bitcoin became the market focus, with institutional funds pouring in
• Early 2021: Institutional interest in DeFi surged, capital flowed into Ethereum, Uniswap, Aave, and others
• Mid to late 2021: NFT market exploded, with Bored Ape Yacht Club, Axie Infinity, and others gaining popularity; NFT platforms on Solana and Ethereum attracted great attention
• Late 2022 to early 2023: Layer 2 tracks (Arbitrum, Optimism) performed well, Layer 1 relatively weak
• Recently: Spot ETF launches and rate cut expectations drove Bitcoin rebound; Layer 1 blockchains regained attention

All these rotations are driven by technological advances, market trends, and policy environments.

Why is it important to follow crypto tracks and sector differentiation?

As ecosystems improve, the crypto market no longer moves in unison. Each currency has its own investor base, similar to how, during a stock bull run, people ask “which sectors are rising the most?” In the future, investors will ask “which tracks are performing the best?”

Three main factors driving sector differences:

Factor 1: Fundamentals — Different sectors are affected by macro environments to varying degrees. In early bull markets, tech stocks lead; in the late stage of economic recovery, energy stocks strengthen. Similarly, in crypto, DeFi, NFT, meme coins, AI, IoT projects fluctuate with market cycles.

Factor 2: Risk diversification — Understanding sector rotation allows more flexible risk management, rather than concentrating all funds in one sector. Analyzing historical performance of various assets helps predict which sectors may bring potential gains.

Factor 3: Avoid operational risks — Knowing market cycles helps avoid “buying at the top and selling at the bottom.” Studying the regularity of hot and cold sectors enables more scientific and rational wealth allocation.

How to check crypto sector data?

Investors can use the following online platforms and tools to access detailed sector data, price trends, trading volumes, and other key indicators for better decision-making:

1. CoinMarketCap
Provides global crypto market data (prices, market caps, trading volumes) with categories like DeFi, NFT, AI cryptocurrencies, etc.

2. CoinGecko
Similar to CoinMarketCap, offering detailed market data and categorized sector statistics.

3. Messari
Provides in-depth blockchain research reports, market overviews, end-to-end financial data, and sector-based project performance analysis.

Crypto investors should leverage these resources, regularly monitor sector information, understand the cyclical features of different tracks, and become long-term market winners. Remember: in today’s increasingly complex crypto environment, understanding sector differentiation is key to gaining investment主动权.