The first quarter of 2024 has delivered a dynamic and explosive performance across various crypto narratives, with one clear winner emerging from the pack: memecoins. While several sectors showed strong momentum, the returns were anything but evenly distributed. From explosive gains in niche communities to steady growth in real-world asset (RWA) tokenization, the market has spoken — and humor, hype, and community-driven momentum are ruling the roost.
This article breaks down the top-performing crypto narratives of Q1 2024 based on average price returns of the top 10 tokens in each category, revealing which sectors delivered outsized gains and which lagged behind.
Memecoins: The Unstoppable Force of Q1 2024
👉 Discover how meme-driven tokens turned viral energy into massive returns this quarter.
Memecoins dominated Q1 2024 with an average return of 1312.6%, making them by far the most profitable crypto narrative. What began as internet jokes has evolved into a speculative powerhouse, fueled by social virality, celebrity endorsements, and decentralized community enthusiasm.
Three of the top 10 largest memecoins by market cap at quarter-end were launched around March 2024:
- Brett (BRETT)
- BOOK OF MEME (BOME)
- cat in a dogs world (MEW)
These newcomers contributed significantly to the sector’s explosive growth, demonstrating how quickly new projects can capture market attention in today’s environment.
Among all memecoins, BRETT delivered the highest return at 7727.6% compared to its initial offering price. Following closely was Dogwifhat (WIF), which surged 2721.2% quarter-to-date (QTD) after going viral and helping reignite mainstream interest in the memecoin trend.
To put this into perspective:
- Memecoin returns were 4.6x higher than the second-best narrative (RWA).
- They outperformed the weakest-performing narrative, Layer 2, by a staggering 33.3x.
This level of outperformance highlights not just investor appetite for high-risk, high-reward assets, but also the growing influence of social sentiment and decentralized branding in shaping market movements.
Real-World Assets (RWA): Quiet Strength Behind the Scenes
While memecoins grabbed headlines, Real-World Assets (RWA) quietly secured the second-highest return of 285.6% in Q1 2024.
RWA briefly led the pack in early February before being overtaken by memecoins and AI narratives. However, it reasserted dominance over AI by the end of March, signaling sustained institutional and retail confidence in asset tokenization.
Among major RWA tokens:
- MANTRA (OM) led with a massive +1074.4% gain.
- TokenFi (TOKEN) followed with +419.7%.
- Only XDC Network (XDC) posted a loss, declining 15.6%.
The strong performance of OM and TOKEN reflects increasing traction in blockchain-based financial infrastructure, including tokenized securities, real estate, and credit instruments. As traditional finance explores on-chain solutions, RWA continues to build foundational value beyond speculation.
Artificial Intelligence (AI) Tokens: Steady Growth with Broad Participation
Artificial intelligence remained a key theme in Q1, delivering a solid 222.0% average return — the only other narrative besides memecoins and RWA to achieve triple-digit growth.
Unlike memecoins, where returns were concentrated in a few runaway winners, all major AI tokens posted gains, indicating broad-based strength across the ecosystem.
Top performers included:
- AIOZ Network (AIOZ): +480.2%
- Fetch.ai (FET): +378.3%
- Even the lowest performer, OriginTrail (TRAC), still gained 74.9%
This uniform growth suggests that investor interest isn’t limited to hype cycles but is rooted in real developments — such as AI-agent integration, decentralized compute networks, and data validation protocols — that align blockchain with next-generation tech trends.
DeFi & DePIN: Moderate Gains Amid Renewed Activity
DeFi: Revival at Quarter-End
The DeFi narrative returned 98.9% in Q1, regaining momentum in the final days of the quarter after a temporary dip behind DePIN.
A key catalyst was the Uniswap (UNI) fee switch proposal, which reignited community engagement and boosted sentiment around decentralized exchanges.
Top-performing large-cap DeFi tokens:
- Ribbon Finance (RBN): +430.8% — surged after transitioning to Aevo and launching its token.
- Jupiter (JUP): +125.7%
- Maker (MKR): +121.2%
- The Graph (GRT): +111.0%
These gains reflect renewed confidence in yield-generating protocols and infrastructure as Ethereum’s ecosystem evolves post-upgrades.
DePIN: From Losses to Late Recovery
DePIN started Q1 in negative territory but finished strong with an 81.0% average return.
Leaders in the space:
- Arweave (AR): +292.5%
- Livepeer (LPT): +133.7%
- Theta Network (THETA): +124.5%
However, not all projects thrived — Helium (HNT) was the only major DePIN token to decline (–10.5%), highlighting ongoing challenges in decentralized wireless network adoption.
Still, the rebound underscores growing recognition of decentralized physical infrastructure as a viable model for distributed computing, storage, and connectivity.
Lagging Narratives: Layer 1, Gaming, and Layer 2
Despite overall bullish conditions, some core blockchain sectors underperformed.
Layer 1 (L1): Modest Gains Despite Strong Fundamentals
L1 blockchains returned just 70.0%, trailing most other narratives.
Notable performances:
- Toncoin (TON): +131.2%
- Bitcoin Cash (BCH): +130.5%
- Solana (SOL): +91.9% — benefited from its role as a leading memecoin platform.
- Bitcoin (BTC): +65.1% — reached new all-time highs.
- Ethereum (ETH): +53.9% — lagged despite progress on spot ETF applications.
While fundamentals remain strong, L1s were overshadowed by more speculative plays this quarter.
GameFi: Matching L1 Returns at 64.4%
GameFi saw moderate growth with a 64.4% return, aligning closely with L1 performance.
Top gainers:
- Echelon Prime (PRIME): +124.0%
- Gala (GALA): +123.0%
- Ronin (RON): +112.3%
Renewed interest in play-to-earn models and improved game design may signal a slow recovery for blockchain gaming after years of stagnation.
Layer 2: The Weakest Link at Just 39.5%
👉 See why some Layer 2 projects struggled while others broke out despite market headwinds.
Layer 2 solutions were the poorest performers in Q1 with only a 39.5% average return.
Established Ethereum L2s fared worst:
- Arbitrum (ARB): +5.6%
- Polygon (MATIC): +1.2%
- Optimism (OP): –1.2%
In contrast, non-EVM-aligned or hybrid chains like Stacks (STX) (+142.5%) and Mantle (MNT) (+95.8%) showed resilience, suggesting that innovation outside traditional rollup frameworks may be gaining favor.
Frequently Asked Questions
Q: Why did memecoins outperform all other crypto narratives in Q1 2024?
A: Memecoins benefited from viral social media trends, low entry barriers, and strong community coordination. Projects like WIF and BRETT leveraged internet culture to drive rapid price appreciation, often independent of traditional fundamentals.
Q: Is the RWA narrative sustainable beyond Q1 2024?
A: Yes — RWA combines blockchain efficiency with real economic value. As institutions adopt tokenized assets for bonds, real estate, and private credit, this sector is poised for long-term growth beyond speculative cycles.
Q: Why did Layer 2 tokens underperform despite growing Ethereum usage?
A: Many L2s launched during bull markets with high expectations. With limited immediate utility upgrades or revenue-sharing mechanisms, investor enthusiasm waned compared to flashier narratives like AI or memecoins.
Q: Can AI tokens maintain their momentum into Q2?
A: Continued integration of AI agents, decentralized compute layers, and cross-chain data protocols could sustain interest — especially if major platforms deliver tangible product milestones.
Q: Were there any surprises in GameFi or DePIN performance?
A: The recovery of DePIN from early losses was unexpected and likely tied to increased demand for decentralized storage and compute. In GameFi, PRIME’s surge reflected renewed trust in utility-driven gaming economies.
Q: What does this mean for investors moving forward?
A: Diversification remains key. While memecoins offer high returns, they come with extreme volatility. Combining exposure to emerging narratives like RWA and AI with stable L1/L2 fundamentals can balance risk and reward.