Bitcoin Outperforms All Crypto Sectors in 2024: Delphi Digital

Bitcoin has proven to be the safest haven in cryptocurrency markets throughout 2024. BTC has outperformed all specialized sectors according to new data from research platform Delphi Digital.

While Bitcoin price has experienced its own volatility this year, every other major crypto category has delivered substantially worse returns for investors.

The analysis from Delphi Digital shows sector-wide underperformance compared to Bitcoin.

The data reveals particularly steep losses in specialized categories, including artificial intelligence projects, blockchain frameworks, agent-based protocols, meme coins, and gaming infrastructure tokens.

AI and blockchain frameworks face steepest declines

The AI frameworks sector has experienced the most severe downturn among all crypto categories, with an average decline of 84.05% since December 31, 2023.

Projects like VWFU and ZEREBRO have been particularly hard hit, dropping 94.53% and 95.32% respectively. Even more established AI blockchain projects like ARC have suffered, falling 48.37% during this period.

The data shows a clear pattern of investor retreat from speculative AI-blockchain integrations. GRIFFAIN plummeted 86.7%, while SPORE lost 93.6% of its value. HAT fell 91.78%, and VIRTUAL dropped 74.24%.

Only one project in the AI frameworks category, GAME, managed to limit its losses to less than 90%, though it still declined by 91.17%. This sector-wide collapse indicates a fundamental reassessment of the immediate practical value of AI-blockchain combinations rather than isolated project failures.

Agent-based protocols followed closely behind with an average drop of 70.27%. This category, which includes autonomous blockchain agents designed to perform specific tasks, saw projects like LUNA plunge 90.59% and GOAT fall 83.26%.

Bitcoin leads as meme coins and gaming tokens struggle

Meme coin traders have faced a brutal market environment this year, with the sector declining an average of 51.74% since December 2023. Popular meme tokens like PEPE plunged 60.64%, while DOGE dropped 33.92%. The worst performer in this category was WIF, which crashed 70.36% from its year-end value.

Several other memecoins faced similar fates, with BONK falling 56.74% and SHIB dropping 35.37% during this period. Even newer meme tokens that gained popularity in early 2024 failed to maintain their value, suggesting that the speculative memecoin boom that characterized parts of 2023 has significantly cooled.

Gaming infrastructure tokens fared no better, recording an average decline of 51.54% across the sector.

Popular gaming-related tokens like MAGIC fell 51.8%, while GALA dropped 45.15%. The heaviest losses in this category were concentrated in projects like MON (-65.79%), YGG (-55.52%), and MCCA (-55.52%).

The data shows that tokens associated with metaverse and gaming platforms have struggled to maintain investor interest throughout 2024.

GMT declined 61.47%, MANTA fell 58.36%, and MATIC lost 39.83% of its value. Even gaming tokens with strong user bases and established ecosystems couldn’t escape the sector-wide sell-off.

ETH, SOL, and AI DeFi sectors show relative resilience

The Ethereum DeFi sector showed somewhat better performance than the hardest-hit categories, though still recording an average decline of 35.2% since December 2023. Analysis from Delphi Digital shows that established DeFi projects on Ethereum faced less severe selling pressure than experimental sectors.

Within this category, POS fell 53.44% and SNX dropped 53.84%, marking the steepest declines. More established DeFi protocols like AAVE (-32.29%), LINK (-23.71%), and MKR (-3.93%) demonstrated greater price stability.

The relative outperformance of MKR suggests investors might be favoring DeFi projects with longer track records and proven revenue models during market downturns.

Solana’s DeFi ecosystem showed similar patterns with an average sector decline of 29.29%. Projects like PYTH fell 40.68% and PAY dropped 40.38%, while JTO and JUP limited their losses to 24.71% and 16.56% respectively.

The AI and DeFi combination sector posted an average decline of 42.48%, positioning it in the middle range of sector performance. Tokens like HONEY (-57.06%) and FET (-47.05%) saw substantial losses, while TAO managed to limit its decline to just 8.09%, making it one of the best-performing tokens across all categories analyzed.

Bitcoin outperformed all major crypto sectors in 2024, solidifying its status as the market’s safest asset. Meanwhile, AI and blockchain framework projects suffered the heaviest losses, reflecting investor skepticism toward speculative narratives.