AI and Memecoins Delivered Highest Gains in 2024

Week of January 7-13, 2025

The Block has revealed that memecoins and Artificial Intelligence (AI) coins delivered the highest returns in 2024—alongside the Layer 1 blockchain group—which also posted strong returns. The only two categories that saw negative returns last year were Layer 2 blockchains and GameFi.

The total market value of memecoins fell over 30% in December 2024. It saw a peak of $137 billion on December 9, 2024, before reaching a low of $92.67 billion on December 23, 2024.

Grayscale added AI, DeFi, and Solana ecosystem coins to its list of notable coins to watch in the first quarter of this year. They also noted that smart contract based coins like Ether (ETH), Solana (SOL), Avalanche (AVAX), and Sui (SUI) show strong growth potential.

Bitcoin's (BTC) hashrate reached an all-time high of over 1,000 EH/s on January 3, 2025, nearly double compared to the same period last year. A high hashrate indicates an increase in miners, which improves network security.

Data from Farside Investors show that net inflows into the Spot Ethereum ETF surpassed $2.6 billion in December 2024. According to CoinShares, net inflows had been consistent for 8 consecutive weeks through November and December 2024. A Bybit report also stated that since November 2024, ETH has outperformed BTC in both spot and derivative markets.

MicroStrategy plans to raise an additional $2 billion through perpetual preferred stock to purchase more Bitcoin. The offering is expected to take place in the first quarter of 2025. Its most recent purchase was 2,138 BTC, valued at $209 million, at an average price of $97,837 per BTC.

The market value of Tether (USDT) decreased by over 1.2%, from $138.8 billion to around $137 billion, following the full enforcement of the European Union's MiCA regulation on December 30, 2024. This regulation requires major stablecoin issuers to hold at least 60% of their reserves in banks. However, Tether clarified that the impact on them was limited.

Technical Analysis

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Bitcoin (BTC)

Bitcoin (BTC) had been stagnant during the extended holiday period, before experiencing a surge of buying activity after the New Year celebrations started in 2025, pushing the price to test the resistance level of $100,000. If it breaks through this level, the trend could turn positive, and potentially testing the previous high of $108,000. However, if it fails to break through, the price may drop further to test the support level at $90,500. On the other hand, the Relative Strength Index (RSI), shows a potential new high, which could provide the much needed momentum for a positive reversal.

Support: 3,100,000 THB / 90,500 USD
Resistance: 3,700,000 THB / 108,000 USD

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Ethereum (ETH)

Ethereum (ETH) has shown remarkable growth and has the potential to test the resistance level at $4,100. If it surpasses this level, it could rise to test its all-time high of $4,900. A good buying opportunity may arise at the support level of $3,500. However, if this support fails, ETH might drop to test the previous low of $3,300.

Support: 112,000 THB / 3,300 USD
Resistance: 140,000 THB / 4,100 USD

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Stellar (XLM)

Stellar (XLM) has delivered 36.33% returns over the past week, with a positive trend reversal after a period of prolonged calm. The support level at $0.3215 serves as a possible stop-loss point. The target is to test the previous resistance level at $0.6080.

Support: 11 THB / 0.3215 USD
Resistance: 21 THB / 0.6080 USD

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SushiSwap (SUSHI)

SushiSwap (SUSHI) has delivered 33.86% returns over the past week, signaling a recovery and potential uptrend. The support level could be set at the previous low of $1.317. The first resistance target to test is at $2.312. If this level is surpassed, it could revisit the previous high.

Support: 44 THB / 1.317 USD
Resistance: 80 THB / 2.312 USD

Investment Trends

Bitcoin (BTC) has seen consistent selling pressure from the ETFs throughout late 2024, leading to stagnant prices. However, last Friday, buying momentum recovered, and returned through ETFs once again. Meanwhile, Ether (ETH) and altcoins have started to perform well too.

There are expectations that altcoins may outperform the market as the Bitcoin Dominance Index continues to decline, and the Total3 Index starts to recover. Notable high-potential sectors include DeFi and Layer 1 blockchain projects.

This week, the results of the previous Federal Open Market Committee (FOMC) meeting will be revealed, with attention on the views of each committee member regarding the economic outlook, which could impact future meetings. Additionally, on Friday, January 10, the Non-Farm Payroll figures will be released, with an estimated 150,000 new jobs, a decrease from the previous month. The unemployment rate is expected to remain at 4.2%, the same as last month.

If the economic data comes in worse than expected, it will likely have a positive impact on cryptocurrencies, as the Federal Reserve may need to continue lowering interest rates. However, if the data is better than expected, it could negatively pressure the cryptocurrency market.

Investment Strategy: Focus on accumulating Ether (ETH) due to continuous inflows into ETFs, as well as Layer 1 blockchain coins with strong fundamentals like Solana (SOL) and Binance Coin (BNB), which may possibly reach new highs, following in the footsteps of Sui (SUI).

For altcoins, it is important to selectively target the projects with strong fundamentals, as capital inflows into altcoins are still in progress. Consider AI and DeFi coins, especially those in the Liquid Staking group, which may benefit from the rising price of Ether (ETH).

References

Disclaimers

*Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
**Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice.

Topics: Crypto Weekly

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