Three sectors that could thrive as 2024 bull market warms up

Source Fxstreet
  • AI and meme coin sectors are on the grind, which one will sustain the gains the longest?
  • Layer 2 tokens are an interesting lot given their off-chain solutions and therefore utility.
  • Gaming tokens also have strong utility as users chase incentives through in-game earnings.

Barely seven weeks out, is the Bitcoin halving expected, an event that has historically kick started cycle bull markets. With this, traders and investors are on the hunt for projects to ride along with for their portfolio diversification schemes.

Also Read: DOGESHIB, PEPE, WIF soar as meme coins prove to be a global shelling point for speculative liquidity

Sectors showing potential ahead of 2024 bull market

In a post on X, the Shiba Ecosystem and Shibarium Tech marketing specialist, Lucie Sasnikova highlighted three sectors that could lead the oncoming bull market, citing Artificial Intelligence (AI), Layer 2 (L2), and gaming.

AI altcoins

AI altcoins displayed massive volatility around the Nvidia earnings report in February which trounced consensus. However, the technology firm continues to thrive, which could bode well for AI crypto coins.  The NVDA report strengthened the narrative of AI and data coins, bolstered by the release of OpenAI’s text-to-video generator tool, Sora, had previously triggered an increase in AI crypto prices as well. 

Also Read: AI altcoins pump, likely strongest narrative this bull run as Nvidia becomes top 3 firm globally by market cap

Layer 2 tokens

L2s have come back to the limelight because of Bitcoin price’s prevailing bullish outlook and how it bodes for the likes of RATS, SATS, ORDI, and the BRC-20 tokens. With the Bitcoin meme pool filling up, Layer 2 networks are going to be useful. The prevailing bullish outlook spearheaded by BTC and capital rotation is noticeable, L2 altcoins are going to see a renewed interest.

The only popular L2 project with a token on the Bitcoin blockchain is Stacks Protocol (STX). This altcoin could do well if L2s thrive this bull market. 

On the other hand, L2 scaling solutions on Ethereum, defined by development techniques expected to improve transaction throughput by processing transactions off-chain, also feature on Lucie’s prospect list. Their off-chain solutions and therefore utility continues to keep them in the limelight.

Also Read: Week Ahead: Bitcoin likely to bring Layer 2 tokens into spotlight this week

Gaming tokens

Gaming tokens also have strong utility, with enthusiasts, comprising gamers, chasing incentives through in-game earnings. Gala Games (GALA), Axie Infinity (AXS), and ImmutableX (IMX) are the most popular gaming tokens, with IMX being an outlier for sustaining gains since late Q4 of 2023 and into 2024.

Some of the gaming tokens have shown real value and can be sold and traded on exchanges.This sector tokens remain highly rated, have considerable volume of users drawn to the ecosystem and therefore have massive price appreciation potential. This comes as the industry continues to thrive and more people start gaming on the blockchain.

 Also Read: Gaming tokens surge, in spillover effect from Bitcoin price rally: GALA, SAND, ENJ, BEAM, APE

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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