Crypto gaming and Layer 2 tokens lost 16% and 30% in 2024

Crypto markets experienced notable gains in 2024, with sectors like memecoins, AI tokens, and Layer 1 projects achieving significant value increases.  

However, gaming and Layer 2 (L2) tokens faced declines, as reflected in The Block’s GMCI indices.  

The GMCI Gaming index fell 16% in 2024, encompassing 12 digital assets, with Beam (CRYPTO:BEAM), ImmutableX (CRYPTO:IMX), and Gala (CRYPTO:GALA) accounting for nearly 60% of its value.  

Notably, the index excluded TON, a token that surged over 100% due to the rising popularity of Telegram-based crypto games.  

Layer 2 tokens experienced a steeper 30% decline, driven by price drops in major assets like Polygon (CRYPTO:POL) and Arbitrum (CRYPTO:ARB), which outweighed gains from Mantle (CRYPTO:MNT).  

These three tokens represented over 60% of the Layer 2 index, highlighting their influence on the sector's performance.  

In contrast, other indices showed strong growth.  

The GMCI 30, comprising the top 30 digital assets, rose nearly 90% in 2024, securing the third-best performance after the memecoin and AI indices.  

Sectors like decentralised physical infrastructure networks (DePIN) and Layer 1 tokens also demonstrated robust growth, signaling broader market strength.  

Looking ahead, Layer 2 tokens may find opportunities for recovery in 2025.  

Ethereum (CRYPTO:ETH) Layer 2 network Linea, developed by Consensys, plans to launch its token in the first quarter, potentially sparking renewed interest in the sector.  

Uniswap’s (CRYPTO:UNI) Layer 2 project, Unichain, is also expected to launch its mainnet in early 2025, contributing to activity within Optimism’s (CRYPTO:OP) Superchain ecosystem.  

While gaming and Layer 2 protocols underperformed, other crypto sectors showcased resilience and innovation, highlighting the diversity of outcomes across the market.  

New projects and technologies in 2025 could provide a pathway for underperforming sectors to regain momentum.