The crypto market appears to be undergoing a shift, as investor attention pivots from the memecoins that defined the most recent cycle to utility tokens that once captured the spotlight in earlier phases of crypto's evolution. Over the last 30 days, tokens with clear use cases—spanning decentralised finance, gaming, NFTs, and enterprise applications—are showing stronger performance compared to the once-dominant memecoins. This outperformance signals a potential "rediscovery" of value-driven narratives among investors.
Interestingly, this comes at a time when the meme narrative has never been stronger, with widespread consensus among crypto talking heads about its cultural and market significance. Yet, the charts suggest that the market might be recalibrating its focus toward tokens with proven utility and functionality, a trend worth watching as the industry matures and builds on lessons from past cycles.
We created an index of the ‘2021 Darlings’, tokens that showed strong traction during the DeFi Summer and NFT and Metaverse booms that started in 2020 and rolled through until May of 2021.
30 Day Performance of 2021 Darlings vs All Memecoins
What’s going on?
The renewed interest in these tokens could stem from long-term holders seeing current prices as significant discounts compared to their 2021 highs. This behavior aligns with a familiar pattern in crypto cycles: after Bitcoin rallies, altcoins often see a surge in demand during what is known as ‘altcoin season.’ However, this rotation may also signal a broader shift—investors could be turning back to value-driven utility tokens, suggesting we’ve reached the peak of the memecoin narrative, or at least a pause in its exuberance.
Conclusion
For those seeking the next wave of outperformance, utility tokens tied to the DeFi Summer and NFT/Metaverse boom remain compelling opportunities. Many of these tokens continue to trade well below their all-time highs, offering significant upside potential for investors betting on projects with real-world applications. While memecoins remain a vibrant part of the ecosystem, the tide for now has shifted toward tokens with proven functionality and enduring relevance—an encouraging sign for the long-term growth of the crypto market.
