Narratives usually unfold in a time-based pattern. It is crucial to determine whether a narrative is short, medium, or long based on different features.
Written by: Crypto Ramesses
Translated by: Deep Tide TechFlow
In cryptocurrency, narratives help market participants understand what is happening, why it is happening, and what can be expected in the future.
Being ahead of popular narratives can lead to significant profits. As we enter 2024, several narratives have shown promising prospects ahead of the market. This article will provide a detailed overview of the top three narratives for 2024: AI, RWA, and GameFi.
But first, let's explore how to identify narratives early.
How to Discover Cryptocurrency Narratives
Narratives usually unfold in a time-based pattern. It is crucial to determine whether a narrative is short, medium, or long based on different features.
There are several methods to capture narratives earlier:
Analyze the dynamics of a specific industry over a period of time through platforms like CoinGecko. These dynamics signal capital inflows into projects within the industry. After identifying significant returns, conducting research to understand the specific catalyst of the narrative is crucial.
Measuring social media hype can play a significant role in identifying narratives. Twitter is one of the best platforms for early narrative recognition. When people start talking about it, marketing and exposure are enough to trigger a snowball effect, prompting capital inflows into an industry. Tools like LunarCrush can help aggregate a large amount of social data into actionable insights.
Some narratives are triggered by events outside the cryptocurrency field. Macroeconomic and regulatory factors are relatively important in determining the short-term direction of the market. Pay close attention to these, as they can provide valuable insights into the market.
After identifying potential narratives, the next step is to research specific projects within the narrative. Platforms like CoinGecko and CoinMarketCap can be useful again. Utilize analysis tools such as DefiLlama, Dune Analytics, and Footprint Analytics for more detailed analysis.
Important metrics to track include market capitalization and fully diluted valuation (FDV).
Market capitalization is the total coin supply in circulation multiplied by the price per coin. Projects with lower market capitalization usually carry higher risk but have higher potential for growth. Choose projects based on their potential and your risk preference.
FDV represents the total value of the cryptocurrency assets when all tokens are in circulation. While market capitalization only considers tokens in circulation, it does not account for token inflation. Token inflation can affect the value of a coin, so understanding this metric is crucial.
With this in mind, let's explore the key narratives of 2024.
Key Narratives of 2024: Comprehensive Analysis
As we enter 2024, the cryptocurrency landscape is unfolding, and in the upcoming bull market, transformative breakthroughs and market shifts are expected. Three different narratives may become dominant forces attracting significant capital inflows.
Let's delve into the top three narratives that will lead the 2024 market.
Artificial Intelligence (AI)
No technology has the potential to revolutionize human life like AI. 2023 proved the increasingly symbiotic relationship between humans and AI. The emergence of ChatGPT and Bard sparked a small bull market for AI tokens, and the AI trend continues to exist with its hype.
So far, no narrative has received as much attention in a bear market and performed well across multiple tokens as the AI narrative. This outstanding performance demonstrates investors' bullish sentiment towards the AI narrative.
The total market value of the AI sector is only about $6 billion. Considering that AI is expected to be widely adopted in the coming years, this number is insignificant. As more companies consider integrating AI and web3 solutions, the AI narrative will become one of the best-performing narratives over time.
Some noteworthy AI projects include:
Bittensor (TAO)
Market Cap: $1.7 billion
Bittensor (TAO) is a decentralized network that connects global machine learning models, operating like a collective brain with distributed "neurons." These models collaborate to process information, similar to the cooperative action of neurons in the human brain.
Bittensor adopts a unique blockchain architecture built on the Substrate framework, which also supports Polkadot. Bittensor has established a decentralized machine learning protocol that can create dedicated blockchains for seamless connectivity.
Render (RNDR)
Market Cap: $1.7 billion
Render (RNDR) is a pioneer integrating AI, blockchain, and graphics rendering. Render is a decentralized GPU rendering network built on Ethereum, providing users with access to the global GPU resource market.
Render's solution positions it as a blockchain counterpart to industry leaders like NVIDIA.
SingularityNet (AGIX)
Market Cap: $421 million
SingularityNET (AGIX) is a decentralized AI service marketplace that enables developers to create and sell AI applications. It ensures the security and transparency of the AI service transaction environment using blockchain and smart contracts.
AGIX, its native token, facilitates transactions, incentivizes network participation, and rewards contributors, enhancing the platform and its core AI capabilities.
Ocean Protocol (OCEAN)
Market Cap: $300 million
Ocean Protocol (OCEAN) is a decentralized, secure, and transparent data exchange platform. Enterprises and individuals can securely share data, and AI integration enables it to provide AI-driven data services.
OCEAN, as the native token, serves as the central incentive and payment method, rewarding active network participation and promoting the exchange of data and AI services.
Autonolas (OLAS)
Market Cap: $319 million
Autonolas is an integrated network of off-chain services, including automation, oracles, and collectively owned AI. It provides a modular stack for building such services and a protocol that incentivizes their development.
Autonolas' services are well-suited for integrating cryptocurrency and AI, executing complex logic in a decentralized manner, and continuously interacting with on-chain and off-chain data.
Other AI tokens:
- PAAL AI (PAAL): AI-driven chatbots enhancing user experience on platforms like Discord and Telegram. Market Cap: $124 million
- OctaSpace (OCTA): Cutting-edge distributed computing platform. Market Cap: $20 million
- Akash Network (AKT): Decentralized computing marketplace. Market Cap: $514 million
Real World Assets (RWA)
RWA represents tokens that digitize traditional financial assets, whether fungible or non-fungible. These tokens are pegged to intangible assets such as real estate, financial bonds, carbon credits, and more. Through tokenization, RWA leverages blockchain technology to enhance the efficiency of transactions involving valuable assets.
RWA is one of the most important long-term narratives for obvious reasons.
The global valuation of RWA exceeds $600 trillion. Currently, the market value of tokenized RWA accessible on-chain is only about $20 billion. Placing just 1% of RWA on-chain would result in a valuation of $6 trillion, far exceeding the current total cryptocurrency market value. BlackRock estimates that the tokenized RWA market could grow to $16 trillion by 2030.
If you want to get involved in RWA, here are the top projects to consider:
Maple Finance (MPL)
Market Cap: $117 million
Maple Finance provides capital-efficient, DeFi-driven solutions for institutional borrowing and fixed income lending. Unlike other platforms offering collateralized loans and floating rates, Maple offers low-collateral loans to borrowers and transparent fixed income opportunities to on-chain lenders.
Lenders can earn sustainable returns by providing loans to thoroughly vetted institutional borrowers, while pool delegates initiate, manage, attract capital, and commit loans within the lending pool.
Centrifuge (CFG)
Market Cap: $310 million
Centrifuge is a DeFi lending protocol aimed at increasing credit accessibility for small businesses. Centrifuge reduces the costs of traditional offline securitization and decreases the intermediation costs and complexity of TradFi using open-source infrastructure.
The platform's native token, CFG, plays a crucial role in enhancing platform security, providing trading fee incentives to users, and facilitating network governance and asset collateralization.
Pendle (PENDLE)
Market Cap: $278 million
Pendle is a DeFi protocol that facilitates the tokenization and trading of future yields. Its primary goal is to give users control over future yields by introducing selectivity.
Pendle's core technology is yield tokenization, a process that separates any yield-generating asset into different yield and principal components, providing more control. Pendle supports multiple networks such as Ethereum, Arbitrum, BNB Chain, and Optimism.
Landshare (LAND)
Market Cap: $837 million
Landshare is a tokenized real estate investment platform on the Binance Smart Chain. Landshare simplifies the creation of virtual real estate investment portfolios, allowing users to easily acquire partial ownership of properties.
Assets are tokenized within the network, allowing users to purchase or trade these assets using cryptocurrency.
Realio (RIO)
Market Cap: $4.7 million
Realio is an interoperable Layer 1 multi-chain web3 ecosystem for issuing and managing digital native RWAs.
Realio aims to combine the accessibility of fully on-chain decentralized peer-to-peer trading with the functionality of issuance and investment platforms.
Other RWA tokens:
- Goldfinch (GFI): Decentralized global credit protocol. Market Cap: $96 million
- Propchain (PROPC): Consumer-oriented tokenized real estate investment platform. Market Cap: $23 million
- Galileo Protocol (LEOX): Luxury asset tokenization platform. Market Cap: $13 million
- Clearpool (CPOOL): Institutional decentralized lending protocol. Market Cap: $30 million
- Credefi (CREDI): Peer-to-peer lending platform combining DeFi and TradFi best practices. Market Cap: $5 million
GameFi
GameFi is another popular narrative expected to perform well in the coming years. Web3 infrastructure provides one of the best ways to allocate value within gaming ecosystems, with potentially significant effects.
The gaming industry has over 2 billion users globally. Most gamers are highly tech-savvy, making them more easily onboarded into web3. Introducing one-third of regular gamers to blockchain means over 600 million users, a huge market for GameFi projects.
So far, GameFi projects have performed well in bear markets. More users are attracted to the favorable economic models offered by GameFi. Here are the top GameFi projects to consider:
Nakamoto Games (NAKA)
Market Cap: $155 million
Nakamoto Games is a decentralized platform offering diverse games to attract global users. The platform's primary goal is to create moderate and sustainable income for users while enjoying games in a blockchain environment.
Nakamoto Games has achieved many milestones:
- Hosted over 300 live P2E games
- Registered over 165,000 users
- Won the "Best Money-Making Game Project of 2023" award
- Developed multi-currency and multi-chain wallets on Telegram
- Mobile app in development
NAKA is expected to be one of the best-performing gaming tokens in 2023, given its outstanding roadmap.
Shrapnel (SHRAP)
Market Cap: $87 million
Shrapnel is the first AAA shooting game entirely built on the Avalanche blockchain. Shrapnel adopts a first-person shooter (FPS) style, showcasing environments and gameplay reminiscent of popular games like Call of Duty, Battlefield, and Warfront.
Considering the global impact of Minecraft and Roblox on millions of players, Shrapnel aspires to become the next major FPS series for the next generation of players, offering improved content creation tools and monetization opportunities.
Big Time (BIGTIME)
Market Cap: $105 million
Big Time is a free-to-play multiplayer action role-playing game that combines fast-paced combat and time-traveling adventures.
Big Time has attracted millions of players and fans through NFT rewards and the BIGTIME token, achieving significant milestones in the GameFi space. These achievements include NFT sales exceeding $100 million, earning the title of the most-watched Web3 game on Twitch, and winning multiple awards.
Star Atlas ($ATLAS)
Market Cap: $93 million
Star Atlas is a next-generation gaming metaverse that combines blockchain technology, real-time graphics, multiplayer video games, and DeFi.
Players earn ATLAS tokens as rewards while adventuring in the galaxy, which can be used to purchase in-game assets such as weapons, ships, land, and mining equipment, all represented as NFTs.
Dubbz (DUBBZ)
Market Cap: $54 million
Dubbz enables game developers to tap into the potential of web3 without needing prior knowledge of blockchain. Dubbz's vision is to integrate traditional games with the tokenized web3 ecosystem.
Through their SDK, Dubbz brings blockchain-based betting to games like Call of Duty, FIFA, and Fortnite. As many users opt for GameFi products, Dubbz will significantly integrate existing games with the tokenized environment.
Conclusion
Staying ahead of market narratives is one of the best ways to profit from the crypto market. Besides charts and technical details, narratives determine the broader performance of the cryptocurrency market.
As we enter 2024, the AI, RWA, and GameFi narratives may be prominent areas in the upcoming bull market. Given their unique problem-solving capabilities and market size, these areas have tremendous potential. Understanding these ecosystems deeply is crucial for maximizing gains from the upcoming bull market.
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