Top 5 Crypto Narratives in 2024 for Narrative-Based Trading
Investors follow themes and closely watch narratives around trending themes. Narrative-based investment is as true for cryptos as for traditional asset classes. Some trending crypto narratives are AI crypto coins, Web3 Gaming tokens, and Bitcoin Ordinals, to name a few. Read on to learn more about crypto narratives and how you can use them to your advantage.
What is A Narrative in Crypto?
A narrative is a story or idea that influences investor decisions. A crypto narrative is a story or theme that impacts crypto trading and investment decisions.
You can spot trending crypto narratives by the increasing popularity of a particular group of cryptos, driven by increased adoption and intense blockchain activity.
Here are a few examples of news that can act as catalysts:
The rise in the popularity of AI led to a rally in AI tokens
Increased adoption of real-world asset tokenization boosting interest in RWA tokens.
What is Narrative-Based Trading?
Narrative-based trading is a strategy that involves trading and investing in crypto assets based on trending news stories, evolving themes, and prevailing market sentiment. Typically, crypto narratives are shaped by social media and news outlets.
The narrative-based crypto trading involves traders paying attention to trending investment themes, geopolitical situations, major technological developments, changes in preferences, etc.
A narrative-based trader will have to stay informed about the latest news and developments across the globe. The trader will also need to anticipate the impact of a particular development on the crypto market and make timely decisions to benefit from narrative-based crypto market movements.
We have listed the top five crypto narratives and the most popular coins for all narratives.
Five Crypto Narratives for 2024
The first quarter of 2024 saw the crypto market gaining bullish momentum, thanks to spot BTC ETF approval in the US, Bitcoin halving, and an increased interest in Solana after a Solana-based meme coins frenzy.
Crypto narratives mostly center around the increased interest in AI and the rising popularity of Web3 gaming. Here are some of the hottest crypto narratives of 2024.
1. Web3 Gaming
Web3 gaming utilizes distributed ledger technology to provide increased transparency, security, democratization, and greater user control over in-game assets. Web3 gaming is the intersection of blockchain technology and online gaming.
The popularity of Web3 gaming is on the rise thanks to the play-to-earn model where players earn cryptocurrencies and NFTs as rewards for actively participating in the game.
Some of the popular Web3 gaming tokens are:
IMX
FLOKI
GALA
EGLD
AXS
You could benefit from narrative-based crypto trading by investing in one of these Web3 tokens.
2. Artificial Intelligence
The confluence of Artificial Intelligence (AI) and crypto has opened up many lucrative investment and trading opportunities. It is one of the most prominent narratives across asset classes and crypto projects are no exception.
AI tokens differ from general-purpose tokens. The tokens represent crypto projects built on the crossroads of artificial intelligence and blockchain.
The integration of crypto and AI is expected to deepen over the years. This might fuel a lasting rally in AI crypto coins.
These are some of the most popular AI crypto coins globally today. Which are:
NEAR Protocol
RNDR
TAO
INJ
3. Real World Asset (RWA) Tokenization
The tokenization of real-world assets such as paintings, real estate, and commodities ensures increased security, prevents fraud, and facilitates fractional ownership of asset classes.
The real-world asset tokenization trend is taking the financial sector by storm as banks and major financial institutions have rolled out tokenized funds.
Some of the most popular blockchains used for RWA tokenization are listed below:
ONDO
POLYX
PENDLE
4. DePIN (Decentralized Physical Infrastructure Networks)
DePIN, short for Decentralized Physical Infrastructure Networks, extends the blockchain protocols to facilitate the decentralized operation of physical hardware infrastructure. This means the Web3 infrastructure built on blockchain, cryptos, and smart contracts can be used to facilitate operations of energy networks, ride-sharing networks, etc.
DePIN advancement is finding applications in the Internet of Things projects. Below listed are some of the promising DePIN tokens. You can find all these tokens on Kucoin
FIL
RNDR
Theta Network (THETA)
IOTX
5. Bitcoin Ordinals and BRC-20 Tokens
Bitcoin Ordinals and Runes leverage the Taproot upgrade that went live in 2021 on the Bitcoin blockchain. The upgrade powers the inscription of data directly on Satoshi, the smallest unit of Bitcoin.
The Ordinals protocol enables the Bitcoin blockchain to mint NFTs. BRC-20 is an experimental token standard built on Ordinals. ORDI is the top BTC Ordinals token listed on Kucoin
Conclusion
The crypto landscape is evolving rapidly. Crypto narratives have kept pace with advancements in blockchain technology. Clearly, the top narratives of 2024 are Web3 gaming and AI tokens. This post has detailed some trending crypto narratives and how they can be used in crypto trading.
