In cryptocurrency, narrative helps market participants understand what is happening, why it is happening, and what can be expected in the future.
Staying ahead of popular narratives can allow you to reap huge benefits. As we move into 2024, there are several narratives that show promise to get ahead of the market. This article will detail the top three narratives for 2024: AI, RWA, and GameFi.
But first, let's explore how to identify narratives early.
How to uncover cryptocurrency narratives
Narratives often unfold in a time-based pattern. It is crucial to determine whether the narrative is short, medium, or long based on different characteristics.
There are a few ways to capture the narrative earlier:
- Analyze the dynamics of a particular industry over time through platforms such as CoinGecko. These dynamics mark the inflow of capital into projects within the sector. After discovering significant gains, it is important to conduct some research to understand the specific catalysts for that narrative.
- Proper measurement of social media popularity can play a huge role in identifying narratives. Twitter is one of the best platforms for identifying narratives early on. Put simply, when people start talking about it, marketing and exposure are enough to set off a snowball effect that prompts capital to flow into an industry. Tools like LunarCrush can help you aggregate large amounts of social data into actionable insights.
- Some narratives are triggered by events outside the crypto space. Macroeconomic and regulatory factors are important in determining the direction of the market in the short term. Keep an eye on these as they can provide valuable insights into the market.
After identifying a potential narrative, the next step is to research specific items within that narrative. Platforms like CoinGecko and CoinMarketCap can come in handy again. Use analytics tools like DefiLlama, Dune Analytics, and Footprint Analytics for more detailed analysis.
Important metrics to track include market capitalization and fully diluted market capitalization (FDV).
Market capitalization is the product of the total number of coins in circulation multiplied by the price of each coin. Projects with a lower market cap are typically riskier but have higher upside potential. Choose projects based on their potential and your risk appetite.
FDV stands for the total value of a crypto asset when all tokens are in circulation. Although the market cap only takes into account tokens in circulation, it does not take into account token inflation. Token inflation affects the value of a coin, so it's crucial to understand this metric.
With that in mind, let's explore the key narratives to focus on in 2024.
Key Narratives for 2024: A Comprehensive Analysis
Heading into 2024, the crypto landscape is unfolding, with transformative breakthroughs and market shifts poised for the coming bull run. Three different narratives could become the dominant force in attracting huge capital inflows.
Let's dive into the top three narratives that will lead the market in 2024
1. Artificial intelligence
No other technology has the potential to revolutionize human life like AI. The year 2023 is a testament to the growing symbiotic relationship between humans and AI. The emergence of ChatGPT and Bard sparked a small bull market in AI tokens, and the AI trend continues with its hype.
So far, no narrative has received so much attention in a bear market and has performed well across multiple tokens. This stellar performance demonstrates investors' bullish sentiment on the AI narrative.
The total market capitalization of the AI sector is only about $6 billion. This number is insignificant considering that AI will be widely adopted in the coming years. As more companies consider integrating AI and web3 solutions, AI narratives are set to be one of the best performing narratives over time.
Some AI projects to look out for:
Bittensor(TAO)
Market capitalization: $1.7 billion
Bittensor (TAO) is a decentralized network that connects global machine Xi models, operating like a collective brain with distributed "neurons". These models work collaboratively to process information, similar to the synergistic effects of neurons in the human brain.
Bittensor employs a unique blockchain architecture built on the Substrate framework, the same framework that powers Polkadot. Bittensor has built a decentralized machine-based Xi protocol that can create dedicated blockchains for seamless connectivity.
Render（RNDR）
Market capitalization: $1.7 billion
Render (RNDR) is a pioneer in integrating AI, blockchain, and graphics rendering. Render is a decentralized GPU rendering network, built on Ethereum, that provides users with access to a global market for GPU resources.
Render's solution positions it as a blockchain that corresponds to industry leaders like NVIDIA.
SingularityNet（AGIX）
Market capitalization: $421 million
SingularityNET (AGIX) is a decentralized AI services marketplace that enables developers to create and sell AI applications. Leverage blockchain and smart contracts to ensure a secure and transparent trading environment for AI services.
AGIX, its native token, facilitates transactions, incentivizes network participation, and rewards contributors, enhancing the platform and its core AI capabilities.
Ocean Protocol(OCEAN)
Market capitalization: $300 million
Ocean Protocol (OCEAN) is a decentralized, secure, and transparent data exchange platform. Businesses and individuals can securely share data, and AI integration enables it to deliver AI-powered data services.
OCEAN is the native token that serves as a central incentive and payment method that rewards active network participation and facilitates transactions for data and AI services.
Autonolas(OLAS)
Market capitalization: $319 million
Autonolas is an integrated network of off-chain services, including automation, oracles, and co-owned AI. It provides a modular stack for building such services, as well as protocols to incentivize their development.
Autonolas' services are ideally suited to combine cryptocurrency and AI to execute complex logic in a decentralized manner and constantly interact autonomously with on-chain and off-chain data.
Other AI Tokens:
- PAAL AI (PAAL): AN AI-POWERED CHATBOT THAT ENHANCES THE USER EXPERIENCE ON PLATFORMS LIKE DISCORD AND TELEGRAM. Market capitalization: $124 million
- OctaSpace (OCTA): A cutting-edge distributed computing platform. Market capitalization: $20 million
- Akash Network (AKT): Decentralized computing marketplace. Market capitalization: $514 million
2.C.
RWA is a token that represents traditional financial assets on the blockchain, whether fungible or non-fungible. These tokens are pegged to intangible assets such as real estate or treasury bonds, carbon credits, etc. Through tokenization, RWA leverages blockchain technology to increase the efficiency of transactions involving valuable assets.
RWA is one of the most important narratives in the long run, and for obvious reasons.
Global RWA is valued at more than $600 trillion. Today, the on-chain accessible tokenized RWA market cap is only around $2 billion. Putting just 1% of RWA on-chain would generate a valuation of $6 trillion, far more than the current total crypto market capitalization. BlackRock estimates that the tokenized RWA market could grow to $16 trillion by 2030.
If you want to get your hands on RWA, here are the best projects to consider:
Maple Finance(MPL)
Market Cap: $117 million
Maple Finance provides capital-efficient, DeFi-powered solutions for institutional borrowing and fixed income lending. Unlike other platforms that offer collateralized borrowing and floating rates, Maple offers low collateral for borrowers and transparent fixed income opportunities for on-chain lenders.
Lenders can earn sustainable yields by providing loans to thoroughly vetted institutional borrowers, while pool representatives initiate, manage, attract capital, and commit loans within the loan pool.
Centrifuge（CFG）
Market capitalization: $310 million
Centrifuge is a DeFi lending protocol that aims to improve credit accessibility for small businesses. Centrifuge leverages open-source infrastructure to cut the cost of traditional offline securitization, reducing the intermediary cost and complexity of TradFi.
The platform's native token, CFG, plays a key role in strengthening platform security, providing users with transaction fee incentives, and facilitating network governance and asset staking.
Pendle(PENDLE)
Market capitalization: $278 million
Pendle is a DeFi protocol that facilitates the tokenization and trading of future earnings. Its main goal is to give users control over future earnings by introducing selectivity.
Pendle's core technology is yield tokenization, a process that provides more control by separating any yield-generating asset into different yields and main components. Pendle supports multiple networks such as Ethereum, Arbitrum, BNB Chain, and Optimism.
Landshare（LAND）
Market capitalization: $837 million
Landshare is a tokenized real estate investment platform on the Binance Smart Chain. Landshare simplifies the process of creating a virtual real estate portfolio, making it easy for users to take fractional ownership of a property.
Within the network, assets are tokenized, allowing users to buy or trade these assets using cryptocurrency.
Real(RIO)
Market Cap: $4.7 million
Realio is an interoperable Layer 1 multi-chain web3 ecosystem for issuing and managing digitally native RWAs.
Realio is committed to combining the accessibility of fully on-chain decentralized peer-to-peer transactions with the functionality of an issuance and investment platform.
Other RWA Tokens:
- Goldfinch (GFI): Decentralized global credit protocol. Market capitalization: $96 million
- Propchain (PROPC): Tokenized real estate investment platform for consumers. Market capitalization: $23 million
- Galileo Protocol (LEOX): Luxury tokenization platform. Market Cap: $13 million
- Clearpool (CPOOL): A decentralized lending protocol for institutions. Market Cap: $30 million
- Credefi (CREDI): A peer-to-peer lending platform that combines DeFi and TradFi best practices. Market Cap: $5 million
GameFi
GameFi is another popular narrative that promises to do well in the coming years. Web3 infrastructure offers one of the best ways to distribute value within the gaming ecosystem, and its potential effects can be enormous.
The gaming industry has more than 2 billion users worldwide. Most gamers are very familiar with technology, which makes it easier for them to be introduced into web3. Bringing one-third of regular gamers to the blockchain means more than 600 million users, which is a huge market for GameFi projects.
So far, GameFi projects have performed well in bear markets. More and more users are attracted to the favorable economic model offered by GameFi. Here are the top GameFi projects to consider:
Nakamoto Games（NAKA）
Market capitalization: $155 million
Nakamoto Games is a decentralized platform that offers a diverse range of games to engage users worldwide. The main goal of the platform is to generate a modest and sustainable income for users while enjoying the game in a blockchain environment.
Nakamoto Games取得了很多成就：
- More than 300 live P2E games are hosted
- More than 165,000 registered users
- Won the "Best Money-Earning Game Project of 2023" award
- A multi-currency and multi-chain wallet was developed on Telegram
- A mobile app is under development
NAKA will be one of the best-performing gaming tokens in 2023, a trend that is expected to continue given its outstanding roadmap.
Shrapnel（SHRAP）
Market capitalization: $87 million
Shrapnel is the first AAA shooter built entirely on the blockchain Avalanche. Shrapnel features a first-person shooter (FPS) style and presents 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 be the next major FPS series for the next generation of gamers, offering improved content creation tools and monetization opportunities.
Big Time（BIGTIME）
Market capitalization: $105 million
Big Time is a free-to-play multiplayer action RPG that combines fast-paced combat with time-traveling adventures.
Attracting millions of players and fans through NFT rewards and BIGTIME tokens, Big Time has already made significant achievements in the GameFi space. These achievements include NFT sales of over $100 million, the title of the most streamed Web3 game on Twitch, and several awards.
Star Atlas($ATLAS)
Market capitalization: $93 million
Star Atlas is a next-generation gaming metaverse that combines blockchain technology, real-time graphics, multiplayer video games, and DeFi.
Players will be rewarded with ATLAS tokens as they venture through the galaxy, which can be used to purchase in-game assets such as weapons, ships, land, and mining equipment, which are all represented as NFTs.
Dubbz（DUBBZ）
Market capitalization: $54 million
Dubbz enables game developers to tap into the potential of web3 without having to know blockchain beforehand. Dubbz's vision is to merge traditional gaming with a tokenized Web3 ecosystem.
Through their SDK, Dubbz brings blockchain-based betting to games like Call of Duty, FIFA, Fortnite, and more. With many users opting for GameFi products, Dubbz will significantly integrate existing games with the tokenized environment.
conclusion
Staying ahead of the market narrative is one of the best ways to profit from the crypto market. Beyond the charts and technical details, the narrative determines the performance of the broader cryptocurrency market.
As we move into 2024, the three narratives of AI, RWA, and GameFi could be very prominent areas in the bull market. Given their unique problem-solving capabilities and market size, these areas hold great potential. A deep understanding of these ecosystems is essential to get the most out of the upcoming bull market.