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There are so many ways to make money in crypto, but one of the most lucrative is trading crypto narratives. The truth is, the crypto market has constantly evolved around news, stories, and events, all of which act as catalysts for price action. With the industry being new and very volatile, narratives hold a strong influence on how the prices of cryptocurrencies turn out. In context, narratives are occurrences that influence the sentiments of the crypto markets. For instance, in 2021, “the metaverse” was the strongest narrative in crypto, and this was buttressed when social media company — Facebook changed its name to Meta, stating it planned to focus on shaping the future of the metaverse. This event caused metaverse-oriented projects like The Sandbox ($SAND) to have an ROI of over 9,000%.
The year 2022 was an emotional roller-coaster for traders and the crypto community in general. From Terra’s algorithmic stablecoin impulsion, $LUNA coin burnout, the bankruptcies of Voyager Digital and BlockFi, the downfall of a crypto hedge fund; Three Arrows Capital (3AC), and the death of the world’s second-largest centralized exchange — FTX. The space was in complete awe as it still had to deal with the constant hacks and scams.
Luckily, 2023 brought good tidings as it ushered in powerful narratives and trends that became profitable plays for smart traders.
1. Artificial Intelligence
AI became a trend in the crypto space following the November 2022 launch of OpenAI’s chatbot, ChatGPT, triggering everyone to start talking about AI and its impact on humanity. This event created a narrative in the crypto market, causing AI-powered projects to gain over 120% in token price. Some of these projects include:
I. The Graph ($GRT): Currently the biggest AI token by market capitalization, The Graph is a data indexing protocol on the Ethereum blockchain. The protocol is facilitated by its native token, $GRT, which sits at a market cap of over $1 billion.
II. SingularityNET ($AGIX): SingularityNET is a decentralized marketplace for AI services. Users can create, test, and purchase from a series of AI services using its native utility token, $AGIX.
2. Chinese-based crypto projects
A news article from SCMP revealed that the Chinese Ministry of Science and Technology had approved the establishment of the National Blockchain Technology Innovation Centre. Though the government didn’t state any clear intentions to lift its ban against cryptocurrencies, the news caused a price pump for Chinese-based crypto projects like Filecoin ($FIL), Conflux Network ($CFX), and Phoenix ($PHB). With further support from the Chinese government, traders are speculating on a fresh inflow of liquidity into the crypto market.
3. NFT-Fi tokens
Integrating DeFi-related activities into the NFT ecosystem has paved the way for the NFT-Fi narrative. The innovation this concept brings has attracted investors looking into projects offering a fusion of NFT and DeFi. Some of these include:
I. NFTY Finance ($NFTY): NFTY Finance is a decentralized NFT lending and borrowing platform that leverages on-chain technology to provide secure access to liquidity for NFTs. Its native token, $NFTY, powers the activities on the platform.
II. Sudoswap ($SUDO): Sudoswap is the Uniswap AMM for NFTs that allows users to create custom liquidity curves. Holders of $SUDO get to participate in the governance process of the platform.
Additionally, the recent $BLUR airdrop has stirred up the NFT marketplace wars, drawing lots of attention to the NFT landscape.
4. Zero-Knowledge Rollups
Recently, the co-founder of Polygon, Mihailo Bjelic, tweeted that the Polygon zkEVM would launch its mainnet on March 27th. This would also be the first-ever zkEVM mainnet. Since Zk technology has been an intriguing concept in blockchain scaling, this announcement was a leading factor in the Zk narrative, causing Zk-proof crypto projects to see a pump in price. Some leading platforms include:
I. Dusk Network ($DUSK): Dusk Network is a privacy-oriented blockchain that allows anyone to build zero-knowledge DApps. Businesses use Dusk to tokenize financial instruments and automate costly processes. Currently, the protocol has an ongoing incentivized testnet for validators. The platform’s utility token, $DUSK, is available on the Ethereum and BSC networks.
II. Findora ($FRA): Findora leverages zero-knowledge technology to provide privacy for any smart contract with scalability, ease of use, and decentralized security. $FRA, the native token of Findora, can be traded on Kucoin, Bitmart, Gate.io, and Lbank.
5. Gamble-Fi
GambleFi, a subset of DeFi, utilizes the power of blockchain to create decentralized and transparent betting platforms for punters. By leveraging the trustless nature of blockchain technology, GambleFi eliminates the need for intermediaries, offering a more secure and efficient gambling experience. This innovative approach to online gambling is poised to revolutionize the industry, much like how DeFi transformed traditional finance. Leading GambleFi projects include:
I. Rollbit (RLB): Rollbit is your all-in-one on-chain casino, NFT gambling (and loans), and 1000x leverage crypto trading platform. Holding and staking the platform’s native token, $RLB, qualifies you for a share of the casino’s profit. $RLB is live on the Solana network and can be traded on Raydium.
II. Arcadeum ($ARC): Similar to Rollbit, Arcadeum is an on-chain casino that offers a decentralized betting experience for users. The platform utilizes API3 QRNG to offer fair random number generation. Staking $ARK (sARC) gives you a cut of the protocol’s revenue. Though $ARC can be bridged to other chains, it can only be staked on the Arbitrum network.
To capitalize on trading crypto narratives, a trader should stay updated on recent crypto news and events. Also, traders must understand the risks involved in trading the crypto narrative, one of which includes buying a scam coin because it fits into a certain narrative. Similar to any investment, you’ll need to do your research and evaluate your risks.
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