The Next Wave of Crypto Narratives Revealed!

As the cryptocurrency world undergoes constant shifts and changes, there is a growing debate about which narratives will dominate the next cycle.

Noted industry analyst Xin Jiang (previously Binance analyst) has offered some interesting insights into this ever-changing landscape, particularly emphasizing the role of social media and messaging platforms in the evolving DeFi space.

Social Media and Messaging Platforms as Financial Networks

Xin Jiang asserts that projects like Memecoins, Friend.tech, and Unibots are pioneering the "new DeFi" by leveraging platforms like the social network formerly known as Twitter and Telegram.

Memecoins like HarryPotterObamaSonic10Inu have fostered a unique "degen" culture that offers a more equitable token mechanism compared to VC-backed tokens. According to Jiang, these coins have followed in the footsteps of NFT PFPs to become a cultural phenomenon within the crypto realm.

Friend.tech, initially viewed as just a social platform, is according to Jiang more like a financial product built atop Twitter’s user network. With 24-hour fees climbing to $1.4 million at its peak, Friend.tech seems to be pre-tokenizing Twitter's network before an official token launch. However, with a 95% drop in daily transactions since its peak, its future remains uncertain.

Trading bots like Unibot, Maestro or Moonbot, which integrates with Telegram, offer features for meme traders like limit orders and copy trades. This taps into Telegram’s vast user base and aligns token value directly with revenue. However, the increased interest in Telegram trading bots has also raised security concerns.

Other Possible Crypto Narratives for the 2024/2025 Bull Run

Here is an overview of most likely crypto narrative for potential Bull Run coming in 2024/2025 season.

AI (Artificial Intelligence)

Artificial Intelligence in crypto aims to leverage machine learning algorithms and data analytics to make financial decisions, trading, and even governance more efficient.

The AI space gained momentum with platforms like ChatGPT, showcasing the commercial potential of AI technologies.

Metaverse

A digital universe that includes multiple interconnected virtual worlds, offering an immersive social and financial experience.

It had a robust presence in the previous bull market but questions about its mainstream acceptance remain.

Gaming

Video games that use blockchain to manage in-game assets, rewards, and gameplay mechanics. Axie Infinity led the charge in the last bull cycle, but the sector awaits more compelling games for sustained growth.

L1s (Layer 1 Solutions)

These are the foundational blockchains like Ethereum and Solana, upon which various applications and secondary layers are built. Layer 1 solutions remain foundational and have consistently attracted interest and capital.

L2s (Layer 2 Solutions)

What It Is: Secondary layers built on top of foundational blockchains to improve scalability and transaction speed. Projects like MATIC and ARB are gaining traction, and the technology is seen as one of the most promising in the crypto space.

Interoperability

The ability for different blockchains to interact with each other, sharing information and value in a seamless manner.

Projects like ATOM and DOT aim to bridge different blockchain ecosystems and have shown promise but await broader adoption.

DeFi (Decentralized Finance)

Financial services like lending, borrowing, or asset trading conducted on blockchain without intermediaries.

Market Overview: Although DeFi had its moment, the narrative seems to be taking a back seat to other emerging trends.

Storage

Blockchain-based data storage solutions aim to be more secure and decentralized compared to traditional cloud or server-based storage systems. Projects like Filecoin and Arweave offer the necessary infrastructure but lack the sizzle of other narratives.

Supply Chain

What It Is: Use of blockchain to improve transparency, traceability, and efficiency in supply chain management.
Market Overview: While still relevant, it hasn't captured the imagination like other sectors in crypto.

Real-World Assets

Tokenization of tangible assets like real estate, art, or any form of physical value. This is a relatively new field showing promise in transforming how we deal with physical assets.

Payment

Using cryptocurrencies for daily transactions, both online and offline. Many coins offer this feature, but the narrative is old and hasn't seen much innovation lately.

NFTs (Non-Fungible Tokens)

Unique digital assets verified using blockchain technology, often used for digital art, collectibles, and more. After a significant boom, the sector is at a crossroads, waiting to see if another wave of interest will materialize.

Final Take

The next crypto cycle may be heavily influenced by DeFi platforms that transform social and messaging networks into financial ecosystems, as indicated by developments in Friend.tech and Unibots. According to Xin Jiang, success will hinge on projects that combine strong product development, effective tokenomics, and community culture.

Traditional Layer 1 and Layer 2 solutions will remain crucial, but the spotlight could shift to gaming, tokenization of real-world assets, and possibly AI. Investors should focus on projects that offer a well-rounded approach, as these are most likely to dominate the next cycle.