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Making money in cryptocurrency is easy, but is not easy is doing the research.
Anything you invest in without research is gambling.
So today let me walk you through the different narratives in cryptocurrency.
Knowing the narratives are important because often times what we see in the market is a narrative pumping most of the tokens along that narrative along and they all moon together.
If you understand this, you can better stay positioned, filter out the low cap gems in a narrative and buy the hype, sell the news.
So let's list out the narratives
1. Layer 1 Blockchains are the decentralized networks that can execute transactions smartcontracts on their own.
Layer 1 Blockchain provide the network with security and infrastructure and they are also define the rules and consensus mechanism that govern the network.
Some examples are Ethereum, Bitcoin, Solana.
Traditional layer 1 Blockchain were not so scalable so that birthed new narrative.
2. layer 2 Blockchain which aim to improve the scalability problem and also improve on scalability and interoperability.
Layer 2 are of 3 types which are:
Statechain
Sidechain
Each of these have a related but slightly different mechanism of operation.
3. DeFi aims to use blockchain technology, smart contracts, and cryptocurrencies to provide various financial services, such as lending, borrowing, trading, investing, insuring, and more, without intermediaries, censorship, or discrimination.
Defi protocols TVL has grown from $1 billion in 2020 to $300 billion in October 2023. Some of these protocols includes; maker, Aave, Yearn, polygon.
In order words, DeFi was made to address the failure of banking.
4. LSD an acronym for liquid stake derivative are one of the hottest trends in crypto, especially after the Shanghai upgrade of Ethereum, which enabled users to withdraw their staked ETH and receive liquid staking derivatives in return.
LSDs allow users to make use of their staked liquidity to earn additional yield by using them in other DeFi protocols or markets.
Some of the leading platforms that offer LSDs are Lido, @stakewise_io and @ankrstaking
5. Real world asset are simply a tokenization of anything that can exist outside the Blockchain, be it a a piece of land, a flight ticket, a house, an intellectual property, anything.
One benefit RWA can serve as collateral for loan. Examples of RWA are @aconomy @pendle_fi
You can check out this my article on
6. Social-fi has become a leading narrative after the realization of the fruits of farming @tipcoin
Some many other social-fi tried to incentivize people time and engagement. Social-fi is still very much a trending narrative especially with @stararena getting so much backing from some top influencers.
7. Telegram trading bots connect automated bots that carry out transactions on exchanges and execute trades based on predefined rules.
Trading bot have experience a recent boom as people utilize them more in degen trading to automate trades and automatically scan smartcontracts. These bots have become more refined to allow for better entry and exist from trades. Some popular bots are @unibot @upbot @maestro.
8. Blockchain interoperability is a narrative that aim to unlock the full potential of cross chain asset transfers, data sharing and composability.
These tokens build bridges to ensure easy transfers of tokens between different networks.
Examples are the layer 0 tokens, @cosmos.
9. Ever since the Hong Kong regulation hit crypto miners in china, crypto have not been the same in that area.
But some exchanges have managed to circumvent this experiences by launching their tokens, exchanges native to the environment and regulations.
Examples are bitdao, Iris.
10. AI narrative has been a boomer in the internet as a whole, and even in cryptocurrency.
Some of these crypto hold AI utility tools, tokens or Dapps.
Examples are @Fetch_ai @SingularityDAO.
11. Game-fi (play2earn) one of the fastest growing sector in Blockchain, aims to tokenize and rewards gamers.
Game-fi has also been used to onboarding newbies with platforms like @PlayCrivia @Web3Play2Learn.
12. Play2earn use cryptocurrencies, non-fungible tokens (NFTs), and smart contracts to create a virtual gaming environment that is decentralized, transparent, and interactive.
Other popular Blockchain based games are @AxieInfinity @TheSandboxGame @MOBOX_Official @aavegotchi.
13. ReFi has become another growing narratives with majority of the builders silently develop under the radar.
ReFi is all about building more scalable and efficient solutions aimed at improving climate conditions and reduce the impact of emissions caused by mining most crypto.
ReFi also tokenizes activities that reduce the emissions of carbon into the atmosphere like walk2earn.
Some of them are @thetreegens @wassetltd
some Blockchains based on this are cosmos, celo, hedera
And they are actively engaging in activities to revamp the climate and create a liveable environment for all.
ReFi aims to create system which are regenerative instead of the exploitive and extractive system most Blockchains currently operate on.
That's all for now guys
Untill next time
Stay SAFU
i am #ticktalker
