A Brief Review of the Evolution of the Crypto Narrative in 2023: From AI to Bitcoin, What's Next?

Written by: Layergg

Compilation: Deep Tide TechFlow

AI > LSD > China > Arb > Meme > LSDfi > ETF > Telebot > Gamble > DWF > MK Leader > ?

In the cryptocurrency market, it’s important to understand which narrative dominates the market. Every month is a narrative performance, and each narrative has a unique protagonist. Through this article, we’ll take you through the cryptocurrency market in 2023 and review a variety of compelling narratives.

2023 Focused Narrative Timeline

[1] AI**(22.12~)**

OpenAI’s ChatGPT has sparked interest in the crypto AI space.

• Top performer - $AGIX $FET (~10x)
• Excellent performance - OCEAN, CTXC

[2] LSD**(23.1~)**

After the Ethereum Merge, staking demand rose, and LSD attracted attention.

• Top performer - $LDO (~4x)
• Excellent performance - RPL, FXS, SD

[3] Chinese Narrative (23.2~)

With the news that Hong Kong will begin allowing cryptocurrency trading in June, the Chinese narrative emerged.

• Top performer - $CFX (~15x)
• Excellent performance - PHB, KEY, HIGH

[4] Arbitrum Season (23.3~)

The upcoming launch of the Arbitrum token has sparked a lot of interest in related ecosystem projects.

• Top performer - $GRAIL $RDNT (~10x)
• Excellent performance - GNS, JOE

[5] Meme 2.0 (23.4~)

The advent of BRC-20, and the subsequent popularity of PEPE, sparked a meme frenzy.

• Top performer - $PEPE (~25x)
• EXCELLENT PERFORMANCE - WOJAK, AIDOGE, BOB

[6] LSD-fi (23.5~)

Projects that take advantage of LSD’s liquidity are starting to gain traction.

• Top performer - $PENDLE (~5x)
• Outstanding Performance - LBR

[7] Bitcoin ETF + BlackRock (23.6~)

BlackRock’s application for a Bitcoin spot ETF led to a rise in BTC-Beta.

• Top performer - $BCH (~3x)
• Excellent performance - #BSV #STX #ALEX

[8] TelegramBot(23.7~)

Telegram-based projects have attracted market interest by generating significant revenue.

• Top performer - $UNIBOT (~15x)
• Excellent performance - PAAL, LOOT

[9] Gaming (23.8~)

The gambling industry becomes a key sector that is able to generate a lot of revenue.

• Top performer - $RLB (~5x)
• Excellent performance - WINR, FUN, DMT

[10] DWF****Labs (23.9~)

The focus on DWF Lab has led to an uptick in related projects in the market.

• Top performer - $YGG (~5x)
• Excellent performance - AGLD, DODO, ORBS

[11] Rise of the market leader (23.10~)

The positive trend of bitcoin has emerged, and the market sentiment has turned to a bull market, which has brought about the intensification of the phenomenon of “leading stocks”. The situation is similar to the dynamics of the traditional stock market.

• Top performer - $SOL $INJ $RUNE (~4x)
• Excellent performance - LINK

Current narrative

1.Solana Ecosystem

Solana’s surge has affected ecosystem projects.

• Top performer - $BONK (~7x) Top performer - $NEON $HONEY

2.New coin in Cosmos ecosystem

The projects launched within the Cosmos ecosystem in 2023 have attracted a lot of attention.

• Top performer - $TIA $KUJI $SEI (~3x) Top performer - $NTRN

**3.**AI

$NVDA hit an all-time high, and the growing demand for decentralized AI infrastructure has generated market interest.

• Top performer - $TAO (~4x) Top performer - $OCEAN $RNDR $AKT $FET

4.GAME

The news of the release of GTA 6 sparked the game’s narrative.

• Top performer - $SUPER (~4x)
• Excellent performance - $PRIME $PYR $IMX

Strategic Insights

1. When the market lacks momentum, the focus is usually on a few key narratives.
2. As the market heats up and attention increases, the focus quickly switches between various narratives and categories.
3. On average, the lifespan of a new narrative is usually about a month. **
4. Substitutes for the second echelon rarely outperform narrative leaders.

Grasping short-term market sector rotation and identifying categories or medium-term narratives that consistently outperform is key to understanding market trends.