In this article, I explained narrative trading and shared 3 crypto narratives you should consider putting your money into for maximum returns.
Let’s jump right in.
What Is Narrative Trading?
From the tag, “Narrative,” you can already tell it is about stories. (LOL)
Narrative Trading is simply analyzing and making investment decisions based on the stories, news, and events surrounding various cryptocurrencies.
And these stories or news surrounding cryptocurrencies are called crypto narratives.
Crypto narratives contribute to market sentiment and expectations of the cryptocurrencies involved.
Also, they can be positive or negative and usually impact the price of a cryptocurrency in real time.
For example, an announcement of a new partnership could lead to an increase in demand for a given cryptocurrency, driving up its price.
Similarly, news about a network breach could lead to a sell-off and a decrease in the price of the same crypto.
Over the years, investors have benefited from narrative trading both knowingly and unknowingly.
During the metaverse hype of last year, early investors recorded ROI of 100x, 1000x, and more.
What Are the Current Crypto Narratives that You Should Look Out for?
1. Real-World Assets (RWA)
The first crypto narrative on my list is real-world assets (RWA).
That is to say, investors are now seeking crypto projects that will grant them ownership of physical assets like gold, diamonds, land, equities, bonds, investment funds, etc.
According to a report by CryptoPotato, the tokenization of global illiquid assets could become a $16 trillion industry by 2030. And analysts believe that asset tokenization will also aid mainstream crypto adoption.
Another crypto narrative that will likely aid crypto adoption is CBDCs but investors are not strong on this one because financial regulations may limit the advancement here.
Some recent examples of the RWA crypto narrative include Amazon’s NFTs, Goldman Sachs’ GS DAP, Project Guardian of the Monetary Authority of Singapore, and Siemens issuing a 60 million Euro bond on Polygon.
Interestingly, RWA tokenization offers more stable yields than DeFi returns which are influenced by the crypto bull and bear cycles.
Additionally, it is more flexible as a token can be used to buy a fraction of a property where a user cannot afford the whole thing.
Plus, it makes traditional assets such as art, real estate, and private equity more liquid and easier to trade.
Now, here’s a list of RWA Protocols for you to explore this crypto narrative:
- GoldFinch
- Centrifuge
- TrueFi
- Maple Finance
- MakerDAO
There are also Web 3 platforms with real-world utility that you should consider, namely;
- Braintrust (IT recruitment)
- Helium (Internet of Things)
- Render (GPU rendering)
- Hivemapper (Global mapping)
- Teleport (Ride sharing)
2. Web 3 Gaming and NFTs
The second crypto narrative that you should give attention to is Web 3 Gaming.
There are around 200 million serious gamers worldwide — representing $200-300 billion in the total addressable market; as per data from Cointelegraph.
Unfortunately, these gamers don’t own in-game items and have little control or governance over the traditional gaming system.
This makes the play-to-earn feature of Web 3 gaming very attractive.
Also, developers in this field are in for significant profitability, especially if they create more engaging games and not just focusing on ecosystem rewards.
Interestingly, traditional game publishers are not sleeping on the trend.
They are seeking ways to integrate their established infrastructures with the metaverse. For example, Atari recently launched a suite of experiences in The Sandbox.
Again, it may seem like the NFTs era is over but we are gradually falling back in as more traditional businesses seek to integrate the blockchain into their platforms.
For example, Fashion League, a new DApp, allow players to design personalized 3D fashion NFTs and compete with other participants in the ecosystem.
Even, international companies such as Gucci, Nike, McDonald’s, and Campbell have already pioneered digital collectibles as a promotional strategy.
No doubt, NFTs will continue to impact how businesses interact with customers in the digital age.
The Top Web3 gaming platforms to invest in are
- Axie infinity (AXS)
- Decentraland (MANA)
- Enjin Coin (ENJ)
- DAppRadar (DAPR)
- The Sandbox (SAND)
And NFT marketplaces to interact with;
- OpenSea
- CryptoPunks
- NBA Top Shot
- Rarible
- SuperRare
- Foundation
- Nifty Gateway
3. BTC and ETH as Reserve Assets
Yes, the crypto OGs are still, well, the OGs.
Over the years, Bitcoin (BTC) and Ethereum (ETH) have maintained stable and predictable price movements. As a result, many investors have chosen them as reserve assets.
Some industry experts advise that countries of the world should stock up their reserves with BTC and ETH as a means to depress their own currencies against the U.S. dollar. Amazing!
Additionally, with innovations like Bitcoin Ordinals, Ethereum Shanghai, and more to come, investors in Bitcoin (BTC) and Ethereum (ETH) are set for lifetime profits.
Click on any of these exchanges to register and start occurring BTC and ETH:
Conclusion
Narrative trading means you’re keeping up to date with the latest crypto developments to make informed decisions and capitalize on shifts in the market.
As you thread on, bear in mind that crypto narratives are subject to changes and that the cryptocurrency market is highly volatile.
I hope this article has been worth your time, please share it with your friends, thank you.
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