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Introduction
During the heights of the 2021 bull run, many narratives were interweaving through the industry, resulting in astronomical gains for those investors who positioned themselves early enough. As we head into the back end of 2023, many investors are beginning to resurface, most notably on social media channels on Twitter and YouTube, throwing in their opinions as to what the subsequent big rhetoric will be in the industry. Unfortunately, we can’t say for sure which narratives are going to drive the bulk of the action if another bull run does occur, but as Bitcoin heads toward $40,000 and many investors are getting optimistic again, let’s look at some of the factors that might pick up significant momentum toward the end of this year and the start of 2024.
Summary
Gambling Narratives
Some of the most significant investment returns thus far in 2023 have come from cryptocurrency tokens. By decentralizing the gambling process and allowing you to establish a direct connection with a casino, there’s been a hive of activity in the sector, leading to the emergence of several top crypto casinos and thousands of bettors who are seeking them out as an alternate means of placing a wager. Bitcoin casino gaming didn’t suddenly emerge this year, but 2023 is undoubtedly a breakthrough year. Many are speculating about the future years allowing this industry to unearth its full potential, playing poker, blackjack, and slot games in a crypto casino could become the norm. It also has the potential to be one of the highest-performing areas if the bull run persists throughout 2023 and 2024.
AI Narratives
Although some coins with solid use cases were able to emerge from the 2021 bull run, the animal-themed narrative that was pushed insistently by Elon Musk saw coins like Shiba Inu and Dogecoin multiply by thousands of percent before eventually succumbing to the horrors of the inevitable cliff edge as the sentiment switched from bullish to bearish. Many disgruntled investors who mindlessly followed the world’s richest man and his tweets without doing a blind bit of research themselves felt like they ended up with the short straw thanks to the South African business tycoon.
However, the harsh truth is that Dogecoin has zero value, and while it might work well as a meme coin or meme stock, its long-term potential is slim to none. Artificial Intelligence tokens, however, are a far likelier avenue for investors to explore. As the general narrative surrounding AI continues to pick up, with some investors even using AI tools to invest for them, there will be some serious potential for particular coins that can identify the crossover niche and strike a balance between cutting-edge AI technology and innovative cryptocurrency ideas. Of all the realistic narratives, AI could drive significant price action if the conditions are ideal.
Gaming Tokens
Despite their similarities, there’s a distinct difference between gaming and gambling tokens. Some speculators within the industry believe that some gaming tokens could go up by 40x, and while these returns are unlikely in the cryptocurrency space, it wouldn’t be the first time it has happened, either. Gaming tokens open up a new world of blockchain and crypto mining, primarily through free-to-play P2E (Play To Earn) games.Â
These games give people a unique opportunity to farm crypto as they play, essentially offering them the chance to earn money and returns if the token becomes valuable enough. Again, despite the emergence of P2E before the last bull run, it has taken projects a few years to highlight the quality of their offer and how they could act as a feasible, legitimate route for crypto investors to make solid returns over the next 12 months.
The Importance Of Narratives
Cryptocurrency tokens must have a narrative, for better or worse, to appeal to the mass numbers of investors out there. This point applies to retail trading specifically and not so much to professional or institutional traders who can weigh up several other components through chart analysis and price action to make a more informed decision about how they will trade or invest.
Whether it’s a tongue-in-cheek narrative like Dogecoin being accepted by Tesla or a more reasonable narrative like AI, the crux of the matter is that a narrative gets people talking on social media and other platforms. Strong narratives drive publicity, which results in more people seeking out the crypto in question, and for better or worse, these are often the tokens that do the best in bull runs.
Their medium to long-term prospects are often futile, except for a few, but many people aren’t in cryptocurrency to pick out the most remarkable project; they’re after the one that is the most profitable, and more often than not, these two variables are mutually exclusive. For this reason, choosing the next big coin is challenging, but keeping an eye on narratives should assist you in the long run and give you a better understanding of how the market works.
*This article was paid for Cryptonomist did not write the article or test the platform.
