The cryptocurrency is a "narrative" game. But narratives are constantly changing, and narrative trends are also evolving.
The second quarter of 2023 is coming to an end, and the cryptocurrency market has been mostly bearish. Which narratives have performed the best?
On-chain analyst Crypto Kroyo has visualized 20 narratives on a dashboard and analyzed the data.
Top 5 by market cap ---> BTC, ETH, BNB, XRP, ADA
DeFi blue chips ---> AAVE, COMP, CRV, MKR, UNI
Ethereum Layer 2s ---> ARB, BOBA, MATIC, METIS, OP
LSD ---> FIS, FXS, LIDO, RPL, SWISE
LSD Layer 2 ---> Asymetrix, Lybra, Parallax, Pendle, TENET
DEX ---> CRV, GRAIL, JOE, SUSHI, UNI
Perpetual DEX ---> DYDX, GMX, GNS, VELA, MCB
RWA ---> CFG, CPOOL, GFI, MPL, TRU
AI ---> AGIX, ALI, FET, OCEAN, ORAI
GameFi ---> APE, AXS, GALA, MANA, SAND
GambleFi ---> ARC, BCB, BETU, FUN, WINR
Meme 1.0 ---> BONE, DOGE, ELON, FLOKI, SHIB
Meme 2.0 ---> BOB, LADYS, PEPE, TURBO, WOJAK
NFT ---> Azuki, Bayc, CryptoPunks, Doodles, Mayc
Wallets ---> TWT, SFP, C 98, TGT, XDEFI
Privacy ---> NYM, SCRT, ZEC
Actual yield ---> CRV, GMX, GNS, RDNT, SNX
Stablecoin issuers ---> FLX, FXS, LQTY, MKR, TRIBE
Account Abstraction ---> BICO, EDEN, INST, KROM, WALLET
Application Chains ---> ATOM, AVAX, OP
Average Weekly Returns
Trading Volume on DEX
Percentage of Transactions per Narrative
Analysis
In the past 3 months, the LSD L 2 narrative has been the winner, led by Pendle, as well as new projects like Lybra and Tenet.
Meme 2.0 has experienced a typical rise and fall (pump and dump), with most tokens falling over 80% from their peak in April.
As expected, tokens with higher market capitalization have lower volatility, and vice versa.
However, the market rebounded last week. DeFi blue-chip narratives outperformed all other narratives, which is a very rare occurrence, driven by Bitcoin ETF and BlackRock.
RWA narratives led by Centrifuge (CGF) and Maple (MPI) also performed well.
It is worth noting that Meme 2.0 also saw a rebound.
In terms of daily trading volume, tokens with larger market capitalization largely dominate. There is nothing particularly noteworthy to observe. (Please note that the data comes from CMC and it is unclear whether it includes trading on DEX).
Conclusion
It is not a bull market yet, so we haven't seen any narrative clearly outperforming the major trend.
The outstanding performance of LSD L 2 is biased as many projects were launched in the second quarter, but it is still a narrative worth paying attention to.
DeFi blue chips have performed relatively well in both bearish (mild retreat over the past 3 months) and bullish (mild increase over the past few days) periods. Given the market's uncertainty, it would be wise to allocate higher to the DeFi blue chips narrative. (CRV, AAVE, COMP...)
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