What is the narrative in the cryptocurrency market? How is it different from track classification?
As far as the conclusion is concerned, the terms narrative, track, and section are very close, and their connotations are highly overlapping, with only slight differences.
The "track" or "sector" of cryptocurrency refers to specific technologies, products or applications, such as Layer 2, DePIN, RWA, ZK, Parallel EVM... The narrative results are similar. The main difference is that the narrative It refers to people’s attention and discussion on certain specific topics. For example, the current mainstream narratives of the author include Bitcoin halving, Ethereum spot ETF, Hong Kong ETF adoption, etc.
To put it into simpler terms, the track section is basically certain technologies or applications, while the basis of the narrative is the topics people talk about . The cut things are usually similar, with occasional slight differences, more like they are based on different technologies or applications. It is the "story" of the application.
If we could have discovered Ordinals in July last year, FriendTech in September, and discovered that the popularity of meme coins has increased significantly a few months ago, we would have been able to find more investment opportunities earlier than most people. Narrative equals market attention. , finding the direction of narrative transformation can also greatly increase the profit opportunities in the market. What tools can help us?
Why care about crypto narratives?
If you don’t invest in cryptocurrency at all and are only interested in blockchain technology, then maybe just focus on the track sector; if you want to invest in cryptocurrency, of course you need to pay attention to market topics, understand what market participants are currently focusing on, and judge Whether there are areas that are overvalued or undervalued, look for potential directions in the market and make plans for the future. This may include "buying relevant spot stocks", continuing to pay attention to different "new developments in technology", or ambushing "potential airdrop".
How to check narrative performance and ranking?
Sharing several tools requires comprehensive matching. Narrative is a topic that people talk about. It is something that is both abstract and changes rapidly. There is no tool platform that can directly view all encrypted narratives.
DUNE Analytics – Narratives Tokens Breakdown
This is a Dashboard on DUNE Analytics, created by CryptoKoryo , with the theme of crypto narrative. Its own description on the board is:
The goal of this dashboard is to provide a deeper look into the tokens composing different narratives in crypto.
The main goal of the dashboard is to provide a deeper look into the cryptocurrency narrative and the tokens within it.
DUNE Analytics - Present on-chain data in visual charts
Biyan wrote an article before introducing that DUNE mainly provides a platform. Each dashboard is created by the user. Generally, users can directly view the dashboard created by others. There are many dashboards inside, which can be said to be a treasure trove of on-chain data. It is one of the must-have crypto websites for those who like to study on-chain data.
A must-have for on-chain data veterans! Introduction to visual website Dune Analytics
Dashboard: Narratives Tokens Breakdown
There is a lot of content in the instrument panel. I will only briefly introduce it here. It is recommended to use a computer to open it. There is a lot of information. The mobile phone screen is too small to see clearly, and the opening speed is also very slow.
Practical functions are as follows
Popularity ranking of various narratives in the past 3/6 months
The currencies closest to new price highs in each of the top fifteen narratives
Top ten performers across all currencies
Coins with the worst performance by narrative
Each narrative performance comparison table has a variety of period comparisons. In addition to the common past seven days or past three months, MTD refers to the performance of the current month to date, and YTD refers to the performance of the current year to date.
Directly see what the top three narratives that have performed best recently are.
Basic usage: After clicking on the page, the first paragraph is a narrative overview, with many narrative performance comparison tables for different periods. If you move the mouse over, you will see one narrative label after another, just like a large narrative list, and you can see the current market. What narratives are there in total and their respective performances? Gradually find out the narratives you are interested in.
There are also narrative charts like this:
You can see the ups and downs of individual narratives in the past. How to use: The default is to display them all at the same time, but the picture is very messy. You can click out some narratives on the right side first, leaving only the ones you want to see.
In the Narrative Overview section, refer to the chart above to find the narrative tags that interest you.
Then, because there is too much content on the web page, it takes too much time to scroll down with the scroll wheel. It is recommended to use ctrl + f to directly search for the tag and jump to the breakdown page of the narrative later to see more details.
For example, if you are interested in RWA, use ctrl + f to search for RWA and jump directly to the RWA breakdown. There is a performance comparison of each RWA currency, and you can filter out some interesting cryptocurrencies from here.
But as mentioned earlier, narrative is a topic that changes very quickly. New narratives often appear, or new tokens appear in existing narratives, and this dashboard will gradually be unable to keep up. actual market conditions. This part relies on moderators to continuously update it, and the other part needs to be paired with other tools.
Most of the other cryptocurrency information platforms provide classifications. The classifications are usually based on the track, but basically there is some overlap between the track and the narrative, so you can also refer to it.
CoinGecko｜Categories
Top Crypto Categories by Market Cap | CoinGecko
You can reorder by clicking on each indicator. Using this method, you can quickly find out information such as the current market value ranking, trading volume ranking, increase and decrease ranking, etc. of each track.
There are many tracks in it. Although some tracks have corresponding technologies and applications, there is currently a lack of discussion and they do not yet constitute a market narrative. However, for popular tracks that are ranked relatively high in the rankings, there will be a relatively high overlap with market narratives.
SoSoValue
The web page contains basic cryptocurrency prices, trading volumes and other information, which is similar to ordinary cryptocurrency information websites, but the right column is as shown above. SpotLight directly lists the current popular narratives recommended by the website, and Sector Move displays the major tracks. The price increases and decreases are very clear at a glance.
What will be listed here are the major tracks with a relatively high market value, which have a high degree of overlap with the market narrative. After clicking, a list of cryptocurrencies belonging to this track will be listed on the left.
SoSoValue also provides very clear Bitcoin spot ETF cash flow information:
Bitcoin spot ETF is the biggest factor driving the Bitcoin market in the past few months. It can be said to be one of the important indicators that we must continue to pay attention to in the near future. Here we can quickly grasp the net inflow and outflow of ETF and other information.
Narrative content - What are people talking about? ｜Santiment - Crypto Narratives
The aforementioned tools can provide information such as: the name of the narrative, its ranking, which cryptocurrencies it contains, etc. But what is the connotation of the narrative and what are people talking about? This part requires additional search research, or extensive crawling of cryptocurrency community platforms such as Twitter and TG.
There is a tool that uses AI to analyze and organize people's discussions about narratives on the Internet, which helps us quickly grasp the connotation of narratives.
(It is recommended to use a computer to view)
Crypto Narratives: Discover Market Trends with AI Analysis
This is an AI tool provided by Santiment, a company that organizes on-chain and social data and provides related intelligent tools. This is currently only a beta version and there may be many adjustments in the future.
For narrative, the tool will sort out what people are talking about on the Internet and make a summary. For example, this is the content of "SEC and Uniswap":
(The original text is in English, use your browser to translate it into Chinese)
If we are not familiar with cryptographic narratives, can this tool help us understand more quickly what this narrative is? What things do people pay attention to?
Summary - Mastering narrative can bring us closer to the pulse of the market
If your trading strategy needs to be close to the market, such as catching hot trends and track rotation, you need to pay attention to popular market narratives. There are also disadvantages to being close to the market, which may disrupt your trading rhythm. If it is a strategy of continuous fixed investment and passive investment, you do not necessarily need to follow the narrative too closely.
But no matter what kind of trading strategy, mastering the encryption narrative will help us better understand the current situation and development direction of cryptocurrency. If you want to learn more in-depth in this field, narrative is a very practical and effective entry point. .
