12 Popular Narratives of Crypto Investment in 2024

Author: Arjun Chand Source: bankless Translation: Shan Oppa, Bitchain Vision

The prosperous bull market is in full swing.

Bitcoin broke through the all-time high of $70,000, and Ethereum price once again briefly hit $4,000, with the total market capitalization of the cryptocurrency market reaching $2.5 trillion.History shows that we are at an exciting start.

In a bull market, time is money—every second is crucial.Every decentralized financial enthusiast follows the principle of “buy first, study later”.During such times, when every news affects the price, the project party often uses some popular words in ambiguous way to cater to the market.

This narrative from Bankless will become your “secret” to distinguish the authenticity of information and determine whether the project is truly valuable.We hope it will be a valuable resource for you when researching and selecting winners in this bull market.

What is the hottest cryptocurrency investment narrative in 2024?

Decentralized AI, Restaking, Bitcoin L2, Modularity, Data Availability, DePIN, Alt L1, Intent, Interoperability, Inscription, Parallel EVM, RWA

Decentralized artificial intelligence

Going directly into the current hot topic, decentralized AI involves open source AI systems running on distributed networks such as blockchains, rather than under the control of a single organization.This approach takes advantage of blockchain technology to democratize artificial intelligence and make it easier for everyone to access and use it.

Example: Bittensor, Render, Grass and other projects create an open market where individuals can train machine learning models, contribute computing resources, and share data.This creates a more inclusive and motivating environment for AI innovation.

Narrative: The general consensus is that the crossover of artificial intelligence and cryptocurrencies will be one of the themes of this cycle, as it may be the most easily understood investment opportunity for the public.

Re-pled

Repair is a strategy in which investors use their pledged assets to earn additional rewards, thereby effectively compounding returns.This is done by using pledged assets on the secondary platform to participate in further pledge opportunities.

Example: EigenLayer is a pioneer in the re-staking movement, which enables users to re-stake ETH that has been pledged with various liquid staking providers.The restaken ETH on EigenLayer will then be used within its security framework, aiming to extend Ethereum’s security assurance to other applications and blockchains.

Description:Re-staking is expected to be one of the biggest events in 2024, with more than $11 billion already on EigenLayer positioning it as TVL’s second largest app in cryptocurrency.A complete application ecosystem is being designed on EigenLayer and this growth is expected to continue.

Recommended reading:

Bankless: EigenLayer’s risk management

Bankless’s five crypto industry forecasts for 2024: EigenLayer, Airdrop, Solana

Bankless: Why is EigenLayer the next $1 billion airdrop opportunity?

Bitcoin L2

Bitcoin Layer 2 Solution (Bitcoin L2) is a network or protocol built on top of the Bitcoin blockchain (L1).They are designed to expand the Bitcoin network by processing off-chain (outside the Bitcoin blockchain) transactions while inheriting its security and benefiting from its network effects.

Example: Lightning Network, Stacks and BitVM are popular Bitcoin L2.

Narrative: Bitcoin L2 has the potential to follow the success of Ethereum Layer 2 and release some idle capital on Bitcoin.This could drive wider adoption and introduce value into the Bitcoin ecosystem.

Recommended reading:Bankless: 8 Bitcoin L2s you should pay attention to

Modular

ModularIt refers to the design method of building blockchains and applications in cryptocurrencies, where the system is built using separate dedicated components or modules.This design philosophy aims to improve the efficiency and scalability of the technology stack by isolating the functionality of each module from the others.

Example: In blockchain development, modularization usually involves dividing the architecture into three main layers: execution, settlement, and data availability.The goal of doing this is to make blockchains cheaper and more scalable through specialization.

Different projects focus on different parts of the stack.The term is popularized primarily by Celestia, which focuses on the data availability of the stack, while Ethereum is recognized for its strong settlement layer, and Solana is widely praised for its execution capabilities.

Narrative: One of the most prominent narratives around modularity is the concept of “modular currency”; Celestia is at the forefront of the modular blockchain movement.This narrative combines several other things mentioned in this list, such as the Alt L1 narrative and the DA layer, among others.

Recommended reading:Bankless: A new tool for modular Rollup

Data Availability

Data Availability (DA) ensures that all the data needed to verify transactions on the blockchain is accessible to anyone who needs it.

This is crucial to verify the transparency and security of transactions and maintaining the chain, as anyone can use this data to rebuild the entire state of the chain when needed.

Example: Traditionally, aggregation relies on Ethereum to meet its data availability requirements.However, with the launch of more cost-effective options like Celestia, EigenDA and Avail, we are witnessing a shift in projects starting to adopt these new platforms to meet their data availability needs.

Narrative: The DA layer provides a new way of blockchain expansion and will become the center for blockchain to publish data.

Recommended reading:

Disassemble the data availability layer The overlooked LEGO bricks in the future

DePIN

Decentralized Physical Infrastructure Network (DePIN) is a system that manages and coordinates real-world physical infrastructure through a decentralized network built on blockchain technology.

DePIN aims to increase efficiency and reduce infrastructure costs by allocating control and ownership to individuals who are motivated to participate in the network.

Example: Helium has been recognized as a DePIN program to create a decentralized wireless network that rewards individuals who use Helium network devices to contribute to coverage.Other notable DePIN projects include Hivemapper, which focuses on the global map network and Filecoin, which provides decentralized file storage solutions.

Narrative: DePIN represents a real-life use case of cryptocurrency and blockchain technology.Synergies with emerging trends, such as the integration of cryptocurrencies with artificial intelligence, further enhance the relevance of DePIN.The rise of AI agents may increase the need for resources that DePIN projects can provide efficiently and cost-effectively.

Recommended reading:

Solana and DePIN dual narrative, dual flywheel coin price increase model. Is the hot Helium Mobile a new Ponzi?

Alt L1

Alternative Layer 1 (alt L1) is a blockchain that positions itself as a mainstream blockchain competitor.These blockchains are designed to address the limitations of existing blockchains by adopting different technical approaches to optimize unique features.

Example: During the last bull market, Solana and Avalanche became famous Alt L1, challenging Ethereum’s dominance as a market leader.Solana focuses on high throughput, scalability and low transaction costs, while Ethereum continues to emphasize security and decentralization.

Narrative: Alt L1 trading was the decisive theme of the previous cycle, with Solana, Terra and Avalanche (usually grouped as “SolLunaAvax”) at the forefront.The general consensus is that Alt L1 trading will never disappear and will remain a key theme for every cycle.

Solana is still the most popular in the current bull market, and we also have newcomers like Celestia to get attention.The abbreviation “Solestia” has become a buzzword on cryptocurrency Twitter, representing the Alt L1 narrative of the cycle.

Recommended reading:Why bullish Alt L1

intention

Intent in the context of blockchainIt refers to the result or final state that the user wishes to achieve on the chain (for example, executing transactions, lending assets).The actual implementation is entrusted to a third-party agent, rather than the user performing these operations directly.These agents often compete in auction-like environments to gain the right to achieve user intentions in the most efficient way.

Example: The DeFi ecosystem hosts various intent-driven projects, including basic protocols such as Anoma, Suave, Essential, applications such as Cowswap, Across, and third-party agents such as Propellerheads and Barter.

Narrative: Intent-centric protocols are at the forefront of DeFi, generating billions of order flows.They provide important opportunities to gain value through fees, MEVs, and more.These projects also have the potential to greatly enhance the DeFi user experience, serving as an abstraction layer, simplifying interactions in an increasingly complex multi-chain ecosystem.

Interoperability

Interoperability refers to the ability to seamlessly communicate and exchange data and assets between different blockchains.This feature unlocks the ability of users to move assets across chains and applications to run on multiple chains.

Example: Projects such as LayerZero, Axelar and Wormhole focus on facilitating data transfer between chains.Applications such as Across, Stargate and Connext focus on asset transfers.In addition, there are liquidity aggregators such as LI.FI.

Narrative: Multi-chain papers are being staged in real time.Today, many different blockchains lock billions of dollars in their DeFi ecosystem, serving millions of users.It is obvious that data and value are needed to move on these chains, and this demand will only increase as the number of chains increases.Projects that promote inter-chain data and value exchange are valuable tracks for multi-chain ecosystems.

Inscription

Inscription is a technique for writing arbitrary data directly to a single Satoshi (the minimum denomination of Bitcoin) (1 Bitcoin = 100,000,000 satoshis).These inscriptions are often referred to by the public as “Bitcoin NFT” and can create unique digital assets on the Bitcoin blockchain.They can also be used to mint BRC-20 tokens according to experimental BRC-20 standards.

Example: Bitcoin NFT collections such as NodeMonkes, Quantum Cats, and Bitcoin Puppets are famous examples of inscriptions.These can be traded on platforms such as OKX’s Ordinals Market and Magic Eden.Leading BRC-20 tokens by market capitalization include ORDI, SATS and MUBI.

Narrative: NFT has become one of the most popular and valuable assets in cryptocurrencies.Bitcoin holders now have the opportunity to expand their investments to new Bitcoin-based applications such as NFT and BRC-20 tokens, which provides potentially significant opportunities.

Recommended reading:Bankless: Ordinals Series Issues Guide

Parallel EVM

Parallel EVM is an innovative blockchain architecture designed to overcome the scalability challenges faced by standard EVMs.It does this by executing transactions in parallel (and not sequentially processing multiple independent transactions), thereby increasing throughput and improving user experience.

Imagine a trading platform on Ethereum where each transaction is processed one by one.By contrast, parallel EVMs will allow transactions independently of each other to be executed simultaneously, significantly speeding up transaction processing time.

Example: Projects such as Monad and Sei are leading the way in parallel EVM development.Other well-known projects, such as BNB Chain and Scroll, also include parallel EVM functionality in their future plans.

Narrative: The parallel EVM field is particularly promising because it leverages the established network effects of EVM and the developer ecosystem, while also combining parallel processing techniques that help Solana perform quickly.These platforms have great potential by providing a mix of EVM compatibility and high-speed transaction processing.

RWA

RWA, real-world assets, cover a wide range of tangible and intangible assets such as gold, real estate, commodities, stocks and the US dollar, whose intrinsic value exists outside the blockchain ecosystem.The tokenization of these assets brings them to the blockchain, providing innovative ways to trade, manage and value them.

Example: The best examples of real-world asset tokenization are stablecoins such as USDC and USDT, which represent the US dollar on the chain.While stablecoins are the basic application of RWA, there are many projects, such as Ondo, Parcl and Matteur, which are expanding the concept to various assets, including real estate, treasury bills, gold, artworks, and more.

Narrative: The RWA protocol has the potential to tokenize almost all assets in the world and bring them into blockchain, thus entering a potential market worth millions of dollars.As more and more asset classes are tokenized, the scope of the RWA narrative is expected to expand significantly.

Recommended reading:Bankless: Tokenized US Treasury and RWA Revolution