How is the narrative of encryption transforming? The heat of AI remains unabated, while BRC20 is fading from view?
Narrative is crucial in the field of cryptocurrency; let's track the trends of narrative transformation together.Author: Sandra, Kaito AI
Compiled by: Alex Liu, Foresight News
How to measure what the current narrative hotspots in the crypto market are? Kaito has a method to calculate user attention to narratives (mindshare). Simply put, this metric measures the dominance of a narrative in social dissemination relative to the entire market (percentage). The denominator consists of users in the crypto Twitter circle from proprietary search engines and social graph data, while the numerator is the number of mentions of each narrative on social platforms. This provides the most quantifiable and comprehensive view of narratives in any market cycle.
Let's take a look at the changes in narrative heat since the beginning of this year:
- Artificial Intelligence (AI) remains one of the strongest narratives in the first and second quarters of 2024. In 2023, AI was also a significant dominant narrative, accounting for 30-50% of the heat for most of the year. This indicates that with the exponential growth in the entire AI field (not limited to the crypto bubble), AI verticals will continue to persist.
- Since January 2024, SocialFi has seen the most significant changes in heat, driven by the resurgence of friend.tech, the explosive popularity of fantasy.top, and other well-known projects.
- It is clear that meme coins have become one of the strongest narratives in the first and second quarters of 2024.
- The heat of BRC20 has decreased the most, possibly due to narrative fatigue after the Bitcoin halving and a recent decline in interest in Ordinals/Runes. Notably, BRC20 occupied a significant amount of heat as a vertical field at the end of 2023.
- Decentralized social (DeSo) is also expected to become a strong competitor for heat dominance—projects like Farcaster, friend.tech, and DeSo are attracting attention.
- Compared to the beginning of the year, the heat of the GameFi narrative has declined—many discussions suggest that only one breakout game is needed to revive the entire GameFi sector, but so far this year, we have not seen any major game releases.
- With the announcement of the EIGEN token, the narratives of LSD and LRT have slightly declined compared to the beginning of the year, while major LRT protocols like Renzo and Etherfi have ended their points programs or first and second phase activities.
Given the current developments in narratives this year, what does the future hold?
- Since the beginning of the year, AI and memes have been the dominant narratives. The question is whether the heat in these two areas can be sustained. For AI, the theory is very clear, as there are many external factors, such as OpenAI's continuously iterating ChatGPT model, AGI discussions, NVIDIA, etc., which may positively impact the AI vertical throughout the year. Memes also typically have no upper limit, completely depending on market trends and culture.
- Decentralized Physical Infrastructure Networks (DePIN) as a vertical field has also been steadily growing this year, similar to AI, where we see ongoing interesting experiments in this field.
- Discussions about Ethereum ETFs will heat up again, and Ethereum ETFs will continue to be a hot topic.
- ZK (Zero-Knowledge Proofs) is also a potential narrative that has not yet been widely adopted but may revive during the TGE token generation event of zkSync (hopefully soon).
Now comparing the narrative heat with the beginning of the year:
