Narrative
Current theme driving crypto capital - e.g. AI, RWA, memes.
Narrative = dominant investment theme right now. 2017: ICOs and ERC-20s. 2020-21: DeFi summer, NFTs, L1s. 2023-24: AI tokens (FET, RNDR), RWA (real world assets), memes (DOGE, PEPE, WIF), Bitcoin Ordinals. Capital rotates between narratives in cycle: catching the next-up gives 10-100x. Late = buying tops.
In plain words
In every cycle the crypto market focuses on one theme for months - 2017 ICOs, 2021 NFTs, 2024 memes + AI.
Example
SOL memes Nov 2023 -> May 2024: WIF +500x, BONK +200x, POPCAT +100x. Solana memecoin season narrative.
Also known as: narrative trading