Top 5 Strongest Crypto Narratives Of 2023 With 100x Potential
Are you ready to discover the most powerful crypto narratives that could skyrocket your investment in 2023?
Trading crypto is all about stories. The crypto market is constantly evolving, making it crucial for investors to stay on top of the latest trends.
In this article, we’ll take a closer look at the top five most compelling crypto narratives that have the potential to produce incredible returns in the following weeks and months.
2023 has already seen several narratives but new ones are continuously popping up. And I want you to be in the know!
1. LSD narrative
With the Ethereum Shanghai Upgrade just around the corner, native tokens of Liquid Staking Derivates (LSD) platforms are likely to witness a massive surge.
The Shanghai Upgrade will allow Ethereum network validators to finally access staked tokens and rewards which is now impossible. This will boost confidence in the Ethereum blockchain and could act as a catalyst for LSD protocols.
The newest development in the DeFi space, LSDs provide a fresh way to generate interest on digital assets, especially Ethereum.
LSDs circumvent the conventional Ethereum staking process by lowering the staking requirements and enabling ETH holders to stake without having to lock in any tokens.
This preserves liquidity as it means staked tokens can be used in other Defi applications and makes ETH staking much more attractive.
Top LSD tokens that are best positioned to provide massive returns: Lido DAO ($LDO), Frax Share ($FXS), Rocket Pool ($RPL), Ankr ($ANKR), ssv.network ($SSV), StakeWise ($SWISE), Stader ($SD), Bifrost ($BNC), StaFi ($FIS)
2. ZK-rollups narrative
The Arbitrum airdrop is behind us and crypto investors are looking for the next big thing. This will come in the form of ZK-rollups.
Two of the most anticipated airdrops of this year are zkSync and Starknet as they could be even bigger than Arbitrum.
zkSync and Starknet are Layer 2 solutions for scaling the Ethereum blockchain, making it faster and cheaper. They use Zero-Knowledge (ZK) rollups to group transactions into batches and execute them outside the Ethereum chain.
As they keep only the absolute minimum amount of transaction data on-chain, this reduces congestion and greatly improves the whole process.
With Ethereum being used for a growing number of dApps, efficient solutions for its inherent scaling issues are of absolute necessity.
Top tokens that are best placed to profit from the ZK momentum: Immutable ($IMX), Mina ($MINA), Loopring ($LRC), dYdX ($DYDX), Celer Network ($CELR), SysCoin ($SYS), Dusk Network ($DUSK)
3. Perpetual DEXs narrative
With regulators clamping down on crypto and centralized exchanges, decentralized exchanges (DEXs) are gaining a lot of fresh traction. This year, a new type of DEXs is especially a hot topic - perpetual DEXs.
Perpetual trading - trading of futures, opening long and short positions, and using leverage - used to be available only on centralized exchanges and subject to strict regulations.
Now, more and more DEXs are offering these features. This means you can simply connect your wallet and short Bitcoin or use leverage for example.
Top PerpDEX tokens that can surge this year: GMX ($GMX), dYdX ($DYDX), Gains Network ($GNS), Vela Exchange ($VELA), Level Finance ($LVL), MUX Protocol ($MCB), Mummy Finance ($MMY), Perpetual Protocol ($PERP)
4. AI narrative
Artificial intelligence is one of the most prevailing crypto storylines of this year.
In recent months, ChatGPT has taken over the internet, and the popularity of AI coins has increased.
But I don’t believe the AI narrative is over.
AI is a much stronger trend than the Metaverse or NFTs, for example, because it precedes crypto and is a very solid independent industry.
Microsoft invested over $10 billion in ChatGPT and will incorporate it into its Bing search engine. Google and other tech giants won’t stand on the sidelines. They will develop and announce their own AI applications, which could cause another surge in the price of AI tokens.
AI crypto projects aim to help various industries become more efficient by using the advantages of AI in the development of their products and services.
Top AI altcoins that are in the best position to rally on positive AI news: The Graph ($GRT), Ocean Protocol ($OCEAN), SingularityNET ($AGIX), Injective ($INJ), Fetch.ai ($FET), iExec RLC ($RLC), Artificial Liquid Intelligence ($ALI), Numeraire ($NUM), Covalent ($CQT), Measurable Data Token ($MDT), DeepBrain Chain ($DBC), CryptoGPT($GPT), AIPad ($AIPAD)
5. Chinese narrative
While the US is tightening regulations concerning crypto, China is starting to do the opposite.
In February, the People’s Bank of China injected $92 billion into the Chinese economy to boost it after abruptly abandoning the zero-Covid policy.
At the same time, Hong Kong disclosed its plans to relax cryptocurrency regulations and become an Asian hub for the industry, something mainland China seems to approve of.
The largest bank in Southeast Asia, DBS, revealed that in 2022, the amount of Bitcoin and Ethereum trading on its cryptocurrency exchange increased by 80% and 65%, respectively, and its customer base doubled.
All this positive Asian news has had a very positive impact on several Chinese-related tokens. Although they have since retracted, this pullback could be worth taking advantage of if the Chinese narrative continues.
Top Chinese coins that are in prime position to jump on positive news coming from Asia: Conflux ($CFX), NEO ($NEO), Vechain ($VET), Filecoin ($FIL), QuarkChain (QKC), SelfKey ($KEY), Flamingo (FLM), Linear Finance (LINA), IRIS Network ($IRIS)
Final thoughts
The above crypto stories won’t all unfold at the same time. Some, like AI and Chinese tokens, have already had their run but could see more positive momentum this year.
With the Ethereum upgrade on the horizon, the next few weeks will likely be most marked by LSDs and their native tokens are primed to gain strength.
When zkSync or Starknet do an airdrop, ZK tokens will gather momentum.
Create a watchlist on Trading View and closely monitor the leader - the coin with the highest market cap in each category - as it will usually lead the rally and then smaller tokens will follow.
When trading crypto, staying on top of the hottest trends lets you invest in tokens that exhibit strength versus those that show weakness.
As traders, we are constantly looking for an edge to outperform the market. Following strong crypto narratives puts you ahead of the crowd and makes you in the right token at the right time.
PS: If you want to learn how to make a consistent profit from the Metaverse in 2023 and beyond, check out my free guide How To Make Your First $1000 In The Metaverse.
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Disclaimer: This content is for educational purposes only and should not be considered as financial or any other advice. Always do your own due diligence before investing your hard-earned money.
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