Blockchain analytics platform Santiment is listing the major narratives that are likely to prevail in the crypto space this year.
Starting with non-fungible tokens (NFTs) and memecoins, Santiment says that the two crypto sub-sectors are “always primed for a sudden surge of interest.”
As an example, Santiment says that the rise in interest in the Bonk (BONK) memecoin preceded the massive price surge of Ethereum (ETH) rival Solana (SOL). BONK is a relatively new meme crypto built on Solana.
Santiment goes on to say that a surge in interest toward memecoins tends to be a signal that an existing rally in the crypto markets may be coming to an end.
“We do want to highlight the potential correlation between a strong surge in interest towards memecoins and market top conditions. By ‘strong,’ we refer to a clear signal at the data level, distinguishing it from the constant social noise that is ever-present in crypto social channels.”
The blockchain analytics platform adds that the other major narratives for crypto this year include the upcoming Bitcoin (BTC) halving and the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the US.
The halving, which slashes BTC miners’ rewards in half, is slated for April 2024.
On stablecoins and regulations, Santiment says developments about the two areas are “likely to be an ongoing factor and could signify both bottom or top events, depending on whether it is cast in a negative or positive light.”
In 2024, the blockchain analytics platform says that decentralized finance (DeFi) and decentralized autonomous organizations (DAOs) “could gain momentum at any given – or unexpected – time, given the many innovations that have occurred there”.
According to Santiment, other major narratives in 2024 will likely involve layer-2 solutions and zero-knowledge (ZK) technology. Zero-knowledge technology is cryptographic technology that enables one party to prove to another that a piece of data is true without revealing any other information.
Lastly, the analytics firm says that macroeconomic trends and narratives will continue to impact the crypto markets in 2024.
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