THE BASICS TO SPOT CRYPTO NARRATIVES AND TRENDS EARLY
Ready to become an expert in spotting the next big thing in crypto? Thread ๐งต
Ready to become an expert in spotting the next big thing in crypto? Thread ๐งต
So first, what are narratives and trends?
Narratives are the stories or themes that drive a market. Trends, on the other hand, are directional movements of the market over a certain period. Think of it like the popular kids in school โ they set the trends, and the crowd follows.
Narratives are the stories or themes that drive a market. Trends, on the other hand, are directional movements of the market over a certain period. Think of it like the popular kids in school โ they set the trends, and the crowd follows.
Why spot them early? Spotting narratives and trends early can give you the edge to become one of the cool kids. Imagine catching on to the hype around AI coins or Meme coins before your uncle asked you how to invest in them. It's about being in the right place at the right time.
Now let's talk about how to spot narratives. To be honest, it's all about staying informed.
There are several places where you can get your information and do your research.
- @DefiLlama
- @DuneAnalytics
- @dexscreener
- @etherscan
- News sites
- Your favorite CT Influencer
There are several places where you can get your information and do your research.
- @DefiLlama
- @DuneAnalytics
- @dexscreener
- @etherscan
- News sites
- Your favorite CT Influencer
The first and easiest place to spot a narrative is: To read the news, yes, even the traditional news, or see what people talking about. Can you remember when ChatGPT first launched and everyone was talking about it in the traditional media? That was your narrative.
AI is nothing new, it's been around for years but was called Machine learning or deep learning, AI basically uses these two to become an AI.
There were several AI projects in crypto developing from 2019-2022 but no one was talking about them.
There were several AI projects in crypto developing from 2019-2022 but no one was talking about them.
$PEPE was another narrative that kicked off a mini meme season this year. This came almost out of nowhere and was mostly a thing on CT but PEPE & Memes was the narrative and if you followed them, you could have a good amount of $ even if you missed buying $PEPE early.
Luckily there are some great dashboards on @DuneAnalytics. To have an overview of potential and current narratives, @cryptokoryo created a pretty dope dashboard. Have a look, play around, do some research.
If you want to gamble with memes, here is a dashboard for you on @DuneAnalytics.
Currently, there is a lot of buzz around RWA (Real World Assets) on Twitter, this could be the next big thing IF the herd follows the trend, which brings us to our next important point. Spotting trends.
Spotting trends involves more analysis. Look at trading volumes, price movements, and public interest over time. It's like watching the crowd. If they're all rushing in one direction, that's where the trend is heading!
To spot trends I mainly use @DefiLlama, @etherscan, Twitter search, and again @DuneAnalytics.
I will not go too much into details of the tools since these tools deserve their own thread but we will have a quick look.
I will not go too much into details of the tools since these tools deserve their own thread but we will have a quick look.
First @DefiLlama
Check the TVL changes for protocols. You can do this by going to the "Recent" tab and filtering for TVL changes through time. Let's say you find a narrative, you check DefiLIama and it confirms that there is a trend starting. That's when you buy.
Check the TVL changes for protocols. You can do this by going to the "Recent" tab and filtering for TVL changes through time. Let's say you find a narrative, you check DefiLIama and it confirms that there is a trend starting. That's when you buy.
Second @etherscan
On Etherscan you can analyze the contract, the top token holders, and the deployer. For example, if top token holders hold more than 50% of the token, it's definitely a red flag. But i a coin is quickly gaining holders, a trend might be brewing!
On Etherscan you can analyze the contract, the top token holders, and the deployer. For example, if top token holders hold more than 50% of the token, it's definitely a red flag. But i a coin is quickly gaining holders, a trend might be brewing!
Third Twitter search
If you find a narrative and project you like, check who's talking about it. The fewer people talk about it the better because it didn't catch up yet on X.
I can remember @cryptocevo & @CryptoWizardd talking first about the AI narrative and both nailed it!
If you find a narrative and project you like, check who's talking about it. The fewer people talk about it the better because it didn't catch up yet on X.
I can remember @cryptocevo & @CryptoWizardd talking first about the AI narrative and both nailed it!
Fourth @DuneAnalytics
Similar to our research on @Etherscan, @dcfpascal_ created a great dashboard visualizing the Top holders and activity of a project, you simply need to put a token address and you are good to go!
Similar to our research on @Etherscan, @dcfpascal_ created a great dashboard visualizing the Top holders and activity of a project, you simply need to put a token address and you are good to go!
It's important to remember that these narratives and trends can change quickly. So, never invest more than you can afford to lose. Crypto is still the wild wild west and most narratives and trends in crypto have a 1-2 weeks market cycle. (mostly memes)
Not everything is a golden opportunity. Be alert for red flags like anonymous teams, unrealistic promises, and lack of transparency. Remember, if it sounds too good to be true, it probably is! ๐ฉ
So that's it! The basics of spotting narratives and trends in crypto. It's not an exact science, but with practice and diligence, you can get pretty good at it. It's a mix of strategy, luck, and staying informed.
I hope this thread helped you understand how all these shenanigans work. If you found it useful, feel free to share! And always remember... To the moon! ๐
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