Analysis: Which Crypto Narratives Have Performed Best in the Past Q2

Cryptocurrency is a "narrative" game. But narratives are constantly changing, and narrative trends are constantly evolving.

The second quarter of 2023 is coming to an end, and the crypto market has been pretty bearish most of the time. Which narratives performed best?

On-chain analyst Crypto Kroyo charted 20 narratives into a dashboard and analyzed the data.

• Market capitalization Top5 ---> BTC, ETH, BNB, XRP, ADA
• DeFi blue chips ---> AAVE, COMP, CRV, MKR, UNI
• Ethereum L2s ---> ARB, BOBA, MATIC, METIS, OP
• LSD ---> FIS、FXS、LIDO、RPL、SWISE
• LSD L2 ---> Asymetrix、Lybra、Parallax、Pendle、TENET
• DEX ---> CRV、GRAIL、JOE、SUSHI、UNI
• Sustainable DEX ---> DYDX, GMX, GNS, VELA, MCB
• RWA ---> CFG、CPOOL、GFI、MPL、TRU
• AI ---> AGIX、ALI、FET、OCEAN、ORAI
• GameFi ---> APE、AXS、GALA、MANA、SAND
• GambleFi ---> ARC、BCB、BETU、FUN、WINR
• Meme 1.0 ---> BONE、DOGE、ELON、FLOKI、SHIB
• Meme 2.0 ---> BOB、LADYS、PEPE、TURBO、WOJAK
• NFT ---> Azuki、Bayc、CryptoPunks、Doodles、Mayc
• Wallet ---> TWT, SFP, C98, TGT, XDEFI
• Privacy ---> NYM, SCRT, ZEC
• Actual income ---> CRV, GMX, GNS, RDNT, SNX
• Stablecoin issuers ---> FLX, FXS, LQTY, MKR, TRIBE
• Account abstraction ---> BICO, EDEN, INST, KROM, WALLET
• Application chain ---> ATOM, AVAX, OP

** Weekly Average Return **

Trading volume on DEX

Proportion of transactions per narrative

analyze

The LSD L2 narrative is the winner in the last 3 months, led by Pendle and new projects like Lybra, Tenet, etc.

Meme 2.0 has experienced a typical pump and dump, with most tokens down over 80% from their April highs.

As expected, tokens with larger market caps are less volatile, and vice versa.

However, the market rebounded last week. With Bitcoin ETFs and BlackRock fueling the market rally, DeFi blue chips are outperforming every other narrative, which is a very rare phenomenon.

RWA narratives led by Centrifuge (CGF) and Maple (MPI) also performed well.

Notably, Meme 2.0 has also seen a backlash.

Coins with larger market capitalizations largely dominate in terms of daily trading volume. Nothing special to watch. (Note that the data is from CMC, it is not clear whether transactions on DEX are included).

in conclusion

It's not a bull market yet, so we don't see a narrative clearly outperforming the general trend.

The outperformance of LSD L2 was skewed as many projects were launched in Q2, but it's still a narrative to watch.

DeFi blue chips have performed relatively well in both bearish (minor retracement over the past 3 months) and bullish (minor gains over the past few days) periods. Given the uncertainty of market conditions, it would be wise to place a higher allocation on the DeFi blue chip narrative. (CRV, AAVE, COMP...)