12 Hot Narratives for Crypto Investing in 2024

The bull market is in full swing.

With Bitcoin breaking its all-time high of $70,000, Ethereum briefly hitting $4,000 again, and the total cryptocurrency market cap reaching $2.5 trillion, history suggests we are at the beginning of an exciting period.

In a bull market, time is money - every second counts. Every decentralized finance enthusiast follows the principle of "buy first, research later". In such periods, when every piece of news affects prices, project owners often use some buzzwords vaguely in order to cater to the market heat.

This narrative table from Bankless will be your secret guide to distinguishing true information from false information and determining whether a project is truly valuable. We hope it will be a valuable resource for you to research and pick winners in this bull market.

What will be the hottest crypto investment narrative in 2024?

Decentralized AI, Restaking, Bitcoin L2, Modularity, Data Availability, DePIN, Alt L1, Intent, Interoperability, Inscription, Parallel EVM, RWA

Decentralized Artificial Intelligence

Jumping straight into the current hot topic, decentralized AI involves open-source AI systems that run on a distributed network (such as a blockchain) rather than under the control of a single organization. This approach leverages the strengths of blockchain technology to democratize AI and make it easier for everyone to access and use it.

Examples: Projects such as Bittensor, Render, Grass, etc. have created an open market where individuals can train machine learning models, contribute computing resources, and share data. This creates a more inclusive and incentivized environment for AI innovation.

Narrative: The general consensus is that the intersection of AI and crypto will be one of the themes of this cycle as it is likely the most easily understood investment opportunity by the general public.

Recommended reading:

Bankless: AI x Crypto Will Define the 2024 Bull Market

Re-pledge

Re-staking is a strategy where investors leverage their staked assets to earn additional rewards, effectively compounding returns. This is done by using staked assets on secondary platforms to participate in further staking opportunities.

Example : EigenLayer is a pioneer in the re-staking movement, enabling users to re-stake ETH that has already been staked with various liquidity staking providers. The re-staked ETH on EigenLayer will then be used within its security framework, which aims to extend Ethereum's security guarantees to other applications and blockchains.

Narrative: Restaking is expected to be one of the biggest stories of 2024, with over $11 billion already restaking on EigenLayer, positioning it as the second largest application by TVL in crypto. An entire ecosystem of applications is being designed on EigenLayer, and this growth is expected to continue.

Recommended reading:

Bankless: Risk Management at EigenLayer

Bankless's five predictions for the crypto industry in 2024: EigenLayer, airdrops, solana

Bankless: Why EigenLayer is the next billion-dollar airdrop opportunity

Bitcoin L2

Bitcoin Layer 2 solutions (Bitcoin L2) are networks or protocols built on top of the Bitcoin blockchain (L1). They aim to scale the Bitcoin network by processing transactions off-chain (outside the Bitcoin blockchain), while inheriting its security and benefiting from its network effects.

Examples : Lightning Network, Stacks, and BitVM are popular Bitcoin L2s.

Narrative : Bitcoin L2 has the potential to follow in the footsteps of Ethereum L2’s success and free up some of the idle capital on Bitcoin. This could drive wider adoption and introduce value into the Bitcoin ecosystem.

Recommended reading: Bankless: 8 Bitcoin L2s You Should Watch

Modularity

Modularity refers to a design approach to building blockchains and applications in cryptocurrencies, where the system is built using separate, specialized components, or modules. This design philosophy aims to increase the efficiency and scalability of the technology stack by isolating the functionality of each module from the other modules.

Example : In blockchain development, modularity often involves breaking the architecture into three main layers: execution, settlement, and data availability. The goal is to make blockchain cheaper and more scalable through specialization.

Different projects focus on different parts of the stack. The term was largely popularized by Celestia, which focuses on the data availability aspect of the stack, while Ethereum is recognized for its strong settlement layer and Solana is widely praised for its execution capabilities.

Narrative : One of the most prominent narratives around modularity is the concept of “modular money”; Celestia is at the forefront of the modular blockchain movement. This narrative combines several others mentioned in this list, such as the Alt L1 narrative and the DA layer, among others.

Recommended reading: Bankless: A new tool for modular Rollup

Data availability

Data availability (DA) guarantees that all data needed to verify transactions on the blockchain is accessible to anyone who needs it.

This is essential for verifying transactions and maintaining the transparency and security of the chain, as anyone can use this data to reconstruct the entire state of the chain if needed.

Example : Traditionally, rollups have relied on Ethereum to meet their data availability requirements. However, with the introduction of more cost-effective options like Celestia, EigenDA, and Avail, we are witnessing a shift where projects are beginning to adopt these new platforms to meet their data availability needs.

Narrative : The DA layer provides a new way to scale blockchains and will become the center for blockchain data publishing.

Recommended reading:

Unpacking the neglected Lego blocks of the modular future of the data availability layer

DePIN

The Decentralized Physical Infrastructure Network (DePIN) is a system for managing and coordinating real-world physical infrastructure through a decentralized network built on blockchain technology.

DePIN aims to increase efficiency and reduce infrastructure costs by distributing control and ownership to individuals who are incentivized to participate in the network.

Example : Helium has been recognized as a DePIN program, creating a decentralized wireless network that rewards individuals who contribute coverage using Helium network devices. Other notable DePIN projects include Hivemapper, which focuses on a global mapping network, and Filecoin, which provides a decentralized file storage solution.

Narrative : DePIN represents a genuine real-world use case for cryptocurrency and blockchain technology. Synergy with emerging trends, such as the integration of cryptocurrency with artificial intelligence, further enhances DePIN’s relevance. The rise of AI agents is likely to increase demand for resources that the DePIN project can efficiently and cost-effectively provide.

Recommended reading:

Solana and DePIN dual narrative, dual flywheel coin price rise model. Is the hot Helium Mobile a new Ponzi scheme?

Alt L1

Alternative layer 1 (alt L1) is a type of blockchain that positions itself as a competitor to mainstream blockchains. These blockchains aim to address the limitations of existing blockchains by taking a different technological approach to optimize unique features.

Example : During the last bull run, Solana and Avalanche became prominent Alt L1s, challenging Ethereum’s dominance as the market leader. Solana focused on high throughput, scalability, and low transaction costs, while Ethereum continued to emphasize security and decentralization.

Narrative : Alt L1 trading was the defining theme of the last cycle, with Solana, Terra, and Avalanche (often grouped as “SolLunaAvax”) at the forefront. The general consensus is that Alt L1 trading will never go away and will remain a key theme of each cycle.

In the current bull run, Solana remains the most popular, while we also have newcomers like Celestia gaining traction. The abbreviation “Solestia” has become a trending term on crypto Twitter, representing the Alt L1 narrative of the cycle.

Recommended reading: Why we are bullish on Alt L1

intention

Intent in the context of blockchain refers to the outcome or end state that a user wishes to achieve on-chain (e.g., executing a transaction, lending an asset). Rather than users performing these actions directly, the actual implementation work is delegated to third-party agents. These agents often compete in an auction-like environment for the right to implement the user's intent in the most efficient way.

Example : The DeFi ecosystem hosts a variety of intent-driven projects, including base protocols such as Anoma, Suave, Essential, applications such as Cowswap, Across, and third-party agents such as Propellerheads, Barter.

Narrative : Intent-centric protocols are at the vanguard of DeFi, generating billions in order flow. They offer significant opportunities to capture value through fees, MEV, etc. These projects also have the potential to greatly enhance the DeFi user experience, acting as an abstraction layer to simplify interactions in an increasingly complex multi-chain ecosystem.

Recommended reading:
10,000-word research report: Design principles, required elements and 4 related solutions of the "intention" center architecture

Interoperability

Interoperability refers to the ability of different blockchains to seamlessly communicate and exchange data and assets. This feature unlocks the ability for users to move assets across chains and for applications to run on multiple chains.

Examples : Projects such as LayerZero, Axelar, and Wormhole focus on facilitating data transfer between chains. Applications such as Across, Stargate, and Connext focus on asset transfers. In addition, there are liquidity aggregators such as LI.FI.

Narrative : The multi-chain thesis is playing out in real time. Today, many different blockchains have billions of dollars of value locked up in their DeFi ecosystems, serving millions of users. There is a clear need to move data and value across these chains, and this need will only increase as the number of chains increases. Projects that facilitate the exchange of data and value between chains are valuable rails for the multi-chain ecosystem.

Recommended reading: Consensys report: The mechanisms, importance, and risks of cross-chain interoperability

Inscription

Inscriptions are a technique for writing arbitrary data directly onto a single satoshi, the smallest denomination of Bitcoin (1 Bitcoin = 100,000,000 satoshis). These inscriptions, often referred to by the public as "Bitcoin NFTs," can create unique digital assets on the Bitcoin blockchain. They can also be used to mint BRC-20 tokens based on the experimental BRC-20 standard.

Examples : Bitcoin NFT collections such as NodeMonkes, Quantum Cats, and Bitcoin Puppets are well-known instances of inscriptions. These can be traded on platforms such as OKX’s Ordinals Market and Magic Eden. Leading BRC-20 tokens by market cap include ORDI, SATS, and MUBI.

Narrative : NFTs have become one of the most popular and valuable assets in cryptocurrency. Bitcoin holders now have the opportunity to expand their investment into new Bitcoin-based applications such as NFTs and BRC-20 tokens, which offers potentially significant opportunities.

Recommended reading: Bankless: A Guide to the Ordinals Series

Parallel EVM

The Parallel EVM is an innovative blockchain architecture designed to overcome the scalability challenges faced by the standard EVM. It does this by executing transactions in parallel (processing multiple independent transactions simultaneously rather than sequentially), thereby increasing throughput and improving the user experience.

Imagine a trading platform on Ethereum where each transaction is processed one after the other. In contrast, the parallel EVM will allow independent transactions to be executed simultaneously, significantly speeding up transaction processing time.

Examples : Projects such as Monad and Sei are leading the way in parallel EVM development. Other notable projects, such as BNB Chain and Scroll, have also included parallel EVM functionality in their future plans.

Narrative : The parallel EVM space is particularly promising because it leverages the established network effects and developer ecosystem of the EVM while also incorporating the parallel processing technology that contributes to Solana’s fast execution speeds. By offering a mix of EVM compatibility and high-speed transaction processing, these platforms have tremendous potential.

Recommended reading: Bankless: Why Monad has the potential to replace Ethereum?

RWA

RWAs, or real-world assets, cover a wide range of tangible and intangible assets, such as gold, real estate, commodities, stocks, and fiat currencies such as the U.S. dollar, whose intrinsic value exists outside the blockchain ecosystem. Tokenization of these assets brings them into the blockchain, providing innovative ways for their trading, management, and valuation.

Example: The best examples of tokenization of real-world assets are stablecoins such as USDC and USDT, which represent US dollars on the chain. While stablecoins are the basic application of RWA, there are many projects such as Ondo, Parcl and Mattereum that are extending this concept to various assets, including real estate, treasury bonds, gold, art, etc.

Narrative : The RWA Protocol has the potential to tokenize nearly every asset in the world and bring it to the blockchain, accessing a potential market worth hundreds of trillions of dollars. As more asset classes are tokenized, the scope of the RWA narrative is expected to expand significantly.

Recommended reading: Bankless: Tokenized U.S. Treasuries and the RWA Revolution