Narratives that could drive the cryptomarket’s next bull cycle

Layers 2

Layers 2, an almost unavoidable category for the next bullish cycle, represent important scalability solutions for the Ethereum blockchain, one of the most widely used blockchains in the crypto ecosystem. The main role of layers 2 is to significantly reduce costs on the Ethereum blockchain, which is a major issue during network congestion. To do this, they provide an overlay to the base layer to relieve congestion and promote low-cost exchanges. In other words, they act as complementary solutions to improve the efficiency and profitability of transactions on the blockchain. These solutions are essential, in terms of adoption, for users wishing to exploit the Ethereum blockchain in a stable and affordable way.

Notable examples of layer 2 include Polygon (MATIC), Arbitrum (ARB), Optimism (OP) and Loopring (LRC).

Decentralized cloud storage

Decentralized cloud storage has been a major sector since the rise of the digital age. Traditionally dominated by giants such as Amazon, Apple iCloud, Microsoft Azure and Google Cloud, decentralized cloud storage offers decentralized storage solutions based on blockchain technology, with the advantage of increasing the security of private data. In the cloud ecosystem, where huge sums of money circulate, the emergence of cryptocurrencies linked to this field is not surprising. These crypto projects are exploring innovative solutions to meet the growing demand for decentralized storage, offering promising alternatives to traditional centralized cloud models. Ultimately, the idea of decentralized data storage is extremely attractive, offering users the chance to participate in accessible, reliable and resilient networks.

1. Some well-known examples in the field of decentralized storage include Filecoin (FIL), Storj (STORJ), Flux (FLUX) and Siacoin (SC).
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Interoperability 

Interoperability, within a complex blockchain ecosystem, aims to establish links between different blockchains, facilitating exchange and communication between them while pooling their capabilities. Currently, the undisputed leader in this field is Cosmos (ATOM), which excels in creating bridges between various blockchain networks.

Major challengers in the field of interoperability include Flux (FLUX), ICP Internet Computer Protocol (ICP), Quant (QNT), Icon (ICX), Biconomy (BICO), and Nervos Network (CKB).

Gaming

The video game market, as the highest-grossing entertainment sector, is showing increasing interest in the crypto ecosystem. This convergence offers fertile ground for the adoption of cryptos, not least because of the considerable size of the video game market. It's only natural to see crypto projects taking off in this area. Although substantial efforts remain to be made, the market is evolving rapidly. It seems undeniable that the gaming field will present multiple opportunities offered by the intersection between blockchain technology and the entertainment industry.

Some notable examples of crypto projects getting involved in the video game industry include blockchain games like Axie Infinity (AXS), blockchain platforms for games like Ultra (UOS) or metavers like Decentraland (MANA).

Privacy coins

The field of privacy corners gives rise to differences of opinion, not least because regulators have misgivings about the anonymity they offer. This characteristic can lead authorities to take steps to block such projects, highlighting the regulatory challenges facing privacy corners. However, there is also the possibility that this sector will gain in importance, particularly with a growing awareness among individuals who wish to protect their personal data. Finally, regulators are likely to react due to concerns about anonymity, but the rise in demand for data protection could counterbalance these obstacles. It remains to be seen how this dynamic will evolve as technology and attitudes to privacy evolve.

Some well-known examples of privacy coins include Monero (XMR), Oasis Network (ROSE), Secret Network (SCRT), and Beldex (BDX).

Artificial intelligence (AI)

The advent of AI-based technologies such as ChatGPT, Midjourney and DALL-E has become a familiar phenomenon. These innovations share a key commonality: AI applied to the understanding of text or images. The growing craze for AI has gone beyond mere technological fascination to spark vocations, particularly in the field of cryptocurrencies. The intersection between AI and cryptocurrencies could become a powerful narrative for the next bull cycle. AI applications such as machine learning and the mining of vast databases are becoming increasingly integrated into the crypto ecosystem.

Emerging projects such as Bittensor (TAO), Ocean Protocol (OCEAN), The Graph (GRT), and Fetch.ai (FET) illustrate this convergence, where AI is becoming a catalyst for innovation in cryptocurrencies.

Decentralized identity

Identity remains a fundamental issue on the Internet, where the need to provide identifying information to benefit from products or services is omnipresent (e.g. online shopping, administrative interactions, banking services, social networks, etc.). This Web2 logic finds a natural continuation in the Web3 world. In this new era, decentralized access to data becomes essential to interact with various protocols such as staking, cryptocurrency borrowing, transaction signing, and many others. Numerous crypto projects are emerging or gaining legitimacy in this field, as the true adoption of these technologies will inevitably involve services that simplify interactions for users while preserving the security of their private data.

Examples of crypto projects working in these areas include Polygon (MATIC) with Polygon ID, Ethereum Name Service (ENS) and myDid (SYL), which facilitates exchanges between users by means of digital identity.

Decentralized Finance (DeFi)

As we know, DeFi was a powerful narrative during the summer of 2020 propelling the cryptocurrency market bull cycle through to 2021. DeFi, a very broad field, is reshaping the financial landscape by tackling the challenges posed by centralized platforms, and more broadly, centralized finance. Platforms such as FTX and Celsius, representative of CeFi (Centralized Finance), have stimulated DeFi's quasi-exodic quest to eliminate traditional intermediaries. This move towards decentralization reflects a dynamic market, witnessing a substantial redistribution of market share from CeFi to DeFi.

DeFi is distinguished by the creation of an integrated ecosystem, incorporating decentralized platforms (DEX) such as Woo Network (WOO) and dYdX (DYDX), stablecoins such as Dai (DAI), and liquidity providers such as Curve (CRV) and Aave (AAVE).

Real World Assets (RWA)

The field of Real World Assets (RWA) is attracting increasing attention and could be a prominent narrative for the next bull cycle in the crypto market. This area has the potential to fundamentally transform the financial landscape.

RWA involve the tokenization of real assets, representing ownership rights to tangible objects such as art, commodities, real estate, and other tangible goods in the form of digital tokens on a blockchain. This procedure aims to create virtual investment vehicles linked to tangible assets on the blockchain. Tokenization of RWAs offers a simple and efficient way of representing ownership of physical assets, such as real estate, by enabling tokenized fractional ownership, where tokens represent either full ownership or fractions of ownership.

Oracles such as Chainlink (LINK), Band protocol (BAND), Tellor (RTB) and others play an indispensable role in the operation of RWAs. These protocols enable communication between the real world and the blockchain via smart contracts. For example, the blockchain doesn't directly know the prices of real assets such as petrol; oracles can provide this kind of information.

1. A concrete example of RWA tokenization is RealT, which specializes in the tokenization of real estate. In the real estate context, tokenization facilitates investment by enabling the tokenized fractionalization of a house. Investors can either own a whole token, equivalent to the complete property, or hold a fraction represented by one token among others, collectively forming the property.
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3. Other projects such as Centrifuges (CFG), Pendle (PENDLE), Maple (MPL) also show the growing expansion and adoption of tokenization of real-world assets.
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Conclusion

It's undeniable that other narratives will emerge to sculpt the next cryptocurrency bull cycle, and predicting with certainty the most powerful ones remains arduous. The dynamic and vast crypto panorama is evolving at lightning speed, offering a multitude of areas to explore in order to anticipate future developments.

The next bull market, anticipated in 2024 by some experts, is the subject of much speculation. Some point to the impact of halving expected in 2024 and the arrival of ETFs as potential catalysts. Others point to robust fundamentals, such as growing adoption and technological innovation. Particular vigilance is required with regard to elements such as the tokenization of real assets (RWA), as this could introduce novel narratives. It's not out of the question that unsuspected narratives will emerge in the months to come.

Ultimately, the diversity of narratives reflects the evolution and expansion of the market in areas with distinct needs. To seize the best opportunities, we recommend staying informed and open to new ideas.

And you, which narratives do you anticipate will be the most powerful in the next bull run on the crypto market?

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