Selected text: Crypto Koryo
Compiled by: Deep Wave TechFlow
What does the data say about market trends and narratives in February? This article will explain in detail.
February is a big month for Bitcoin. BTC price increased by 47%, clearly outperforming other assets.
As in January, the top 5/10/20/30/50 assets by market capitalization all underperformed BTC on average, although most of the top 50 assets returned over 20%.
ETH performed slightly better than BTC.
$DOGE is the best performing asset among the Top 10. More on meme narratives later.
Among the top 50 assets by market cap, the best performing assets are: STX, UNI, GRT, FIL, RNDR, VET and IMX
Note that the worst performers this month are the best performers last month: SUI, TIA, ARB, MKR, ETC and LDO
On average, narrative-related tokens gained 38% in February (compared to -7% in January). February is the month of artificial intelligence and memes.
Among the 10 best-performing assets tracked:
AI：PAAL、AGIX、FET、CGPT、“WLD”
meme：BONK、FLOKI
15 Narrative Properties Closest to Their ATH
Compared to last month, some new coins have been added to the list: FET, BTC, STX, RNDR, FLOKI and AGIX
Highlights:
AI narrative
Bitcoin Narrative (BTC, STX, BCH)
meme narrative
Now let us compare the narrative
The 3 narratives you need to pay attention to are:
AI
Bitcoin DeFi
DePIN
In Q1/Q2 of 2024, I think the rest of the narrative is either noise that will impact your investments or will underperform.
Some unpopular narratives have short-term catalysts:
Uniswap fee mechanism switch benefits DEX
Open AI Sora benefits WLD (Identity Narrative)
I think these are short-term rather than long-term sustained narrative shifts. Therefore, I will ignore them.
Narrative rankings
Now let me introduce you to what’s new in my narrative dashboard.
We have historical representations of each narrative every month. We rank them.
Over the past 6 months, we have proportionally rewarded the best performers and punished the worst performers.
The chart tells us that the narrative on the right has been among the top 5 worst performing narratives over the past few months (NFT, Perps, Privacy, DEX, etc.). You don't want to hold these coins.
The narrative on the left is consistently in the top five.
L1
GNO was the only L1 to truly surpass BTC in February.
GNO is also the best-performing L1 token year-to-date, outperforming SUI and BTC.
It's a pattern that I've outlined a few times.
After strong performance in the fourth quarter, L1 such as SOL, AVAX, KUJI, Sui and others have underperformed recently.
L2
On the L2 side, STX dominates.
Why?
It's simple: 2 is better than 1. STX has two narratives: L2 narrative + Bitcoin narrative
Narrative traders make easy money.
artificial intelligence+meme
Artificial intelligence continues to be hot. Fet, Rndr, Ocean, Tao, etc.
Meme has also been rising rapidly recently. It’s a cliché that the meme boom represents the final leg of a bull market rally, followed by a sharp correction. I don’t know whether this experience holds true in this bull market. let us see.
what next
January through April are historically bullish months for cryptocurrencies.
I expect the bullish trend to continue over the next two months.
Trend is your friend, and it hasn't been that strong in a long time.
