Financial markets—both traditional and others—have a tendency to latch on to trending themes and the prevailing news cycle. In the dynamic and ever-evolving crypto market, Internet and social media trends play a vital role. In the past year, the crypto sphere witnessed the emergence of viral animal-themed meme coins such as MOODENG and Simon’s Cat (CAT). The cryptos mentioned skyrocketed, showcasing the power of narrative-based trading. But, what is a narrative in crypto?
What is a narrative in crypto?
A narrative is a story or idea that influences investor decisions. A crypto narrative is a story or theme that impacts crypto trading and investment decisions.
One can spot trending crypto narratives by the increasing popularity of a particular group of cryptos, driven by increased adoption and intense blockchain activity.
Here are a few examples of news that can act as catalysts:
- The rise in the popularity of AI led to a rally in AI tokens
- Increased adoption of real-world asset (RWA) tokenization boosting interest in RWA tokens.
What is narrative-based trading?
Narrative-based trading is a strategy that involves trading and investing in crypto assets based on trending news stories, evolving themes, and prevailing market sentiment. Typically, crypto narratives are shaped by social media and news outlets.
A narrative-based crypto trader needs to stay updated about the latest news and global developments. The trader will also need to anticipate the impact of a particular development on the crypto market and make timely decisions to benefit from narrative-based crypto market movements.
We have listed the top five crypto narratives and the most popular coins for all narratives.
Top five crypto narratives for 2025
As the crypto market matures, different crypto narratives are shaping the industry. The list below highlights the most impactful trends and narratives that are poised to define the crypto landscape this year. The narratives mostly center around Bitcoin, AI, and some evergreen meme coins.
Here are the top five crypto narratives of 2025, in no particular order.
Bitcoin remains the undisputed market leader
Bitcoin has remained the market leader since its inception. Over a decade since it launched in the crypto market, Bitcoin has dominated the market and as of early January 2025, Bitcoin dominance stands at a staggering 56.2%. BTC price surged by over 130% in the past year, surpassing new highs and crossing the psychological and technical barrier of $100K.
Understandably, Bitcoin remains the go-to crypto for beginners and seasoned crypto enthusiasts alike. Analysts are enthused by the crypto asset’s recent price uptrend, increasing institutional interest, and the wide adoption of Bitcoin spot ETFs. Some expect Bitcoin to hit $200K during 2025-26.
Dominance of AI cryptos
The crypto industry has witnessed waves of innovation—-think of altcoins, NFTs, and meme coins—-all of which became incredibly popular and left a lasting impression on the market. AI-driven innovation is the new kid on the block that has taken the crypto market by storm.
AI-powered blockchains and their native tokens are booming, with AI-driven blockchains like Fetch.ai and Bittensor (TAO) revolutionizing data processing in the crypto ecosystem. Amid the boom, market experts anticipate AI-based blockchains and tokens to fuel the 2025 bull market.
The party is not over for meme coins
Meme coins continue to thrive as Dogecoin (DOGE) leads the meme coin sector and figures in the list of the top 10 cryptos.
While Dogecoin leads the pack, lesser-known meme coins such as PEPE, BONK, and WIF are gaining traction. The meme coin craze began during the crypto boom of 2020-2021. However, the excitement around this space remains strong. As adoption grows and new meme coins emerge, the sector shows that it has the potential to deliver superior returns in 2025.
All eyes are on the Solana ecosystem
Solana began 2025 with a boom, leading the altcoin sector to continue its uptrend. Solana has positioned itself as a top contender in the blockchain space with its high-speed and low-cost blockchain technology. Popular for its scalability, Solana leads the dApps, DeFi platforms, and NFTs space and is driving innovation, solidifying its place in the blockchain space. The network’s native token SOL has zoomed past its previous all-time highs.
Besides, SOL token is slated to gain in price amid expectations of a Solana ETF approval in the US in 2025.
Real World Asset (RWA) Tokenization
The tokenization of real-world assets such as paintings, real estate, and commodities ensures increased security, prevents fraud, and facilitates fractional ownership of asset classes.
The real-world asset tokenization trend is taking the financial sector by storm as banks and major financial institutions have rolled out tokenized funds.
Some of the most popular blockchains used for RWA tokenization are listed below:
- ONDO
- POLYX
- PENDLE
Login to your CoinSwitch account to trade and invest in the RWA tokens.
Conclusion
Driven by blockchain technology, the crypto ecosystem is at the forefront of digital innovations. As such, crypto narratives emerge in line with the trends in the digital assets space. For year 2025, crypto narratives such as Bitcoin’s dominance, AI cryptos, meme coins, Solana ecosystem, and Real World Asset (RWA) tokenization appear set to steal the limelight.
We’ve discussed these narratives in detail, but it is up to you to evaluate the options available. Whether you choose to integrate these trends into your trading strategy or simply watch them unfold, always do your own research before making any decision.
