How the Narratives Will Shift During This Bull Cycle – 2025

Nov 23, 2024 | Crypto

TLDR: How the Crypto Narratives order might play out

• Early-Cycle: Institutional adoption → Layer-2 scaling.
• Mid-Cycle: RWA tokenization → DeFi renaissance.
• Late-Cycle: AI integration → Meme coins comeback → Gaming/Metaverse → Privacy.
• Shifting Focus: The narrative order shifts from infrastructure and adoption to speculation and hype, as early-stage trends mature and new speculative trends take hold.

Each bull cycle has its own rhythm, and understanding the order in which narratives emerge helps investors and enthusiasts better position themselves for success. Whether it’s the infrastructural advancements of Layer-2s or the speculative highs of meme coins, knowing when to focus on each narrative can make a significant difference.

Emerging Narratives in the Next Crypto Bull Cycle: The Order of Events and Key Trends

As the cryptocurrency market braces for its next bull cycle, investors and enthusiasts are eager to identify which narratives will dominate the landscape. The last few bull runs saw a variety of trends, from the rise of Bitcoin ETFs to the explosion of decentralized finance (DeFi) protocols. But what’s next? What trends and narratives will capture the imagination of the market in the upcoming cycle?

Understanding the order in which these narratives emerge and evolve is crucial for anticipating where market capital may flow. Each phase of the bull cycle typically experiences a distinct shift in focus—from foundational infrastructure and institutional adoption to more speculative, high-risk trends driven by retail investors. Below is a deep dive into the most likely narratives to shape the next crypto bull cycle, explaining how and why the order is likely to shift over time.

1. Institutional Adoption of Crypto

The first and most critical narrative to shape the early stages of a bull market is institutional adoption. As major financial players—such as banks, hedge funds, and large asset managers—start to integrate crypto into their portfolios, confidence in the market grows. Institutional adoption signals that cryptocurrency is not just a speculative asset but a legitimate part of the global financial system.

In this early stage, we will likely see developments such as:

• Approval of Bitcoin and Ethereum ETFs by regulatory bodies like the SEC.
• Increased allocations in crypto by institutional investors such as BlackRock, Fidelity, and MicroStrategy.
• More corporate treasury strategies incorporating digital assets.

Once institutional money flows in, the market has the liquidity and backing to support further development.

=======> As of today, we are currently more or less at this stage <=======

2. Layer-2 Ecosystems and Scaling Solutions

Once institutional adoption gains momentum, the next narrative that emerges is the need for scalability—a natural progression in a growing market. Ethereum’s soaring gas fees during the last bull run exposed the limitations of existing blockchain infrastructures. Layer-2 solutions (like Arbitrum, Optimism, and zk-Rollups) have quickly gained traction as solutions to these problems, offering faster, cheaper transactions without sacrificing security.

In the early to mid-bull cycle, as transaction volumes increase, Layer-2 solutions will become a focal point. This is critical for:

• Enabling mass adoption by reducing costs and improving efficiency.
• Driving decentralized applications (dApps), including DeFi and NFTs, to new heights by making them more accessible to users.

Layer-2 ecosystems are thus positioned to fuel the next phase of growth in the crypto space, facilitating broader use cases for crypto products and services.

3. Real-World Asset (RWA) Tokenization

As the infrastructure for crypto grows, the next trend will be Real-World Asset (RWA) Tokenization. Tokenizing traditional assets—such as real estate, stocks, and bonds—onto the blockchain will revolutionize how assets are traded and transferred. This bridges the world of traditional finance and crypto, potentially bringing trillions of dollars worth of value into the crypto ecosystem.

In this phase, we can expect:

• Institutional players such as banks and asset managers working with tokenized assets.
• The rise of regulated tokenization platforms offering real-world asset-backed cryptocurrencies.
• Legal and regulatory clarity emerging around tokenizing real estate, securities, and other traditional assets.

This mid-cycle narrative offers a more stable, real-world application for crypto, attracting large-scale institutional investors who are more likely to adopt tokenized assets for their portfolios. It will serve as a bridge to broader acceptance and adoption of crypto beyond speculative markets.

4. Decentralized Finance (DeFi) Renaissance

After the rise of institutional adoption and tokenized real-world assets, the DeFi renaissance will dominate. Decentralized finance has already proven to be one of the most disruptive forces in the crypto world, and in the next cycle, DeFi 2.0 will likely emerge, with new protocols and financial products that continue to innovate on the original DeFi vision.

This narrative will see:

• New decentralized exchanges (DEXs) and lending protocols, such as Aave, Uniswap, and Curve.
• Synthetic assets and derivatives becoming more mainstream (ENA).
• The rise of decentralized stablecoins, yielding platforms, and innovative yield farming mechanisms.

The maturation of DeFi will provide a major value proposition for the crypto market, offering real-world financial tools that can be used globally. As the market continues to mature, decentralized finance becomes an essential narrative for retail investors and institutional players alike.

5. AI and Crypto Integration

By the late stages of a bull market, AI and crypto integration will emerge as an exciting narrative. This could take various forms, from AI-powered NFTs to decentralized AI platforms that allow anyone to leverage blockchain for machine learning and artificial intelligence tasks.

The excitement around AI has grown rapidly, and as the bull cycle matures, the market will likely start experimenting with:

• Decentralized AI services built on blockchain, allowing users to monetize their computing power.
• AI-driven NFT projects that offer dynamic, evolving digital assets.
• Projects like SingularityNET and Fetch.ai that integrate AI with blockchain for decentralized autonomous systems.

This late-cycle narrative tends to be more speculative, driven by the desire to invest in the next big thing. AI in crypto is exciting and futuristic but remains a niche use case for now, even if it gains considerable attention during the peak of a bull cycle.

6. Meme Coins and Community-Driven Tokens

It’s hard to imagine a crypto bull cycle without the return of meme coins like Dogecoin, Shiba Inu, and other community-driven tokens. Though meme coins initially exploded in popularity at the start of this bull cycle, they are likely to experience a comeback toward the end again.

Meme coins often thrive in the final speculative push, where retail investors become highly active in the market. As the bull cycle matures, meme coins will see:

• Increased speculation and price surges driven by social media hype and community efforts.
• A final retail rally that pushes prices higher in the latter stages of the bull cycle.

Meme coins have always been a part of the narrative when market sentiment is exuberant, and in the final stages of the bull cycle, they provide retail investors with a high-risk, high-reward opportunity.

7. Gaming and Metaverse Comeback

Gaming and the metaverse have already seen hype waves in previous cycles, but the comeback of this trend will likely occur toward the mid-to-late stages of the next bull market. Expect more polished, user-friendly gaming experiences that integrate blockchain for in-game economies, NFTs, and cross-platform interoperability.

The metaverse will continue to evolve as a concept, with:

• New gaming ecosystems leveraging blockchain technology to allow players to earn and trade digital assets.
• A resurgence in virtual worlds, where players can buy, sell, and trade land, digital goods, and NFTs.

The gaming and metaverse sectors will gain traction when better user experiences emerge and market interest in speculative trends wanes.

8. Privacy and Decentralization Narratives

As the market matures, privacy coins and tools that support decentralization will become increasingly important. This narrative is likely to come to the forefront in the later stages of the bull cycle, when there are concerns about regulation and surveillance.

Privacy projects like Monero, Zcash, and Tornado Cash will rise in importance as users demand greater sovereignty over their data and transactions. These tools will become central to the decentralization ethos that crypto is built on, especially when the market reaches its peak.

However, with the new administration in place, that trend might not be of concern.

Risks to Consider in the Next Crypto Bull Cycle

While the emerging narratives in the upcoming bull cycle present tremendous opportunities, they are not without significant risks. These risks are tied to both the inherent volatility of the crypto market and the evolving nature of these trends.

• Regulatory Uncertainty: As institutional adoption and RWA tokenization gain traction, they will attract greater regulatory scrutiny. Governments around the world are still figuring out how to regulate digital assets, and new regulations could stifle growth or create compliance burdens for projects and investors.
• Technological Risks: The evolution of Layer-2 scaling solutions, AI integration, and decentralized finance (DeFi) depends heavily on technological progress. Issues such as security vulnerabilities, network congestion, and protocol failures could derail adoption or lead to substantial financial losses.
• Speculative Bubbles: Meme coins, AI-powered projects, and gaming/metaverse narratives are particularly vulnerable to market speculation. These sectors can quickly experience parabolic price increases driven by hype, only to crash when market sentiment shifts. The final speculative rally can be especially risky, as retail investors may get swept up in the excitement without understanding the underlying value.
• Market Saturation: As more players enter the crypto space, the risk of market saturation increases, particularly in areas like DeFi, NFT marketplaces, and tokenized assets. Too many projects competing for attention may lead to overcrowded sectors, making it harder for any one project to dominate and reducing potential returns.
• Adoption Delays: While many of these narratives show immense promise, mass adoption is often slower than anticipated. Blockchain technologies can face significant hurdles related to user experience, network adoption, and education. Delays in the widespread use of DeFi or the tokenization of RWAs could slow down the overall market growth.

Investors should be cautious and conduct thorough due diligence as they navigate these trends. While the rewards can be substantial, the risks are equally high, and the market’s volatility demands a careful and strategic approach to capital allocation.

Lastly, this bull run will be like a game of musical chairs. Don’t hesitate to take profits—others might not, and you could find yourself holding the bags.