An overview of the six current narratives: Where is liquidity headed next?
Author: Game , Crypto KOL
Compiled by: Felix, PANews
When markets are quiet, it’s a great time to make plans: to think carefully about what will happen next, where the narrative is taking shape, where liquidity will ultimately flow.
1. ETH staking renaissance
ETH needs a lifeline, and staking is the only narrative that can save it.
This is consistent with the current macroeconomic situation: yield is king and investors want cash flow in a bleak environment.
$LDO, $RPL are obvious proxy plays, but with a lack of timelines, timing is everything.
BlackRock CEO Larry Fink has pushed this narrative before and may do so again. With crypto-friendly regulators, incentives will come into place.
No one wants to be exposed yet: uncertainty keeps people on the sidelines, but once the right fund manager or analyst gets going, things can move fast.
Related reading: A deep dive into Ethereum issuance and destruction: a cat-and-mouse game
2. Large Token ETFs (LTC, HBAR and Betas)
$LTC, $HBAR, and $XRP are all in the ETF application process.
The narrative is most likely to be "buy on rumor, sell on news." Huge inflows are not expected, but correct positioning can still reap strong rewards.
If news announcements come out too quickly, liquidity can shift quickly and exits can become tricky. The best case scenario is to stagger approvals of ETFs so you can rotate appropriately.
Time your moves carefully and don't be the last one holding on.
Related reading: A large number of applications for copycat ETFs are coming, is a new wave of hype coming?
3. Buyback Club (Fee Switch and Buyback)
MKR previously rose 200% due to the buyback, and AAVE rose 30% in the days after the buyback was announced.
- Hyperliquid → $600 million in buybacks per year
- Jupiter → $250 million repurchase per year
- Ethena → Fee switch coming soon
With less supply, selling pressure decreases.
- Reflexivity (the circular relationship between cause and effect) comes into play: buybacks drive up prices → generate more fees → fund bigger buybacks → cycle.
- The narrative is strong: traders are rushing to buy back in, which only accelerates the entire cycle.
More protocols will follow: buybacks and fee switches are becoming the preferred strategies for price appreciation.
Trade on the news, don’t trade in the middle of a curve, don’t take profits too early, study previous price action.
Prioritize new/breaking news announcements over past ones. ($HYPE buyback was great but has played out, new catalysts are important)
Related reading: Aave joins the dividend army: over 100 million cash reserves start repurchase, or there will be favorable DeFi policies
4. RWA and Tokenization
The previous $ONDO has already started. The new "game" will take center stage.
This narrative fits perfectly with TradFi’s interest in tokenization.
Current Watchlist:
- $PLUME: A new, powerful narrative will emerge soon with mainnet launch
- $AERO: A project that most people haven’t noticed yet. If Base continues to build its own blockchain, it will be a “favorable” trading opportunity considering its strong ecological connections and recent direction change.
- $SYROP (formerly MPL): Added to Coinbase roadmap, may be listed in a few weeks.
More quality projects may emerge in the future. RWA is a category worth watching closely.
Related reading: RWA track in-depth research report: The integration path of traditional finance and crypto market
5. Robotics and possible AI 2.0 transactions
Figure AI (a company working on developing autonomous general-purpose humanoid robots) is already a leader in the humanoid robotics space. Tesla is making a big move toward automation, which is basically the entire bet for the company right now.
The narrative is simple: increased productivity = cost savings for companies, which is attractive in a slowing economy.
The risks remain high, but the meta is forming.
On-chain exposure is limited but growing, and currently mainly early infrastructure projects.
The current opportunity is to find virtual bot proxies. This has happened before: the bot itself may be completely useless, like all the junk bots, but the infrastructure is the real deal. (No need to show the substance, as long as other people are using it)
If the price is cheap enough and you have an edge in your analysis, then enter now, or watch closely and react at any time.
Related reading: Detailed explanation of the changing trends of emerging agents: AI companions and robots may have great potential
6. Participation of other sovereign states
Currently, cryptocurrency trading is entirely dependent on US decisions: policies, ETF flows, regulations.
If other T1/T2 countries intervene, it will break the US dominance and trigger a new hoarding race.
This narrative is unpredictable, but once it happens, the market will change rapidly.
Related reading: South Korea's major crypto policy trends: turning to easing, allowing legal persons to open crypto real-name accounts
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