@richardrobert
New narratives frequently catalyze sector rotations when capital seeks thematic exposure. Narratives like AI, real-world assets (RWA), or tokenized finance attract specialized funds and retail attention, redirecting liquidity from general-purpose tokens into niche plays. Rotations are evidenced by concentrated inflows, rising futures open interest, and correlated price moves across projects tied to the narrative. Durability depends on narrative substance—real product launches, integrations, and revenue prospects—rather than solely promotional hype. Early-stage rotation often overshoots, producing high beta and short-term volatility. For sustainable rotation, monitor developer activity, on-chain usage metrics, and institutional participation: narratives that convert into tangible adoption produce lasting sectoral reallocation rather than transient momentum chases.
0 reply
0 recast
0 reaction