Why Narratives Move Crypto Markets More Than Fundamentals


In crypto, price rarely moves on fundamentals alone. What truly drives momentum is narrative the story the market believes at a given moment. Whether it’s AI, Real-World Assets, Layer 2s, or memecoins, capital flows toward whatever captures attention, not necessarily what is most technologically sound.
Narratives work because they simplify complex technology into easy-to-understand stories. Once a narrative gains traction, liquidity follows, communities form, and price momentum feeds on itself. By the time fundamentals are widely discussed, much of the move has already happened.
This doesn’t mean fundamentals don’t matter. They often decide which projects survive after the hype fades. But timing entries based on narrative cycles rather than pure utility has historically proven more effective in crypto markets.
This is not financial advice. Markets move on perception as much as reality.
Do you trade based on narratives or fundamentals? Which crypto narrative do you think will dominate next?
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