Meme Coins, Narrative Coins, and Utility Tokens: How Different Narratives Drive Market Value Across Bull and Bear Cycles

With cryptocurrency, each coin is supposed to have a story. These are the narratives, as they are referred to by people and they have a great influence in the way the coins gain and lose their value. Having followed the crypto market closely as a Nigerian, I have been able to observe how such stories influence the feelings of people and how they shape their choices in investing funds.

Three of these are the most distinguished crypto assets, in terms of crypto currency: meme coins, narrative coins, and utility tokens. They all respond differently to bull and bear markets as the values that they perform are determined by what the people feel about them.

The most unpredictable and funny ones are meme coins. They tend to be founded on a joke or internet fad such as Dogecoin or Shiba Inu. Such coins do not necessarily have purposeful applications, but they get their strength in community buzz and internet coverage.

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Memes coins can go up during bull markets when individuals are enthusiastic and optimistic, as investors want fast returns and are inclined towards the entertaining aspect of the cryptocurrency. Nevertheless, during bear markets, which are characterized by fear, meme coins tend to fall at a higher rate since they are not that well-founded.

I have witnessed numerous Nigerians who hasten into meme coins during bull runs, and, hoping to become wealthy, in fact, do at least temporarily, but only a small number of them remain when the market crashes.

Narrative coins are unique in that they are constructed on trendy or well-known storylines in the crypto sector. Such coins as those associated with Artificial Intelligence (AI), decentralized finance (DeFi), or gaming may increase in popularity when these fields are under the eye of the media.

They are worth depending on the strength and believability of the narrative. During a bull cycle, individuals seek the next big narrative, and therefore narrative coins usually take the lead during the rally. However in a bear market, when the excitement wanes only the best stories will remain.

Utility tokens, in their turn, are constructed based on actual applications. They are useful in their blockchain system, like in making payments or availing services. Some of them are Ethereum (ETH) and Binance Coin (BNB). These tokens would be much better in the long term as their worth is not solely based on hype.

To sum up, I have realized that the crypto market is operated by the emotional and stories. Meme coins are fun and profitable in the short term, narrative coins are fashionable and fantasies, utility tokens are steady and worth money. Recognizing the role played by such stories to motivate people in the market is what helps investors to live through the bull and bear seasons.