Catching narratives
Last updated
Last updated
Crypto investitions flow in the waves of short-term or long-term events called narratives. Those who are able to spot new narratives early are usually those who profit most from them.
CoinSense gives you a toolset to identify smart money wallets' assets inflow which usually corresponds with the main narratives. You just need to analyze those investition and find out which technologies/categories/events seem promising for the next wave.
How to spot trending narrative
CoinSense allows you to check daily and weekly smart money wallets accumulations in /top_accumulations
and /top_accumulations_wow
endpoints:
First of all you can check which tokens are smart money wallets accumulating most. If you see any clear connections between them (e.g. all of the first 5 top accumulated are GambleFi projects) then they probably fit into currently trending narratives.
Once you'll see in their new narrative that they haven't discovered before and is not seen in weekly accumulations then it's probably a new narrative catching on.
To simplify this process you can also use /trending_narratives
(in last 2 days for example) endpoint which separate the main SMW investitions for you:
How to find tokens related to the narrative
Let's s the narrative is mainly based on some new "Nvidia" technology and you want to find all project somehow related to Nvidia (partners, using their tech stack,...). For this purpose there is a /search_projects
(👑 premium only) endpoint.
It's search engine that scrapes content from all project homepage and find those who fit to your search. So you can easily search for let's say:
nvidia OR graphic card OR gpu
And get in seconds the results with all projects that somehow mention at least one of the queries you specific (separated by "OR").
How to trade it
Find the main narrative player. For example in the case of TG bots when they caught a big play it was Unibot who drove the whole market. Main projects usually have a lot of liquidity and more sustainable long-term growth so even in case the narrative is trending for a while they could be good investition.
Except that if some of those projects are pumped already you can try to find smart money investitions into the small cap projects which has not been discovered by the market yet but fits into the narrative as they usually pump later.