According to PANews, the concept of narratives in the industry is often misunderstood and undervalued. Narratives are not just single ideas; they evolve as the market accepts and discusses them, leading to brand impressions and capital investments. Initially, a concept alone does not form a narrative; it requires multiple related projects, market focus, and user engagement to develop into one. Many people are critical of the act of creating concepts for profit rather than the narratives themselves.
Narratives must follow a logical commercial evolution. Factors such as the solidity of the technical framework, the completeness of the product system, the viability of the business model, the application of the ecosystem, market user growth rate, and future revenue expectations all play a role. Without logical consistency or sustainability, a true narrative cannot be formed. Venture capital investments and entrepreneurial efforts are based on these commercial logic deductions. While meme investments can find investment logic, they often lack the commercial logic of true narratives.
Narratives can attract market attention, innovation, funds, talent, and resources, creating a synergistic effect. Entrepreneurs pursue narratives because they facilitate financing, communication, recruitment, and resource integration, making efforts more efficient. However, scammers may exploit narratives to extract market liquidity. The commercial logic of narratives ensures that scammers must convince venture capitalists, exchanges, tech enthusiasts, researchers, key opinion leaders, and users. The prevalence of scams in the meme sector is due to the failure of commercial logic checkpoints.
Narratives evolve, extend, differentiate, and even disappear, following innovation cycles. Modular narratives have driven B-end market development but may lead to chain abstraction when overly dispersed. ZK technology, initially a technical means, becomes a new focus when homogeneous and heterogeneous chains proliferate. Restaking narratives have temporarily boosted TVL farming, but if AVS services fail to meet demand, the narrative risks disappearing. Essentially, the market does not reject narratives; it rejects narratives dominated by scams when technology, application, and business cannot deliver on investment expectations.
Narratives drive industry maturity and progress. Those that withstand the test of time are invaluable. The crypto industry has long upheld the narrative of decentralization, benefiting many in the field. While narratives can be fabricated, manipulated, or orchestrated, such narratives are short-lived. The continuous emergence, evolution, iteration, and reshuffling of narratives reflect the market's path to maturity. Rather than struggling in a desert of faith, it is better to cultivate in the oasis of narratives.