Miles Deutscher Unveils Key Narratives Behind the Next Major Crypto Bull Run

Popular crypto analyst Miles Deutscher recently shared with his 444k followers his thoughts on how to get the most returns in the next bull run. That is, in his view, to pick the right narratives. While the last cycle was dominated by decentralised finance, also known as DeFi, and layer-1 blockchains, the coming cycle will see institutional investors pouring money into the following sectors. Here are Miles Deutscher’s top seven narratives for the coming bull run.

Decentralised Physical Infrastructure or Short DePIN

DePIN can be described as a concept that integrates physical infrastructure with decentralised technologies, particularly blockchain. This approach aims to enhance the efficiency, transparency, and security of physical systems like energy grids, transportation networks, or supply chains.

By leveraging decentralised ledgers and smart contracts, DePIN enables more autonomous, resilient, and responsive infrastructure management, often reducing reliance on centralised control and offering improved data integrity and resource allocation.

Deutscher highlights Render (RNDR), Filecoin (FIL) and Akash Network (AKT) as some examples of DePIN cryptos. Of course, there are many more, anyone interested in the field, is well advised to do their own due diligence.

Artificial Intelligence (AI)

2023 really saw AI take off and become available to many millions of users, think Chat GPT or Bard – but the sector is primed to grow exponentially over the coming years. Deutscher admits that crypto and AI have not moved much beyond initial buzzwords, but you may have seen a recent article by Ethereum co-founder Vitalik Buterin which raised some interesting points.

The article which discusses the four intersections between AI and crypto saw Bittensor (TAO), the only crypto mentioned in the article, fly sky high. Buterin envisaged the following overlapping areas:

Real World Assets aka RWAs

RWAs already have gained significant momentum and interest but Deutscher cites Larry Fink as one of the biggest bulls driving sentiment here. RWA is basically taking physical assets from the “real world” and tokenising them on the blockchain. This allows for people to invest on a smaller scale but with enhanced security. Fink believes this will transform the investment world.

Blockchain Gaming

Deutscher said that the sector which comes to mind first in terms of onboarding of millions of users, has to be gaming. The analyst believes that gaming and crypto are a real good match, because together they could be providing players with genuine, verifiable ownership of in-game assets, coupled with the capacity to offer financial rewards or benefits to game users, rather than simply draining liquidity in a self-contained in-game economy.

Crypto gaming adds 2 very important verticals to traditional gaming:

• The ability to have true, verifiable ownership over in game assets.

• The ability to financially reward/benefit users of the game, instead of purely sucking liquidity within a closed in-game economy. pic.twitter.com/Meks2jErep

— Miles Deutscher (@milesdeutscher) February 3, 2024

Deutscher says, from an investor perspective he first looks at gaming infrastructure, layer-1 and 2, SDK’s and so on. Second, gaming studios, which is a great way to tap into a diverse set of games, and lastly individual games – which carries more risk but also offers greater potential rewards.

BRC-20

BRC-20 tokens are a type of digital artefact that involves attaching JSON code to satoshis, the smallest Bitcoin unit, under an experimental standard.

Despite their experimental nature, these tokens have already achieved a market cap of over USD $2.5 billion. With increasing interest in Bitcoin due to factors like the ETF and the upcoming halving event, BRC-20 tokens are expected to gain further.

However, Deutscher points out that the BRC-20 ecosystem is still in its early stages and lacks robust infrastructure. He suggests making small investments in this area while staying alert for new projects, and notes the potential for airdrop farming opportunities due to numerous forthcoming launches.

Restaking

In simple terms, restaking involves reinvesting the rewards earned from staking Ethereum (ETH) to further stake and compound yields. This can sometimes be done across multiple chains, enhancing the potential to stack yield and receive airdrops.

Deutscher believes EigenLayer will be one of the biggest airdrops in 2024, he wrote that this is the reason so much money has flown into it.  

Zero-Knowledge or ZK

Zero-knowledge, mainly used in cryptography, is a technique where one party can confirm the truth of a statement to another without sharing any extra details beyond the fact of its truth. Recently, this method has been adopted in the crypto and blockchain space to increase privacy and security.

It enables transaction verification without disclosing any confidential data about the involved parties or the specifics of the transaction, making it particularly useful for developing cryptocurrencies focused on privacy.