Bitcoin, Dogecoin Success Driven By 'Narrative And Momentum,' Report Argues

Marketing influence and entertainment narratives have emerged as the most powerful drivers of asset success in the cryptocurrency market, beating out traditional financial metrics like intrinsic value or cash flow.

This shift, noted in a recent 10x Research report, shows why protocols with outspoken founders and strong marketing personas have thrived.

What Happened: The report highlights that assets such as Dogecoin DOGE/USD, heavily influenced by Elon Musk and his media visibility, have outperformed more subdued competitors like Ethereum ETH/USD, which saw only a 6% gain over the past week compared to Bitcoin's BTC/USD 16% rise and SUI's SUI/USD 46% surge.

Analysts point out that this dynamic has fundamentally reshaped how cryptocurrency gains momentum.

“Crypto success is often driven by narrative and momentum,” the report states, emphasizing that media-driven assets can sustain excitement and demand.

For instance, SUI, led by a high-profile media figure, added $4 billion in market capitalization since the election, outperforming rivals with no major protocol advancements.

The influence of alternative media and high-profile endorsements was also evident in Dogecoin's trading activity.

Post-election, Dogecoin recorded $18 billion in trading volume, nearly 33% of its $55 billion market cap—outpacing traditional equities like Apple and Tesla in relative terms.

Also Read: 18 Republican States Sue Biden’s SEC Over Harsh Crypto Crackdown

This phenomenon aligns with the Veblen effect, a theory where higher prices create greater demand.

Figures like MicroStrategy's MSTR Michael Saylor, BlackRock's BLK Larry Fink, and former President Donald Trump, once skeptical of Bitcoin, embraced it as prices surged.

The report asserts that new capital flows not because an asset appears undervalued but because it demonstrates growth potential and market strength.

As the market navigates this narrative-driven phase, investors are encouraged to reassess their portfolios.

The report stresses the importance of capitalizing on momentum and adjusting holdings strategically to prioritize high-performing assets while sidelining weaker contenders.

For insights into how the crypto market's dynamics are evolving and what lies ahead for digital assets, tune into Benzinga's Future of Digital Assets event on Nov. 19.

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