What Crypto Narrative Do You Think the Market Is Completely Wrong About Right Now?

Every market cycle develops narratives that eventually become accepted almost as facts.

Examples from previous cycles included:

• every Layer 1 needs its own ecosystem;
• high TPS automatically creates adoption;
• every brand needs NFTs;
• blockchain gaming would onboard the next billion users;
• every DeFi token would capture protocol value;
• Bitcoin could never be accepted by traditional finance.

Some narratives failed completely.

Others were correct, but happened much later than expected.

That makes contrarian thinking useful.

Right now, the market has several widely accepted assumptions:

• institutions will continue accumulating crypto;
• stablecoins will keep growing;
• tokenization will become a major financial sector;
• Layer 2 networks will remain essential;
• Bitcoin will continue separating itself from the rest of crypto;
• AI and blockchain will eventually converge in a meaningful way.

At least some of these will probably be wrong, or correct in a very different way from what investors expect.

The difficult part is identifying which one before the market does.

What current crypto narrative do you think is fundamentally wrong or massively overvalued?

And on the opposite side, what trend do you think the market is still underestimating?