Marketing Hype and Entertainment Narratives Emerge as the Most Powerful Drivers of Asset Success in the Cryptocurrency Market

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

A recent 10x Research report has highlighted the increasing role of marketing influence and entertainment narratives in driving asset success within the cryptocurrency market.

This trend is evident in the outperformance of assets with outspoken founders and strong marketing personas, as opposed to those relying solely on traditional financial metrics like intrinsic value or cash flow.

The report showcases how assets like Dogecoin (CRYPTO: DOGE), which has been heavily influenced by Elon Musk's media visibility, have outperformed more subdued competitors.

For instance, Ethereum (CRYPTO: ETH) saw only a 6% gain over the past week, compared to Bitcoin's (CRYPTO: BTC) 16% rise and SUI's (CRYPTO: SUI) 46% surge.

This dynamic has fundamentally reshaped how cryptocurrencies gain momentum.

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

For example, 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.

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

The report notes how figures like MicroStrategy's (NASDAQ: MSTR) Michael Saylor, BlackRock's (NYSE: 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 further insights into how the crypto market's dynamics are evolving and what lies ahead for digital assets, join Benzinga's Future of Digital Assets event on Nov. 19.