What is crypto narrative rotation?

The movement of capital between thematic narratives — AI to DePIN to RWA to memes to L2s — as catalysts, narratives, and risk appetites shift. Unlike equity sector rotations which move on 3–12 month cadences, crypto rotations compress into days or weeks.

How do I trade narrative rotation?

The cleanest expression is a long/short pair trade: long the outperforming narrative's top-liquid tokens, short the underperforming narrative's top-liquid tokens on perpetual futures. Captures the relative-strength spread without broad market risk. Sharpe's compare pages at /narratives/compare/[pair] show the side-by-side performance.

What's the typical holding period?

Days to weeks. Crypto rotations complete faster than equity sector rotations. Hold until the relative-strength spread compresses (the trade works) or reverses (exit the trade).

Which rotations matter most?

Three high-volume rotation pairs: risk-on vs risk-off (memes ↔ L1s), AI-adjacent (AI Agents ↔ DeFAI ↔ DePIN), and DeFi-L2 (DeFi ↔ Layer 2 ↔ Restaking). Sharpe's compare pages cover all 435 pair combinations.

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