Insights into Evaluating Early-Stage Crypto Tokens

Amid the flood of new tokens emerging daily, traders are constantly searching for those with the greatest potential.

The latest collaboration between Bitget and Nansen provides fresh insights into how to identify these valuable assets.

On July 29, Bitget, in partnership with Nansen, unveiled its new approach to evaluating early-stage tokens. The exchange has listed over 180 tokens since April 2024, many of which are still in their infancy. Without extensive on-chain data, Bitget relies on alternative metrics such as community engagement, technological advancements, and token economics.

The exchange focuses on several key factors: tokens should have a minimum of 4,000 airdrop participants, trading volumes of $1 million, and significant community activity with at least 10,000 Twitter followers and 5,000 active users on Discord or Telegram. Additionally, the tokenomics should ensure that the fully diluted valuation doesn’t exceed 20 times the total funding raised. The credibility of investors and the token’s release schedule are also critical.

Nansen’s analysis offers a different perspective for more mature tokens, using on-chain metrics to gauge market activity. Their data highlights a strong correlation between metrics such as TVL and transaction fees with token prices for major platforms like Ethereum and its layer-2 solutions. As TVL and fees rise, tokens like ETH and MATIC typically see their prices increase.

However, this correlation is less consistent for other networks such as Solana, Avalanche, and Fantom, where the relationship between on-chain data and token prices varies significantly.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.