Bitget, a leading cryptocurrency exchange and Web3 innovator, has teamed up with Nansen, a premier blockchain analytics platform, to release a comprehensive report on token-discovery strategies. This groundbreaking collaboration aims to provide traders with the insights and strategies they need to make informed investments in early-stage and chain governance tokens.
The report delves into two critical datasets that influence token prices. For early-stage tokens, it focuses on on-chain trading volume, community strength, technological innovation, tokenomics, and security. When it comes to chain governance tokens with stable market caps, factors like chain fees and Total Value Locked (TVL) emerge as reliable price predictors. Additionally, social sentiment data from Nansen's Discord channel highlights a correlation with weekly token price movements, offering traders an edge in the market.
Bitget and Nansen have meticulously detailed the methodologies and metrics used to evaluate tokens at various stages. Early-stage tokens are primarily assessed using off-chain metrics and market traction, while established chain governance tokens are evaluated using on-chain metrics to forecast prices accurately.
The challenge of identifying promising early-stage tokens, or 'hidden gems,' lies in the limited availability of on-chain data. Bitget tackles this by evaluating market traction, incorporating on-chain trading volume where relevant, to provide users with opportunities to invest in high-potential projects. This approach has contributed to Bitget's impressive growth, with over 2.9 million new users in Q2 2024 and more than 180 tokens listed since April via its innovative products PoolX and Premarket.
Bitget's token listing strategy emphasizes delivering maximum value with controlled risks. By prioritizing digital assets based on their growth potential, the exchange swiftly lists them, offering early access to a diverse range of tokens. The evaluation process combines quantitative standards with extensive research, assessing market traction, community sentiments, technological innovation, token economics, and ecosystem security. Bitget's research team uses an automated on-chain data monitoring system to identify trending tokens, ensuring users have early access to promising projects through a reliable and efficient selection process.
"At Bitget, we balance aggressive and conservative listing strategies, ensuring we prioritize legitimate, high-quality projects while seizing lucrative opportunities. For example, our research team identified PEPE due to its active on-chain data, and we listed it three weeks before the biggest centralized exchange," said Gracy Chen, CEO of Bitget.
"Combining our rigorous evaluation process with Nansen’s advanced on-chain and social media analysis empowers decentralized traders to make informed investment decisions in the ever-evolving crypto space," she added.
Nansen's analysis underscores the significance of TVL and fees in ETH as predictors of price changes. While off-chain sentiment data from Nansen's Alpha Discord (premium members channel) shows some correlation with weekly token price movements, it also highlights the need for a multifaceted approach that combines on-chain, off-chain, and qualitative data for effective market analysis.
"Our collaboration with Bitget adopts a dual approach to token evaluation. For promising early-stage tokens, Bitget focuses on community strength, security, and innovation. Meanwhile, Nansen's expertise in on-chain data analysis, with metrics like TVL and fees, has proven to be strong predictors of price movements for established tokens. While social sentiment remains a factor, a comprehensive analysis of on-chain and off-chain data offers a clearer picture of a project's true potential," said Aurelie Barthere, Research Analyst at Nansen.
By leveraging their combined expertise, Bitget and Nansen aim to equip traders with the knowledge needed to navigate the dynamic cryptocurrency market confidently.
