Bitget, a cryptocurrency exchange and Web3 company partnered with Nansen Research, a blockchain analytics platform, to release a report on token-discovery strategies. This report aims to provide traders with critical insights and methodologies for investing in early-stage and chain governance tokens.
The report evaluates two primary data sets linked to token prices. For early-stage tokens, factors such as on-chain trading volume, community strength, technology, tokenomics, and security are analyzed. For established chain governance tokens, metrics like chain fees and Total Value Locked (TVL) serve as reliable price indicators. Additionally, Nansen’s social sentiment data from Discord shows a correlation with weekly token price movements, offering traders valuable investment insights.
Bitget and Nansen disclose their evaluation methodologies, focusing on off-chain metrics and market traction for early-stage tokens while utilising on-chain metrics to predict prices for established tokens. Identifying promising early-stage tokens, or ‘hidden gems,’ is particularly challenging due to limited data. Bitget’s approach, emphasizing market traction and on-chain trading volume, has led to significant user growth and the listing of over 180 tokens since April 2024 via its new products, PoolX and Premarket.
Bitget’s listing strategy balances aggressive and conservative approaches, prioritizing high-quality projects while seizing lucrative opportunities. The exchange employs a quantitative evaluation process, incorporating market traction, community sentiments, technological innovation, token economics, and ecosystem security. Bitget’s automated on-chain data monitoring system identifies trending tokens early, ensuring timely access for users.
Gracy Chen, CEO of Bitget, stated, “We aim to balance aggressive and conservative listing strategies, ensuring we prioritize high-quality projects while capturing lucrative opportunities. Our collaboration with Nansen enhances our ability to empower traders with the knowledge needed for informed investment decisions in the evolving cryptospace.”
Nansen’s research highlights the importance of TVL and fees in ETH as predictors of price changes. While social sentiment data from Nansen’s Alpha Discord channel shows some correlation with weekly token prices, the combination of on-chain, off-chain, and qualitative data offers a more comprehensive market analysis.
Aurelie Barthere, Research Analyst at Nansen, commented, “Our collaboration with Bitget provides a dual approach to token evaluation. Bitget focuses on community strength, security, and innovation for early-stage tokens, while Nansen excels in on-chain data analysis. This combined approach offers a clearer picture of a project’s true potential.”
