Bitget Research, the research arm of the Bitget cryptocurrency exchange, recently partnered with analytics platform Nansen to illuminate the path to token discovery. Their collaborative report offers a comprehensive framework for investors to navigate the complex landscape of early-stage and established tokens.
In particular, Bitget and Nansen jointly released an in-depth report on token-discovery strategies to give traders essential insights and procedures for investing in early-stage and chain governance tokens.
The research identified and explained the methodologies and metrics used to evaluate tokens at various stages. For early-stage tokens, factors such as community engagement, technological robustness, token distribution, and security are paramount.
However, established tokens with substantial market capitalization rely heavily on network activity, measured by transaction fees and total value locked, to predict price trends. Moreover, the study underscores the influence of social sentiment, as reflected in Nansen Discord data, on short-term price fluctuations.
In the report, Bitget disclosed its rigorous token listing process, which has been instrumental in its rapid user acquisition. It is characterized by evaluating market traction, community fervor, technological advancement, token economics, and security posture.
Bitget’s meticulous token listing process has led to significant user growth. In Q2 2024, Bitget attracted over 2.9 million new users and listed more than 180 tokens through new products such as PoolX and Premarket.
Gracy Chen, CEO of Bitget, emphasized the balance between aggressive and conservative listing strategies. She remarked:
“Our rigorous evaluation process, combined with Nansen’s advanced analysis, empowers traders with the knowledge needed to make informed investment decisions in the dynamic crypto space.”
Aurelie Barthere, Research Analyst at Nansen, mentioned that while Bitget focuses on community strength, security, and innovation for early-stage tokens, Nansen excels in on-chain data analysis. Nansen’s analysis confirms that TVL and fees in ETH are significant predictors of price changes.
Off-chain sentiment data from Nansen’s Alpha Discord, a premium member’s channel, gives a case study of the approach. It shows a correlation with weekly token price movements but with limited predictive power, further pointing to the necessity for a multifaceted approach to market analysis.
Many X users reacted to the report, seeing it as a significant advancement in providing traders with a thorough understanding of token-discovery strategies.
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