Nansen, in collaboration with Bitget, has released a report on analyzing key metrics to find the potential of a token. It includes insights on using different metrics to evaluate token potential, emphasizing off-chain and on-chain metrics.
Nansen’s blockchain analytics tool adds millions of wallet labels to existing blockchain data. Investors use its dashboards and alerts to find tokens, research them, and protect their assets. Nansen aims to change how people use and invest in the blockchain. It is an intuitive platform with sophisticated data analysis tools.
Key Takeaways from the Report
In the early stages of token development, Bitget values off-chain factors. These include community strength, tech innovation, token economics, and security. On the other hand, the best indicators of governance token values are on-chain measures such as chain fees and total value locked in the blockchain. Social emotion also heavily influences the shifts in the value of tokens.
The primary focus areas are the off-chain analytics and traction of early-stage tokens. By utilizing on-chain leading metrics, it is possible to forecast the prices of established chain governance tokens.
The report listed a few more key insights:
- Members and interactions on social media strengthen the project’s community.
- The project’s ability to solve market pain points is an example of technological innovation.
- When discussing token economics, it’s important to consider the Fully Diluted Value (FDV) in relation to growth potential.
- You can guess the price of a chain governance token by looking at its Chain Fees and Total Value Locked (TVL).Â
- It’s harder to find the key factors affecting social mood by only looking at a shorter period.Â
Together, Bitget and Nansen are building on what they do best: token listing criteria and on-chain/social media research. The objective was to provide customers with comprehensive financial information.
