By combining Bitget's expertise in off-chain metrics and Nansen's expertise in on-chain data analysis, we assess the true potential of a project.
1. Several protocols, including Optimism, Sui, and Wormhole, are set to unlock their tokens next week, with a combined value exceeding $340 million. Investors should anticipate price volatility and prepare for potential market shifts. The impact of the unlock on specific tokens will vary depending on the portion of the total supply entering circulation. For instance, Optimism will unlock 31.3M tokens, which is less than 3% of the current circulating supply, compared to Wormhole, which will release 600M tokens in addition to 1.8B already in circulation.
2. Bitget employs a unique methodology to evaluate early-stage projects, considering both off-chain and on-chain metrics. The five key factors include market traction, community, technological innovation, tokenomics, and security. We aim to list promising assets swiftly but must also thoroughly assess all risks and the project's security, striking a balance between these aspects.
3. Depending on the project's growth stage, we use different metrics to assess its potential. For protocols yet to release a token or having done so recently, we rely on off-chain metrics. First, we evaluate market traction and community, considering the number of people eligible for the airdrop and the project's social media following, which helps us gauge market demand. Second, we examine the market pain points the project aims to solve, assuming that technological innovations meeting real market needs have growth potential.
4. Evaluating the community is among the first steps in assessing a project's strength. Interest from market participants and users indicates how much the product is in demand. To examine the community and verify the on-chain metrics (if there are any so far), we check Bitget's database of KOLs and top traders to see how they engage with the project. Then, we analyze Google Trends to find out how widely the project is discussed. Finally, we look at the protocol's social media (mainly X, Telegram, and Discord) to check their follower count, the post engagement rates, and other indicators.
5. We believe in transparent communication: when something goes wrong, it is crucial to remain completely honest with the community. It’s natural that when a team struggles to deliver results by the promised time, negative community sentiment arises. However, delays happen for various reasons — sometimes, projects need more time to ensure a high level of product quality, and sometimes, they need to wait out unfavorable market conditions. In any case, it is essential to communicate this transparently with the people — staying in touch and open to discussions helps build long-term trust. After all, users will appreciate the work that has been done even with the delays. The key is to communicate the issues properly.
6. AI lets us spot things that analysts cannot see with the naked eye. It can process vast amounts of data from social media, news articles, financial reports, and blockchain transactions — and reveal patterns invisible to humans. Algorithms analyze public sentiment, predict future prices based on historical data, evaluate the risk associated with particular tokens, and much more. Importantly, machine learning models continuously improve as they process more data over time.
