Report from Bitget and Nansen Discovers Power of Community in Predicting Token Prices

Crypto Industry has grown vastly, especially in the last few years. This is because of the introduction of new tokens in the market and increased user interest. Per Coinmarketcap, the crypto market’s value is now $2.44 Trillion in market cap with the greedy sentiments among investors, bringing decent gains for the investors. With that, the attention comes to the community’s prediction on the token performances and making profits. And that gets way easier now, as Bitget, a popular cryptocurrency exchange, and Web3 company, has presented a new outlook on that with its recent report. 

Bitget Collaborates With Nansen For Token Price Prediction

Bitget has recently collaborated with Nansen, a blockchain analytics platform, to reveal an interesting report on the power of the community in predicting token prices. Both of these company’s research teams have used various methods to evaluate the potential of the tokens based on the token cycles. 

This collaboration has brought insights and strategies to the traders for investing in the early stage as well as the chain governance tokens. Based on the reports, the focus points are the on-chain trading volume, tokenomics, technology, community strength, and security for the early-stage tokens. On the other hand, to predict the prices of the chain governance tokens, the focus is on the stable market capitalization, chain fees, and the Total Value Locked (TVL).

This gets more interesting as Nansen’s statistical analysis confirms TVL and Fees in ETH to be a significant predictor for price changes. However, this is with limited predictive power, showcasing the need for a multifaceted approach combining on-chain, off-chain, and qualitative data for effective market analysis.

“Our collaboration with Bitget is a two-pronged approach to token evaluation. For promising early-stage tokens, Bitget focuses on community strength, security, and innovation. Meanwhile, Nansen’s expertise lies in on-chain data analysis, where metrics like TVL and fees have proven to be strong predictors of price movements for established tokens. While social sentiment remains a factor, 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.

Bitget Gains 2.9 million New Users In Q2 2024

While hunting the best early-stage tokens, the biggest challenge is limiting on-chain data. However, the Bitget Research report has revealed market traction and on-chain trading volume as the opportunity to find the hidden gems, beating the previous constraints.

Bitget assesses tokens based on market traction, including on-chain trading volume as relevant, to offer users opportunities to invest in high-potential projects. This meticulous listing process has driven Bitget’s significant user growth, with over 2.9 million new users in Q2 2024 and more than 180 tokens listed since April via its new products PoolX and Premarket.

The crypto exchange’s token listing approach focuses on delivering maximum value with controlled risks. Additionally, by prioritizing the digital assets based on their projected growth, the exchange lists them swiftly, providing early access to a diverse range of tokens to its users.

Gracy Chen, the Chief Executive Officer of Bitget, says,

“At Bitget, we position ourselves to balance between aggressive and conservative listing strategies. We prioritize listing legitimate, high-quality projects without missing lucrative opportunities. For instance, our research team identified PEPE due to its active on-chain data, and we listed it three weeks before the biggest CEX”

She further talked about their mission to make the crypto space more efficient by empowering the decentralized traders with knowledge and helping them to make informed investment decisions. 

“By combining our rigorous evaluation process with Nansen’s advanced on-chain and social media analysis, we aim to empower decentralized traders with the knowledge needed to make informed investment decisions in the ever-evolving crypto space,” says Gracy Chen.

Final Thought

Bitget and Nansen’s collaboration has revealed the methodologies and metrics to predict the future token price. As per the report, the focus should be on the off-chain metrics and the market traction for the early-stage tokens, whereas for the established chain-governance tokens price prediction, the focus should be on the on-chain leading metrics. The Nansen analysis has also disclosed a correlation between the weekly TVL and the price prediction but also expressed the need for a multifaceted approach.