Footprint Analytics: Let you also have the ability to become a "diamond hand"

Amanda

Data Source: Find 100x Token

There is never a shortage of opportunities in the blockchain world, fromFootprint Analytics From the data point of view, looking at the past year alone, 9 of the top 100 Tokens in terms of market value last year had a market value increase of more than 100 times.

Footprint Analytics - Major Tokens that Rose in Price 100x in the Past Year

While those new to cryptocurrencies may see the market as a gamble, there are several indicators and methods for investors to wisely look for bets "over the moon".

This article will highlight the 5 most important things to look out for when evaluating a token’s extreme growth potential. While some analysts believe in looking at pictures, others prefer to analyze macro trends, and we believe that both qualitative and quantitative methods have an important place - and Footprint Analytics can help you with both.

1. Market Cap

When it comes to Token, many people directly pay attention to Price, but ignoreMarket Cap, Market Cap is the product of Token Price and Token Supply, which is the primary indicator for investing in a certain Token and represents the total value of the Token.

Footprint Analytics - Market Cap Trend

The chart above shows that all high-growth major tokens had a long period of market cap above $10 million before their prices exploded. This suggests that you should be looking for coins that have some sustained market dynamism. However, the flip side of this is that projects with overvalued markets have a low probability of going up 100 times.

When trying Tokens that require high growth, we suggest that the market value of Tokens can be between 10 million and 50 million US dollars to balance potential risks.

2. Transaction volume

The stable transaction volume shows that users are frequently trading tokens, which is also one of the manifestations of the vitality of tokens.

andMarket Cap  andToken Pri ceTokens with high growth rate.

Footprint Analytics - Market Cap Growth Rate Ranking

Footprint Analytics - Top Tokens

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Footprint Analytics - Top Tokens Trading Volume

Taking SOL as an example, since August, although the trading volume of Token reached a peak of 15.6 billion US dollars on September 7, the trading volume basically fluctuated at 4 billion US dollars for most of the rest of the time, so it is very important to observe the long-term trend. Avoid market sentiment or whale fluctuations affecting judgment.

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Footprint Analytics - Top Tokens Trading Volume and Market Cap

As can be seen from the figure above, 85% of the top 100 Tokens by market value currently have a trading volume of not less than 20% of the market value of Token 7d, and 70% of Token7d’s trading volume of not less than 10 million U.S. dollars. 20% below market value.

3. Investment background

VC investments often represent the expectations of the capital market.

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Footprint Analytics - Some DeFi projects invested by a16z

From the data of Footprint Analytics in the above figure, we can see that most of the Token prices of the DeFi projects invested by a16z have a good increase. Following the investment trend is also a shortcut to evaluate projects.

4. The number of exchanges where Token is listed

If the number of exchanges on the line is small, or the scale of the exchange is small, it will affect its exposure, and it will also lead to insufficient liquidity and coverage of the crowd. This type of Token still needs some development time.

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Footprint Analytics - The Sandbox (SAND) Market

We can check the number of exchanges on which Token is listed on the Coingecko website.

5. Team Ability

Team background:

Team background:

• Proportion of developers: Contracts on the chain require strong development capabilities to support rapid iteration and prevent attacks. Therefore, the developers of most projects generally account for a large proportion of the team. If the team members are mainly in marketing or administrative positions, their technical strength may need more investigation.

• Team background: The founder has strong strength and resources are also important factors for the development of the project.

The evaluation dimensions are summarized as follows:

• Market value: The market value of 10 million - 50 million US dollars is a range that can be considered.

• Trading volume: more than 20% of market capitalization for a period of time (eg 30d).

• Financing: The investment projects of mature investment institutions can be used as a reference.

• Listing exchanges: the number should not be too small.

• Fundamentals of the project, the proportion of developers is high, and the background of the project founder is even stronger.

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The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.

About Footprint Analytics:

Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy the zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.

Footprint Analytics official website: https://www.footprint.network

Discord community: https://discord.gg/3HYaR6USM7

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