Opinion: Identifying crypto gems is hard. Here’s how the experts do it

Spotting the next big trend to take hold in the token space has always been difficult. Few saw decentralised finance coming before yield farming gained popularity in 2020. But once it took off, the market entered a period of mania dubbed “DeFi summer.” The following year, NFTs took people by surprise in a similar fashion. Landmark collections like Bored Ape Yacht Club sent the technology mainstream when few were talking about NFTs the previous year (like DeFi, NFTs also got their own “NFT summer”). 

Few saw Bored Ape Yacht Club’s stratospheric rise coming ahead of the NFT boom of 2021 (Source: Bored Ape Yacht Club)

It’s difficult to see major shifts like this on the horizon. That’s why I generally think that major tokens like Bitcoin and Ethereum are a good place for new token adopters to commence their token journey. Still, it’s hard to deny that investing in the right token early on can yield outsized returns. Spotting trends early is one of the best pathways to success in gem hunting. 

Staying engaged during token downturns 💪

People often take an interest in tokens during bull market phases. But the trick is to follow the space closely during downturns like the one we are currently experiencing. DeFi and NFTs were both born in bear markets. It’s possible that the next major development will start to take shape during this winter period too. When it comes to specific tokens, I like to look for bear market outperformers—tokens that show strength despite adverse market conditions. If interest is high in a winter period, it could explode once life returns to the space. 

“It’s a good idea to watch for key narratives as they emerge.” 

Looking for narratives 🔎

It’s also a good idea to watch for key narratives as they emerge. Examples emerging in the token ecosystem today include the growth of Layer 2, the future of crypto gaming and the Metaverse, and the importance of cross-chain interoperability. There are several prominent token projects in each of these niches. But it’s important to find the ones that have true adoption, strong teams with clear plans for the future, and sound tokenomics and fundamentals. It takes a lot of research to identify potential winners. That’s partly why we dedicated a Collection to Under the Radar Gems. We curated this Collection by identifying areas of the space with growth potential and their foremost projects. While some may fail, we want to help new adopters get an understanding of how to navigate the lesser-known realm of the token universe. 

It’s worth pointing out that it’s still early for the token movement. By that merit, there’s nothing wrong with sticking to major assets like Bitcoin and Ethereum. Or new adopters could explore the leading DeFi and NFT projects. These are some of the most important niches in the crypto ecosystem today. I think that’s unlikely to change anytime soon. 

Mel Gelderman, CEO of

Read more via CoinTelegraph here.

Please note: Investing in cryptoassets is risky. Due to the volatile nature of the cryptocurrency market, investors run the risk of losing their funds when they make an investment. Returns from cryptoasset investing are not guaranteed, therefore users should always be aware of the risks.

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