How to Identify High-Potential Projects: A Guide to Altcoin Research
TechFlow Selected TechFlow Selected
How to Identify High-Potential Projects: A Guide to Altcoin Research
Reject following the herd; build your own investment logic.
Navigating Web3 tides with focused insightsAuthor: Ronin, Crypto KOL
Translation: Felix, PANews
Crypto KOL Ronin shares the secrets of successful investing he learned after becoming a venture capital analyst, and has created a guide on how to research altcoins. This guide distills four years of industry experience—strategies typically used by major VC firms. Readers can follow this step-by-step guide to determine whether they should invest in a specific token.
Discovering Tokens
No token will see significant price movement without a compelling narrative. Therefore, the first step is researching the narrative.
1. How to Research Narratives?
Two of the most practical tools are:
-
X
-
Dune
Simply search "top crypto narratives" on X or visit Dune Analytics and find the dashboard on crypto narratives created by Crypto Koryo. Type "narrative" into the search bar.
2. Selecting Tokens
Visit one of the following platforms:
-
CoinMarketCap
-
Coingecko
-
DefiLlama
Go to the "Categories" section and select tokens within each narrative.
Token Research
1. Whitepaper Analysis
-
You must understand what the project is building—at least at a fundamental level.
-
Find the whitepaper of the selected project (usually available on its official website).
2. Check Basic Information
The best platform for this is Defi Llama. Search for a project and examine the following metrics:
-
Review the "Information" tab, precise TVL, and its trend.
-
Check unlock schedules, potential sell pressure, allocation details, and whether holders intend to hold long-term.
3. Team and Advisors
Only two steps required:
-
Visit LinkedIn and locate their profiles.
-
Analyze each team member’s professional background and previous projects.
4. Partnerships and Collaborations
Search on Twitter: "{project name} partnership / collaboration / engagement".
Or
Visit the project's official Twitter account and review all listed partnerships.
On-Chain Analysis and Researching Technology and Token Use Cases
Go to "Categories" on Coingecko and select tokens within your chosen narrative:
-
New tokens launched after May 2022 (post previous bull run)
-
Overall upward price trend
-
Low MCAP (higher growth potential)
-
MCAP/FDV close to 1 (fully diluted valuation)
Visit the token’s website and go through this checklist by asking yourself:
-
What problem does this token solve?
-
Can the token’s use case scale to a larger market?
-
Does the roadmap clearly outline short-term and long-term goals?
Use Defi Llama to check if the token has shown consistent growth over 7 to 30 days in:
-
TVL
-
Trading volume
-
Stablecoin MCAP (new money entering the chain)
Check token unlocks via Token Unlocks or the whitepaper, paying attention to:
-
Major unlock events or "one-time unlocks"
-
High FDV relative to market cap
Avoid tokens with large unlocks scheduled within the next 60–90 days.
Developing a Strategy
Answering these three questions is critical:
-
Why?
-
When?
-
At what price to enter?
Here’s how to find answers:
1. Assess Social Media Hype
Look for three key indicators:
-
Widely followed by KOLs, projects, and VCs
-
Strong community sentiment
-
High potential for acquiring new users
2. Evaluate Competitors
Analyze projects that are at least 90% similar in product offering to the target project.
3. Entry Plan
-
Use a "laddering" strategy to buy tokens (dollar-cost averaging)
-
Or wait for a market crash to accumulate
Identifying Red Flags
This is the most crucial step—because in crypto, risk avoidance is key to long-term profitability.
No losses = Profit made (Golden Rule)
Diversify Investments
-
Invest in 10–20 different projects you've researched thoroughly or have strong convictions about.
-
Ideally, spread investments across different narratives and sectors.
Valuable Tools
On-chain analysis:
-
Dune (monitor all relevant metrics in projects and narratives)
-
CryptoRank.io (news aggregator, funding and unlock tracker—find comprehensive project data)
-
Nansen (track smart contract tokens and VC holdings—to monitor wallets and detect relevant purchases)
-
ApeSpace (100+ technical analysis indicators, including price alert bots and token purchase bots)
-
Bubblemaps (investigate token holders, track wallets, discover new meme coins)
Trading:
-
Etherdrops Bot: tool to track wallets and their activity (degens, VCs)
-
Mest: track smart money (holdings, purchases)
-
AlphaScan AI: AI-powered DeFi sentiment analysis to identify undervalued early-stage tokens → discover and speculate on new degen tokens
DeFi:
-
DropsTab: crypto aggregator for funding data, token unlocks, etc.
-
Blockpour: access all relevant metrics and statistics for dApps
-
Token Metrics: use AI to accurately predict and rank cryptocurrencies → assist intelligent buying decisions
-
DustSweeper: app to clean token balances and redeem ETH, extract and consolidate ETH from multiple wallets
Analysis:
-
Token Terminal: track market segments (liquid staking, derivatives)
-
Arkham: track wallet activity and market maker / VC holdings
-
Santiment: explore emerging narratives and reports
-
DappRadar: analyze dApp and NFT data across ~55 blockchains, interact with non-tokenized projects and qualify for airdrops
Others:
-
Web3 Antivirus: browser extension to prevent scams and wallet drain attacks
-
LunarCrush: connects brands, enterprises, and creators through measurable social engagement and verifiable rewards
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@DeRonin_
