Community Impact on Token Price Forecasts Examined in Bitget and Nansen Study
Bitget and Nansen have released a report highlighting the critical role of community engagement in predicting token prices.
The study shows that combining on-chain metrics, like total value locked (TVL) and transaction fees, with off-chain data, such as social sentiment from Nansen’s Discord channel, provides a more accurate forecast of token movements. The research found that while TVL and ETH transaction fees are strong indicators for established tokens, early-stage tokens require a focus on market traction and community strength due to limited on-chain data.
Bitget’s listing strategy uses these insights to identify promising projects, while Nansen employs a mix of on-chain data and statistical methods to validate price predictions. Overall, the report underscores the importance of integrating both technical and social metrics for a comprehensive market analysis.
Clever Robot News Desk 30th July 2024
