What are the key indicators to pay attention to?

Shanzhai Coin Investment Guide: What are the key indicators to pay attention to?
The bull market has returned (at least for now).

But the question is, which altcoins are most likely to become the best performing currencies?

In the bull market of 2021, almost every random currency is skyrocketing. However, since then, the situation has changed.

Millions of new Shanzhai coins have been launched, and now choosing the currency to purchase has become particularly important in order to make money.

In this article, I would like to share my list of cryptocurrency investments and the key points I am looking for in the project.

Narrative and market fit and high attention
Think about the best performing tokens in the past 12 months.

Some examples include HYPE, VIRTUAL, and MeMe.

Do they all have strong fundamentals? Some coins like HYPE do exist, but the vast majority of top performers listed below clearly do not.
But they have one thing in common: high social media attention and a fervent community of believers who constantly promote these coins on the X platform.

Please appreciate this article by supporting digital currencies such as USDT, BNB, ETH, and SOL. Thank you very much!

BNB Smart Chain(BEP20)Address:0xb01e8aa1b334a49b224e4ba9f84eec1e58bd5087

Tron（TRC20）Address:TS2SWtDXFmCnCV1EdFMN3A4JQ5uYWzsqTk

Ethereum(ERC20)Address:0xb01e8aa1b334a49b224e4ba9f84eec1e58bd5087

Solana Address:3L1Hc5K5QMhtEPfCen71VMAJQf4vk63DuT8S1mUD8URB

In addition, most of the best performing currencies are associated with a powerful narrative:

VIRTUAL: Price skyrockets during the rise of artificial intelligence (AI) narratives
MeMe: Rising sharply during the hot trend of meme in the fourth quarter of 2024 and the first quarter of 2025
My suggestion is to find the currently popular narrative and then search for tokens related to that narrative that have the most active X community.

Indicators of growth
Although attention (unfortunately) is far more important than fundamentals in a bull market, the good news is that some projects have both high attention and product market fit (PMF).

If you can find a project that combines both of these, it could be a great investment opportunity. Especially if the various indicators of its products have recently shown explosive growth.

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For example, the stablecoin protocol Ethena has seen a 50% increase in total lock up volume (TVL) over the past 30 days. At the same time, it has also been discussed by many people on the X platform.

What was the result? Ethena’s Token $ENA has risen 154% in the past month.
By identifying projects with indicators such as TVL/revenue/expense growth and good X platform attention as early as possible, you can earn a lot of money.

The main tool I use to discover the fastest growing projects is DeFiLlama.

Reasonable Token Economics
If you plan to buy tokens and only hold them for a few days, token economics is not that important. But for medium and long-term investments, the situation is completely different.

For example, TIA has fallen by over 90% in the past 17 months due to significant selling pressure from early investors after each token unlock, resulting in a price drop.

Therefore, it is very important to review token economics before purchasing tokens.

When researching tokens, I will pay attention to the following points:

Token to be unlocked soon
You can use Tokenomist to check the token economics and upcoming unlocking status of many popular tokens.

Generally speaking, I hope that the circulating supply accounts for at least 30% of the total supply, and the annual token issuance (i.e. inflation rate) is at most between 20-35%.

In addition, if there is a large-scale unlocking of tokens in the near future (such as unlocking equivalent to more than 20% of the current circulating supply), I will choose not to purchase the token.

Token utility
I always ask myself two questions:

Will the token I want to buy benefit from the success of the protocol?
Why would someone buy it at a higher price than me?
The profit sharing mechanism or token repurchase is, in my opinion, the best token utility.

That being said, although strong token utility is a big bonus, it is not necessary. I have seen many tokens that are almost useless still perform very well.

Community centered concept
Whether the project is community centered is now more important than ever.

More and more people are no longer willing to invest in dull, impersonal brands – they want to support teams that truly care about the community.

This is also one of the reasons why I think tokens like HYPE and PENGU have performed so well recently.

Several signs of a community centered encryption project:

Conducted large-scale airdrops
The team always keeps a low profile commitment and delivers beyond expectations
Team led marketing – the team is very active on the X platform and frequently interacts with the community
Most of the token supply is allocated to the community
These are the main factors I am looking for in tokens.

Another important factor that may drive token prices up is the upcoming major catalyst that has not yet been priced by the market.

This may include protocol upgrades, token economics improvements, or the launch of new products, all of which could significantly increase the project’s revenue.

summarize
However, please remember one thing: a good asset is still a bad investment if its price is not appropriate.

Wait for the right opportunity and don’t act impulsively due to FOMO.