During a bullish phase, investors or traders often face situations where most crypto assets experience price increases. However, it’s not uncommon for the crypto assets we hold to remain stagnant while others skyrocket by more than 70%. So, how can you predict which crypto will rise quickly, accurately, and effectively? This article summarizes several tips that readers can adopt to filter crypto assets with a higher potential to rise in the market.

6 Ways to Predict Which Crypto Will Rise

The crypto market is known for its volatility. To keep up with the ups and downs of market prices, you need to know several ways to predict which crypto will rise, such as:

1. Monitor Trading Volume in the Market

One of the most critical factors for a crypto asset is liquidity. The liquidity of a token can be assessed by the volume of transactions on credible open markets. Data on trading volume from credible markets unaffected by artificial activities like wash trading can provide valuable insights for analyzing a crypto asset.

The higher the organic trading volume of a crypto asset, the greater its potential to attract interest from investors and centralized exchanges that may trade the asset. Evenly distributed trading volume across multiple exchanges, without one or two exchanges dominating, indicates that the crypto asset has achieved a good level of liquidity, supporting its potential for price increases.

It’s also important for traders or investors to observe whether high trading volumes are temporary or consistent. The more consistent and widely distributed the high trading volume, the better the potential of the crypto asset. Consistent growth in trading volume and broader distribution also signal positive potential. Trading volume data for each market trading a specific token can be easily accessed on platforms like CoinGecko and CoinMarketCap.

2. Monitor User Numbers and Growth Trends

The next step you can try to predict which crypto will rise is to monitor the number of users and their growth trends. Several contexts can be explored, including:

• For Layer 1 platforms: The number of users reflects how active the network is, how many active dApps are running, and how many nodes exist.
• For utility tokens: For example, in gaming tokens, the number of users indicates how many active players are on the platform, and so on.
• For cryptocurrencies: The number of active nodes, wallets holding the coin, and similar metrics.

These data points can provide insights into the projected demand and value growth of a crypto asset. Like a startup creating a novel service, the number of users is a critical variable for validating product-market fit for the developed product or service.

In the crypto market, many projects introduce new innovations, but regardless of their quality, there is still uncertainty about their market fit. A declining user base can also be an early indicator that a crypto asset may soon be abandoned by investors.

3. Monitor Narrative Rotations and Social Media Trends

In today’s expanding crypto market, gaining investor attention is increasingly challenging for crypto asset developers. Unlike the early days of the crypto market before 2016, when only a handful of crypto assets were traded, many crypto projects now struggle to simply make their existence known to investors.

Even those that manage to gain attention often fail to sustain it, as other crypto projects may offer something more compelling. This heightened dynamic creates rapid rotations of narratives and trends. By identifying narratives gaining increasing attention, investors can improve their chances of selecting crypto assets likely to rise.

4. Observe Community Discussions

Building strong community support for a crypto project is no easy feat. Many crypto projects have thousands of community group members, but discussions are often dominated by group admins, bots, or bounty hunters.

A project with a strong, actively contributing community has greater potential for price increases. This is due to the word-of-mouth effect from community members, often amplified through social media platforms, which effectively raises awareness of the crypto asset. Community members also play a role in creating trends, and a trending crypto asset typically garners more attention, especially during a bullish phase.

Investors should also note whether community discussions focus solely on price speculation or cover the development of the project’s product. A community with many complaints about product quality, where complaints are received positively by the development team, is far better than one fixated on price movements or concerned only with whether their coin aligns with a trending narrative.

5. Check the Distribution Scale of the Crypto Asset

Is the crypto asset well-distributed to individuals genuinely supporting the project? Or is the majority of the token held by a few individuals seeking market profits without prioritizing the project’s development?

The more distributed the token ownership, the better, and vice versa. Some pre-mined tokens allocate an excessively large percentage to the development team or specific early investors, which is unfavorable for retail investors.

Bitcoin is an example of a coin with good distribution, as it allocates tokens to those who contribute to running and securing the Bitcoin blockchain, commonly known as miners. The level of token distribution can be easily viewed on websites like bitinfocharts.com.

6. Understand Roadmap Updates and New Feature Releases

How frequently does the project’s GitHub post updates, and what features or improvements are currently in progress?

If no improvements are underway or ongoing improvements remain incomplete without reasonable justification, this signals something negative. Even Bitcoin, the first crypto asset, continuously undergoes improvement efforts and frequently updates its source code, as seen on its GitHub.

How can younger crypto projects claim their development is complete? That’s highly unlikely, so this easily accessible variable can be an effective tool for analyzing a crypto asset.

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