Understanding Project Metrics

Key metrics help evaluate a project's investment potential:

• Market Capitalization:

  • Calculated as Token Price × Circulating Supply.

  • Higher market caps generally indicate established tokens but may limit growth potential.

• Liquidity:

  • Refers to the ease of buying or selling tokens without significantly affecting the price.

  • Check liquidity pool size (on platforms like Raydium) and token volume.

• Volume:

  • Indicates the total amount of tokens traded within a specific period.

  • Higher trading volume often reflects stronger investor interest.

• Token Distribution:

  • Analyze the allocation to teams, early investors, community rewards, and liquidity pools.

  • Ideal projects have balanced, transparent distributions to avoid manipulation.

• Tokenomics:

  • Understand total supply, circulating supply, emission schedules, and inflation rates.

  • Ensure tokenomics align with long-term project sustainability.

• Community and Social Engagement:

  • Active communities can significantly influence token value.

  • Assess community size, activity level, and quality of engagement.