Altcoin Investment Guide: Selected Strategies for 2025

The bullish atmosphere in the crypto market seems to be returning, at least for the time being. This raises a key question: which alts might bring excess returns?

Unlike the bull market in 2021, when almost all alts were soaring, there are now millions of new alts in the market, and one must carefully choose investment targets to achieve substantial returns.

This article will share some key considerations for screening cryptocurrency projects.

1. Popularity and User Awareness

Looking back at the best-performing tokens of the past year, such as HYPE, VIRTUAL, and some meme coins, it is found that they do not all have strong fundamentals. However, they share a common point: they have a very high level of attention on social media and a group of loyal fans continuously promoting them.

Many successful cases are related to strong market narratives. For example, Virtual has continued to rise during the AI concept boom, while meme coins have benefited from internet memes from the fourth quarter of 2024 to early 2025.

It is recommended to pay attention to current trending topics and look for relevant tokens that have active communities on social platforms.

2. Growth Indicators

Although popularity often matters more than fundamentals during a bull market, an ideal investment target should have both high attention and a good product-market fit. This is especially worth noting when the project's core indicators show explosive growth.

For example, a certain stablecoin protocol saw a total locked value of (TVL) increase by 50% within 30 days, while attracting the attention of many analysts, and its token price rose by 154% within a month.

You can use data platforms to track projects that are in their early stages, have rapidly growing indicators (such as TVL, revenue, transaction fees, etc.), and possess a certain level of community interest.

3. Reasonable Token Economics

For medium to long-term investments, token economics is crucial. Here are several key considerations:

token unlock plan

• Ideally, the circulating supply should reach at least 30%.
• The annual token release amount (inflation rate) should not exceed 20%-35%
• Avoid projects with large-scale token unlocks in the near future (such as those exceeding 20% of the current circulation volume).

token utility

Consider the following questions:

• Can the token benefit from the success of the protocol?
• Why would others be willing to buy it at a higher price?

Dividend mechanisms or token buyback plans are usually better designs. However, certain tokens may still perform well even in the absence of practicality.

4. Community First

Currently, projects that focus on community are more attractive than ever. Many investors prefer to support teams that care about the community rather than vague and uninteresting projects.

The characteristics of community-first projects include:

• Conduct large-scale airdrops
• The team is good at fulfilling commitments
• The team is active on social media platforms and continuously interacts with the community.
• Allocate a large proportion of token supply to the community

Other Considerations

In addition to the points mentioned above, attention should also be paid to significant catalysts that may drive up token prices, such as upcoming protocol upgrades, improvements to the token economic model, or the launch of new products.

Finally, remember that even high-quality assets can lead to poor investment outcomes if bought at too high a price. Be patient, wait for the right entry point, and avoid blindly chasing prices.