TL;DR

Spotting the next big crypto project before it explodes demands data, discipline and a sharp eye for real signals. This guide explores how to identify early winners by analyzing onchain metrics, tokenomics, dev activity and community traction while avoiding the common traps of hype-driven pumps and red-flag projects.

Despite the crypto space being crowded, fast-moving and full of noise, some investors manage to consistently find promising projects while they’re still under the radar.

So, how do they do it? 

Crypto trendspotters know how to read onchain data. They understand tokenomics. They read GitHub commits and follow the money. It takes more than jumping on the hype bandwagon ahead of the crowd.

This guide breaks down how to find crypto projects with real potential using lessons from past winners like Solana, Arbitrum, Chainlink and even memecoins like Pepe. Along the way, it will highlight the tools that matter, red flags to avoid and the difference between organic growth and manufactured buzz.

How the real winners took off

Solana

When Solana launched in 2020, few outside of developer circles had heard of it. But it had one big edge: speed. Solana’s proof-of-history tech made it one of the fastest chains around, and it quickly became a magnet for builders, especially in DeFi and NFTs. By 2021, its ecosystem exploded with apps like Serum and Magic Eden.

Early adopters who paid attention to onchain growth — like wallet activity and DEX volume — could see something brewing. Solana (SOL) went from under $1 to $50+ in less than a year. 

Arbitrum 

Arbitrum launched in 2021 as an Ethereum layer 2, but its big moment came with the Arbitrum (ARB) token airdrop in March 2023. At launch, Arbitrum was already processing more transactions than many layer 1s and had billions in total value locked (TVL) in decentralized applications (DApps).

Smart investors were watching. Even before the token, the signs were there: user activity, rising liquidity and growing app adoption. When ARB dropped, the pump stuck because the foundation was real.

Chainlink

Chainlink is a classic example of a project with long-term utility. It doesn’t have flashy branding or meme power, but it does one thing incredibly well: feed real-world data into smart contracts.

By 2024, it had become the backbone of much of DeFi, gaming and even tokenized real-world assets. If you were watching closely in 2019-2020, you saw LINK (LINK) getting integrated everywhere. That kind of early utility often flies under the radar — until price action catches up.

PEPE Coin (PEPE)

Let’s not pretend memes don’t matter. Pepe (PEPE) launched in 2023 with no roadmap, no utility and no VC backing. But it hit a nerve, and the internet ran with it. The coin hit a billion-dollar market cap within weeks.

That kind of run is rare — and risky. But for traders tracking social sentiment, wallet distribution and community activity, the early signals were all there. PEPE didn’t promise anything, but it delivered returns by becoming a viral moment.

How to find crypto gems early

So, how do you separate the next Solana from the next rug pull? Here’s how serious trendspotters approach it.

1. Start with onchain metrics

Public blockchains are transparent. Use that to look at:

Daily active wallets

Transaction volume

Tokenholder growth

Liquidity on decentralized exchanges (DEXs)

TVL (for DeFi projects).

If users and capital are moving in — before the token moons — that’s a great sign. Tools like Dune Analytics, Nansen and DefiLlama are your best friends here.

2. Understand the tokenomics

Ask questions like:

What’s the total supply? How much is circulating?

Are there upcoming unlocks or vesting cliffs?

Who holds the tokens, and how concentrated are the top wallets?

Is there utility? Does the token do anything?

Tokens with capped supply, smart incentives (like staking or burn mechanisms) and fair distribution models tend to do better long-term.

3. Check developer activity

Is the team actually building?

GitHub is a goldmine. Look at how often code is pushed, how many contributors are active, and whether the repo looks alive. No updates for months? Big red flag.

You don’t need to read code — just track commits and releases. Projects with real traction are always shipping.

4. Look for ecosystem signals

Are other developers building on top of it? Are DApps launching? Is liquidity growing? Are users coming back week after week?

Ecosystem growth is hard to fake, and it’s often the strongest early indicator that a project has legs.

5. Follow the community

X, Discord, Telegram, Reddit — yes, it’s noisy. But it’s also where trends start. Look beyond the price talk:

Are people actually using the product?

Are devs answering questions?

Is the tone constructive or just hype?

Use LunarCrush or Santiment to track social momentum, but always double-check it with onchain data.

Key tools to spot crypto trends

Here’s a quick rundown of the top platforms used by smart crypto trendspotters:

Top tip: Don’t just use one tool. Great traders cross-reference everything.

Crypto trend analysis 2025

A coin might be flying, but is it because people are actually using it or just talking about it? Learning to tell the difference can save you from making a bad investment. 

Signs of real traction

Steady user growth and TVL over time: If users are showing up before a token pumps — and the numbers keep climbing week over week — that’s usually a sign of substance. You’ll often see this in DeFi protocols or layer 2s gaining trust slowly, not overnight.

Code commits and product updates: A live GitHub with regular commits, active devs and visible progress means the team is building. This shows momentum and long-term focus — not just a marketing push.

More tokenholders, less whale control: When new holders join steadily — and supply isn’t all locked up by the top five wallets — it’s a healthier setup. Distributed ownership reduces the risk of rug pulls or coordinated dumps.

New integrations and ecosystem activity: If other apps are integrating the token or building on the protocol, it usually means the tech is solid and useful. This kind of network effect compounds fast and often precedes a breakout.

Liquidity that builds slowly: Gradual increases in liquidity and trading volume tend to reflect real interest. If liquidity sticks around (rather than vanishing after a pump), it’s usually organic.

Signs of manufactured hype

Sudden spikes in social mentions or trading volume with no news: If the project is everywhere on X overnight, but there’s no product update, launch or roadmap shift, be skeptical. It’s likely a coordinated shill.

Influencer spam and recycled talking points: When you see multiple anonymous influencers posting the same meme or catchphrase, that’s a signal someone’s trying to manufacture buzz.

No dev activity or roadmap: If there’s no GitHub, no changelog and the team isn’t shipping anything, it’s probably just a hype machine.

Anonymous team, outrageous promises: Combine a mystery team with claims like “100x guaranteed,” and you’re likely looking at a cash grab. Real builders let the work speak for itself.

Rule of thumb: If the price is moving and everything else — users, devs, integrations — is standing still, you’re looking at hype. But when those fundamentals are quietly ticking up in the background? That’s when it’s worth a closer look.

More red flags

Some projects look great on the surface — slick websites, trending hashtags, a fast-moving chart — but fall apart under the hood. Here are some more red flags to watch out for:

High holder concentration: If most of the token is sitting in a handful of wallets, it doesn’t take much for a price crash. Whales often buy early and dump on retail.

Unverified token contracts: A token that hasn’t been verified on Etherscan or BscScan might hide functions that allow minting, blocking wallets or draining liquidity. Always check the contract or look for an audit.

No liquidity lock or audit: If the devs control all the liquidity provider tokens and there’s no lock or time-locked contract, they can pull the rug at any moment. Similarly, no third-party audit? That’s a gamble.

Big token unlocks coming up: Large unlocks for insiders or early investors can trigger huge sell-offs. If you’re holding during a major vesting event, you could be exit liquidity. Know the schedule.

Top tip: Before you click buy, ask, Who stands to gain the most if this pumps? Who gets hurt if it dumps? If the answer points to a few insiders with heavy bags and zero accountability, walk away.

How to spot crypto trends before the crowd

The best early investors are the mechanics looking under the hood. They study token structures and unlock schedules, join communities early to catch signals firsthand, and follow the builders to see who’s actually shipping. 

Most importantly, they cross-check everything: on-chain data, social sentiment, developer activity, and liquidity. Tools like Dune, DefiLlama, Nansen and GitHub help them separate noise from substance — and spot winners before the crowd does.

Crypto rewards those who are curious, critical and a little bit contrarian. The crowd usually shows up late. If you want to find gems before they moon, you’ll need to think independently, dig deeper, and act before the narrative forms.

It’s not easy. But it’s doable. And the more you practice spotting early signals — the real ones, not the noise — the more second nature it becomes.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin futures open interest (OI) has hit record levels on crypto derivatives exchanges as traders anticipate the cryptocurrency will continue and reach new all-time highs. 

Bitcoin (BTC) futures open interest reached a peak of just over $80 billion on May 23, according to CoinGlass. It’s an increase of 30% since the start of May as derivatives speculators load up on leverage in anticipation of higher Bitcoin prices.

Open interest is the total number of outstanding futures contracts that allow traders to bet on the future price of Bitcoin, which have not been settled or closed, showing the total amount of current market speculation.

Total Bitcoin futures OI. Source: Coinglass

When OI surges, it indicates massive leveraged positions are built up in the market, with lots of traders holding large positions with borrowed money. 

If Bitcoin’s price moves against these over-leveraged positions, traders get forcibly liquidated, and the flushout can create selling pressure on Bitcoin, which can cause a rapid drop in prices and high volatility.

However, analysts suggest the surge in spot Bitcoin exchange-traded fund (ETF) inflows, which have seen more than $2.5 billion this week, can counter some of that extended leverage.

Related: Crypto perp futures coming ‘very soon,’ says CFTC’s Mersinger

Bitcoin options markets show a similar pattern with open interest over $1.5 billion at the $110,000 and $120,000 strike prices on the Deribit exchange. There is also more than $1 billion in OI at strike prices of $115,000, $125,000, and $130,000.

Around $2.76 billion worth of notional value contracts are due to expire on May 23 with a put/call ratio of 1.2%, meaning there are more short (put) sellers than longs (call), and a max pain point of $103,000, where most losses will be made on expiry, according to Deribit. 

Bitcoin options OI by strike price. Source: Deribit 

Bitcoin slips below $111,000

Meanwhile, Bitcoin has slightly lost its recent gains and briefly slipped below $111,000 on Coinbase,  according to TradingView. 

The asset has now gained almost 20% since the beginning of the year and almost 50% since its crash to $75,000 on April 7 following US President Donald Trump’s announcement of global tariffs. 

Bitcoin hit an all-time high of $112,000 on May 22 and had mostly traded just above $111,000 over the last 24 hours, but had again slipped below the level at 4:15 am UTC on May 23.

Magazine: Crypto scam hub expose stunt goes viral, Kakao detects 70K scam apps: Asia Express

A US man operating what prosecutors called a “no questions asked” cash-to-Bitcoin conversion service has been sentenced to six years behind bars and was ordered to hand over millions of dollars. 

Boston federal court Judge Richard Stearns sentenced Trung Nguyen, from Danvers, Massachusetts, to six years in prison followed by three years of supervised release, and ordered him to forfeit $1.5 million, the Boston US Attorney’s Office said on May 22. 

Prosecutors said Nguyen ran an unlicensed money-transmitting business called National Vending between September 2017 and October 2020, which used various techniques he learned in an online course to evade authorities.

As part of the course, Nguyen was taught how to conceal his actual business from banks, crypto exchanges and state authorities by masquerading as a vending machine company that accepted cash deposits, had a list of fictional suppliers, and generally avoided using the phrase “Bitcoin” where possible.

Prosecutors say Trung Nguyen operated a fake vending machine business to obscure the cash deposits he was receiving. Source: Pacer

According to prosecutors, among Nguyen’s customer base were several scam victims who were tricked into converting cash into Bitcoin (BTC) by con artists overseas, as well as a drug dealer who sent $250,000 in cash across 10 transactions in 2018.

The Justice Department said Nguyen converted more than $1 million to Bitcoin and “purposely failed” to register with the Treasury’s Financial Crimes Enforcement Network (FinCEN) despite being required to do so under federal Anti-Money Laundering regulations.

Nguyen also “failed to file Suspicious Activity Reports or Currency Transaction Reports on any of these transactions, including cash transactions of more than $10,000,” according to prosecutors.

Undercover cops sting Nguyen

Nguyen would often meet his clients in person to accept large sums of cash, which is how he was caught, prosecutors said.

A May 2023 indictment said that during several meetings with undercover law enforcement officers, he accepted cash and sent Bitcoin in return, taking just over 5% in commission.

Related: Crypto use in money laundering ‘far below’ cash — US Treasury

The indictment said Nguyen used encrypted messaging apps and “technologies that made it more difficult” to trace his Bitcoin transactions and broke up the cash deposits into smaller sums over consecutive days and at different branches of the same bank to evade notice by authorities.

Nguyen was charged with operating an unlicensed money transmitting business and two counts of money laundering. He pleaded not guilty to all charges in June 2023.

A jury convicted him in November on the unlicensed money-transmitting business charge and on just one of the money laundering charges, finding him not guilty of a separate money laundering charge.

Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis