The cryptocurrency bull market has paused, and selecting outstanding performing altcoins requires more caution. This article shares four key considerations for filtering potential projects: narrative heat, growth indicators, sound tokenomics, and community-first characteristics. This article is adapted from a piece by The DeFi Investor, organized, translated, and written by Tim, PANews. (Background: Can Solana's success be replicated? The market focuses on four potential altcoins) (Supplementary Background: ChatGPT's in-depth analysis: Who are the next potential coins before the altcoin bull market arrives in August?) The cryptocurrency bull market has returned, at least for now. The question is: which altcoins will deliver performance that exceeds the market? During the 2021 bull market, almost all altcoins saw surges. But the situation has changed since then, and there are now millions of new altcoins to choose from, making it necessary to filter carefully to achieve outstanding performance. In this article, I want to share my list of crypto projects and the main considerations when filtering. Let's get started: 1. Narrative Heat and User Mindshare Think about the best-performing tokens over the past 12 months. The first ones that come to mind are HYPE, VIRTUAL, and meme coins. Do they all have strong fundamentals? Platforms like HYPE do, but most of the top performers listed below certainly do not. Source: Coingecko's 2024 top cryptocurrency gains article They all share a common trait: high user mindshare on social media and a loyal group of fans tirelessly promoting them on the X platform. Moreover, the success of most top performers is also related to a strong narrative. With the popularity of AI concepts, Virtual continues to soar. Due to the viral nature of internet memes, meme coins saw their values rise dramatically from Q4 2024 to early Q1 2025. My advice is to identify currently popular narratives, search for them, and then choose tokens that have a highly active community on Twitter. 2. Growth Indicators In a bull market, market hype (unfortunately) is far more important than fundamentals. But the good news is that some projects have achieved both high visibility and strong product-market fit. If a project possesses both qualities, it could be a great investment, especially if its key indicators have recently seen explosive growth. For example, the total locked value (TVL) of the stablecoin protocol Ethena surged by 50% in the past 30 days. Meanwhile, many users and analysts on Twitter are focusing on and analyzing this project. The result? Ethena's token ENA has increased by 154% in the past month. By betting on those early projects that consistently show growth indicators (like TVL, revenue, and fees) and have significant community interest, you can make a substantial profit. I often use DeFiLlama to identify the fastest-growing projects. 3. Sound Tokenomics If you only plan to hold tokens for a few days, tokenomics won't matter much; however, if you're investing for the medium to long term, the situation is entirely different. For instance, due to early investors dumping heavily after each token unlock, the TIA token has plummeted over 90% in the past 17 months. This is why it's crucial to understand tokenomics before purchasing tokens. Key points I focus on when researching tokens: Token unlock schedule Tokenomist can track the tokenomics and unlock history of many popular tokens. Generally, I look for tokens with at least 30% circulating supply and an annual token release (i.e., inflation) capped between 20%-35%. Additionally, if there are any significant upcoming token unlocks (for example, unlocking more than 20% of the current circulating supply), I prefer not to buy that token. Token utility I always ask myself two questions: Will the token I consider purchasing benefit from the success of the protocol? Why would someone be willing to pay a higher price for it than I would? Dividend mechanisms or token buyback programs are the best options I can think of. While strong token utility is a huge advantage, it is not essential. I've seen many tokens with almost no utility perform exceptionally well. 4. Community-First A community-first project is now more important than ever. More and more people are unwilling to invest in vague, uninspiring projects and are more willing to support community-centric teams. This is one of the reasons I believe tokens like HYPE and PENGU have performed so well recently. Some characteristics of community-first cryptocurrency projects: Massive airdrops Teams consistently underpromise and overdeliver. Team-driven marketing: the team is very active on the X platform and continuously interacts with the community. Most of the token supply is allocated to the community. These are the main factors I consider when choosing tokens. Another potentially important factor that could drive up token prices is the upcoming major benefits that have yet to be reflected in the current price. Possible positive catalysts include upcoming protocol upgrades, improvements to token economic models, or the release of new products that can significantly increase project returns. Even the best assets can be a poor investment if priced too high. Be patient and wait for the right opportunity, and take appropriate action to avoid fear of missing out (FOMO) and chasing heights. 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