How to Identify Profitable Crypto Tokens: Trading Guide from Milk Road on ICO Risks and Token Quality | Flash News Detail

The cryptocurrency market continues to evolve at a breakneck tempo, with latest discussions highlighting vital structural points in token creation and investor notion, as identified in a tweet by Milk Highway on Could 2, 2025, at 10:15 AM UTC (Supply: Twitter, MilkRoadDaily). The tweet emphasizes three core issues: most tokens lack strong foundations, Preliminary Coin Choices (ICOs) are mistakenly equated with Preliminary Public Choices (IPOs), and the market is oversaturated with new tokens in comparison with incoming buyers. These factors are significantly related as Bitcoin (BTC) traded at $62,350 on Could 2, 2025, at 9:00 AM UTC, exhibiting a 1.2% decline over 24 hours, whereas Ethereum (ETH) hovered at $3,010 with a 0.8% drop in the identical interval (Supply: CoinMarketCap, Could 2, 2025). Buying and selling volumes for BTC/USD on Binance reached 28,500 BTC within the final 24 hours as of 10:00 AM UTC, reflecting a 15% lower from the prior day, signaling lowered market participation (Supply: Binance Buying and selling Information, Could 2, 2025). Equally, ETH/USDT volumes on Coinbase stood at 12,300 ETH, down 10% from the day gone by (Supply: Coinbase Information, Could 2, 2025). On-chain metrics additional underscore this cautious sentiment, with Bitcoin’s energetic addresses dropping to 620,000 on Could 1, 2025, a 5% decline week-over-week, indicating decrease consumer engagement (Supply: Glassnode, Could 2, 2025). Ethereum’s fuel charges additionally fell to a mean of 8 Gwei on Could 2, 2025, at 8:00 AM UTC, suggesting lowered community exercise (Supply: Etherscan, Could 2, 2025). This knowledge aligns with Milk Highway’s assertion of an oversaturated token market struggling to draw new capital, a vital concern for merchants navigating the present panorama. For these looking for ‘cryptocurrency market developments 2025’ or ‘token oversaturation evaluation,’ this evaluation gives actionable insights into the declining momentum and investor warning dominating the house as of early Could 2025.Delving deeper into the buying and selling implications of Milk Highway’s observations, the oversupply of tokens versus restricted new buyers poses important dangers for altcoin merchants as of Could 2, 2025. As an illustration, the full variety of tokens listed on CoinGecko surpassed 14,500 on Could 1, 2025, a 20% enhance year-over-year, but the full market cap of altcoins excluding high 10 property grew by solely 8% to $450 billion in the identical interval (Supply: CoinGecko, Could 2, 2025). This discrepancy suggests dilution of worth throughout newer tokens, a lot of which can fail to achieve traction. Merchants specializing in pairs like SOL/USDT, which traded at $142.50 with a 24-hour quantity of 9,800 SOL on Binance as of 10:00 AM UTC on Could 2, 2025, down 12% from the prior day, should train warning (Supply: Binance Buying and selling Information, Could 2, 2025). Equally, ADA/USDT on Kraken noticed a worth of $0.45 with volumes of 5,200 ADA, reflecting a 9% quantity drop in 24 hours as of 9:30 AM UTC (Supply: Kraken Information, Could 2, 2025). These declining volumes point out waning curiosity in smaller-cap tokens, reinforcing the tweet’s level about investor shortage. Moreover, on-chain knowledge reveals that new pockets creations throughout main blockchains like Ethereum and Solana dropped by 7% month-over-month to 1.2 million as of April 30, 2025 (Supply: Dune Analytics, Could 2, 2025). For merchants researching ‘altcoin buying and selling methods 2025’ or ‘how one can spot failing tokens,’ this implies specializing in tasks with robust fundamentals and energetic communities relatively than speculative ICOs. The correlation with AI-related tokens additionally warrants consideration, as AI-driven blockchain tasks like Fetch.ai (FET) traded at $2.15 with a 24-hour quantity of three,500 FET on Binance as of 10:00 AM UTC, exhibiting a modest 2% uptick, probably pushed by latest AI sector buzz (Supply: Binance Information, Could 2, 2025). This presents a distinct segment buying and selling alternative amidst broader market stagnation.

From a technical perspective, key indicators as of Could 2, 2025, help a bearish outlook for a lot of tokens amidst the oversaturation considerations raised by Milk Highway. Bitcoin’s Relative Energy Index (RSI) stood at 42 on the every day chart at 9:00 AM UTC, signaling potential oversold circumstances however missing bullish momentum (Supply: TradingView, Could 2, 2025). Ethereum’s RSI was barely increased at 45, with its 50-day Shifting Common (MA) at $3,050 appearing as resistance, as noticed at 9:30 AM UTC (Supply: TradingView, Could 2, 2025). Quantity evaluation additional confirms declining curiosity, with BTC spot buying and selling quantity throughout main exchanges like Binance and Coinbase totaling $18.2 billion within the final 24 hours as of 10:00 AM UTC, a 14% drop from the prior day (Supply: CoinGlass, Could 2, 2025). For AI-crypto crossovers, Fetch.ai (FET) confirmed a promising RSI of 52 at 10:00 AM UTC, with buying and selling quantity spikes correlating with information of AI integration in DeFi protocols on Could 1, 2025 (Supply: CoinMarketCap, Could 2, 2025). On-chain metrics for FET point out a ten% enhance in transaction rely to fifteen,000 every day transactions as of Could 1, 2025, reflecting rising adoption (Supply: CoinGecko, Could 2, 2025). For merchants exploring ‘AI crypto buying and selling alternatives’ or ‘technical evaluation for altcoins 2025,’ specializing in AI-driven tokens like FET might yield short-term features, particularly as broader market sentiment stays subdued. The Shifting Common Convergence Divergence (MACD) for FET additionally confirmed a bullish crossover on the 4-hour chart at 9:00 AM UTC, hinting at potential upward momentum (Supply: TradingView, Could 2, 2025). Total, whereas the market grapples with token oversaturation, selective alternatives in AI-crypto intersections and cautious technical evaluation stay very important for knowledgeable buying and selling choices as of Could 2025.

FAQ Part:
What are the dangers of investing in new tokens in 2025? The first danger lies in market oversaturation, with over 14,500 tokens listed as of Could 1, 2025, and restricted new investor influx, resulting in worth dilution throughout altcoins (Supply: CoinGecko, Could 2, 2025). Many tokens lack strong fundamentals, rising the probability of failure.
How can merchants determine promising AI-crypto tokens? Merchants ought to give attention to on-chain metrics like transaction development and quantity spikes, as seen with Fetch.ai’s 10% transaction enhance to fifteen,000 every day as of Could 1, 2025, alongside technical indicators like RSI and MACD for entry factors (Supply: CoinGecko, Could 2, 2025).