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Crypto Basics

What Is Proof of Stake? A Complete Guide to PoS in 2025

Learn how Proof of Stake works, why it powers modern blockchains, and how investors can earn rewards through staking in 2025
Token Metrics Team
6 min
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Introduction: Why Proof of Stake Matters

In the world of blockchain, consensus mechanisms are what keep networks secure and functional. One of the most important of these is Proof of Stake (PoS)—a model that has become the standard for next‑generation blockchains like Ethereum, Cardano, and Solana.

In 2025, PoS dominates the crypto landscape, offering a more energy‑efficient, scalable, and inclusive alternative to the older Proof of Work (PoW) model. This article breaks down how PoS works, why it matters, its benefits and risks, and how platforms like Token Metrics can help investors optimize staking strategies.

What Is Proof of Stake?

Proof of Stake is a consensus mechanism that allows blockchains to validate transactions and create new blocks based on the number of tokens held (or “staked”) by network participants.

Instead of using powerful computers to solve complex puzzles (as in Proof of Work), PoS relies on validators—individuals or entities who lock up tokens as collateral to help maintain the network.

In return, these validators earn staking rewards, making PoS not only an essential part of blockchain operations but also a way for investors to generate passive income.

How Does Proof of Stake Work?

  1. Staking Tokens:
    Participants lock up their tokens (e.g., ETH, ADA) in a wallet or staking pool.

  2. Validator Selection:
    The network algorithm selects validators to propose and confirm new blocks based on their stake size and other factors (sometimes including randomness).

  3. Block Validation:
    Validators verify transactions and add new blocks to the chain.

  4. Reward Distribution:
    Validators earn rewards in the form of newly minted tokens or transaction fees.

  5. Penalties (Slashing):
    Misbehavior—such as double‑signing or being offline—can result in losing a portion of the staked tokens, ensuring network security and accountability.

Proof of Stake vs. Proof of Work

Proof of Work (PoW):

  • Used by Bitcoin.
  • Requires high‑energy mining operations.
  • Limited scalability.

Proof of Stake (PoS):

  • Used by Ethereum (post‑Merge), Cardano, Solana, and many others.
  • Energy‑efficient—uses 99% less energy than PoW.
  • More scalable, enabling faster and cheaper transactions.

In 2025, PoS is considered the future of blockchain consensus thanks to its efficiency and accessibility.

Major PoS Blockchains in 2025

  1. Ethereum (ETH):
    Transitioned to PoS in 2022 during The Merge, allowing ETH holders to stake and earn rewards.

  2. Cardano (ADA):
    Pioneered a research‑driven PoS model (Ouroboros) for secure and sustainable blockchain growth.

  3. Solana (SOL):
    Combines PoS with Proof of History for high‑speed, low‑cost transactions.

  4. Polkadot (DOT):
    Uses a Nominated Proof of Stake (NPoS) model, letting token holders nominate validators for network security.

  5. Token Metrics AI (TMAI):
    Integrates PoS into its ecosystem while leveraging AI analytics for blockchain intelligence.

Benefits of Proof of Stake

  1. Energy Efficiency:
    PoS drastically reduces environmental impact compared to PoW mining.

  2. Accessibility:
    Anyone can stake tokens—no need for expensive mining hardware.

  3. Passive Income:
    Token holders earn rewards by participating in staking pools or running validator nodes.

  4. Decentralization & Security:
    PoS encourages broader participation, strengthening network security.

Risks of Proof of Stake

While PoS is revolutionary, it’s not without challenges:

  • Slashing Penalties: Validators who act maliciously or go offline risk losing their stake.
  • Centralization Risks: Large holders may dominate staking pools, reducing decentralization.
  • Liquidity Issues: Staked tokens are often locked for a period, limiting flexibility.
  • Regulatory Uncertainty: As staking becomes more widespread, governments are exploring potential regulations.

Platforms like Token Metrics help mitigate these risks by offering in‑depth analytics on validators, staking pools, and network activity.

How to Earn with PoS: Staking in 2025

1. Solo Staking:
Run your own validator node. This requires technical expertise and meeting minimum staking requirements (e.g., 32 ETH for Ethereum).

2. Pooled Staking:
Join staking pools that combine funds from multiple users, making it easier for beginners to participate.

3. Liquid Staking:
Use platforms like Lido or Rocket Pool to stake while maintaining liquidity through derivative tokens you can trade or use in DeFi.

4. Exchange Staking:
Centralized exchanges (e.g., Coinbase, Binance) offer simple staking options, though they often take a fee.

Using Token Metrics for PoS Insights

Token Metrics empowers PoS investors with:

  • AI‑Driven Analytics: Identify the most profitable staking opportunities.
  • Validator Ratings: Evaluate validators based on performance, uptime, and security.
  • Portfolio Optimization: Balance your staked assets across multiple blockchains.
  • Market Signals: Get alerts when staking yields or network conditions change.

This makes staking easier, safer, and more profitable for both beginners and experienced investors.

Practical Tips for PoS Investors

  1. Diversify: Stake across multiple blockchains to minimize risk.
  2. Research Validators: Choose validators with strong reputations and consistent uptime.
  3. Stay Liquid: Use liquid staking platforms for flexibility.
  4. MonitorRewards: Use Token Metrics to track real‑time staking yields and make adjustments.

The Future of Proof of Stake

In 2025, PoS is expected to power the majority of leading blockchains, supporting innovations in DeFi, NFTs, AI‑driven ecosystems, and real‑world asset tokenization.

Its combination of efficiency, scalability, and accessibility makes it the go‑to consensus mechanism for the next era of Web3 development.

Conclusion

Proof of Stake has redefined how blockchains achieve consensus, making networks more sustainable, secure, and inclusive. For investors, PoS offers an exciting opportunity to earn passive income while supporting blockchain ecosystems.

By leveraging AI‑powered analytics from Token Metrics, you can maximize staking rewards, identify top‑performing validators, and manage risk effectively.

In 2025, understanding PoS isn’t just for developers—it’s an essential tool for every crypto investor.

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About Token Metrics
Token Metrics: AI-powered crypto research and ratings platform. We help investors make smarter decisions with unbiased Token Metrics Ratings, on-chain analytics, and editor-curated “Top 10” guides. Our platform distills thousands of data points into clear scores, trends, and alerts you can act on.
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Crypto Basics

How to Find Early Stage Altcoins for 100x Returns in Jully 2025

Token Metrics Team
8 min

In the fast-moving world of crypto, finding the right early-stage altcoin could be the difference between average returns and life-changing wealth. While most traders chase trends, the smart money hunts for undervalued gems before they explode. These are called moonshots—and in this guide, you'll learn exactly how to find them using Token Metrics, the #1 AI-powered crypto research and trading platform.

What Is a Moonshot in Crypto?

A moonshot is an early-stage cryptocurrency or altcoin with high upside potential—often capable of delivering 10x, 50x, or even 100x returns if discovered before the mainstream catches on.

Moonshots typically:

  • Have low market caps (often under $50M)
  • Are in emerging sectors (AI, DePIN, Layer 2s)
  • Are backed by strong fundamentals, narrative, or tokenomics
  • Haven’t yet been listed on major centralized exchanges

The term comes from the idea of a token’s price “shooting to the moon.” But finding these tokens is not easy—unless you're using a powerful discovery engine like Token Metrics.

Why Most Traders Miss Moonshots

Most traders rely on:

  • Social media hype
  • Influencer calls
  • Discord rumors
  • Price chasing

But by the time a token hits your Twitter feed or a YouTube video, it’s often too late. The early gains are already gone.

Token Metrics solves this problem using AI-driven data analysis. Instead of following the crowd, it helps you get in before the hype.

How to Find Moonshots on Token Metrics

Token Metrics has built an entire feature called Moonshots that curates high-potential altcoins for you, powered by machine learning and 80+ data points across fundamentals, technicals, and sentiment.

Here’s how you can start spotting moonshots in minutes:

How to Use Token Metrics to Find Moonshots

Step 1: Go to the Ratings Page

  • From the Token Metrics dashboard, click the Ratings tab.
  • This is the core engine where all tokens are ranked based on Trader Grade, Investor Grade, and recent performance trends.

Step 2: Click on the “Moonshots” Tab

  • Inside the Ratings page, select the Moonshots tab at the top.
  • This filters and displays tokens that the Token Metrics AI system has flagged as potential moonshots—before they pump.

Step 3: Review Key Metrics

Each Moonshot token includes vital data to help you evaluate:

  • Trader Grade (AI prediction score for short-term upside)
  • 24H volume and market cap (for liquidity context)
  • Date of entry (when the token entered Moonshots)
  • Live ROI (real-time performance since Moonshot call)

You can also switch to Past Moonshots to view how previous picks performed over 7 or 14 days. Many have seen 100%–900% gains within days of being listed.

Step 4: Choose a Token to Explore

  • Click on any token to open its Token Details Page.
  • Dive into real-time charts, trend metrics, fundamental scores, and top wallet holders.
  • You’ll also see its Investor Grade, team insights, and code audits—helping you build conviction before investing.

Step 5: Buy in Seconds

  • Ready to act? Just click the “Buy” button on the Moonshots page.
  • This opens an embedded swap widget, letting you purchase the token directly via on-chain swap—without leaving the platform.

Why Token Metrics Moonshots Beat Traditional Research

Traditional research is slow, noisy, and often biased. Token Metrics eliminates human emotion and surfaces tokens based on:

  • AI Trend Detection: Finds breakouts before they happen.
  • Multi-Metric Analysis: Combines on-chain, technical, fundamental, and sentiment data.
  • Proven ROI: Dozens of past Moonshots have delivered 10x to 50x gains—all transparently tracked.
  • Speed & Convenience: Real-time alerts and in-app swap make execution seamless.

Pro Tips for Moonshot Hunting

  1. Focus on Low-Cap Projects: The lower the market cap, the higher the upside (and risk).
  2. Look for Fresh Entries: New entries to the Moonshots list often offer the best risk-reward.
  3. Use Custom Alerts: Set alerts by price change, grade increase, or signal triggers.
  4. Check the Narrative: DePIN, RWA, AI, Layer 2s, and Gaming are trending in mid-2025.
  5. Join the Community: Token Metrics Discord and Telegram groups often share early insights and case studies.

Getting Started with Token Metrics Moonshots

Token Metrics offers a 7-day free trial, giving you full access to the Moonshots engine, Ratings, and Signals. Here’s how to start:

  • Sign up at tokenmetrics.com
  • Navigate to Ratings → Moonshots
  • Explore current Moonshot candidates
  • Click Buy when you're ready to invest

No more chasing pumps. No more gambling on unknown tokens. Token Metrics gives you data-backed conviction for every trade.

Final Thoughts

Finding early-stage altcoins with 100x potential used to require luck, insider info, or hours of deep research. In 2025, Token Metrics Moonshots makes it possible for everyday investors to compete with the pros using AI.

If you're serious about catching the next big breakout before the crowd, Token Metrics is the tool you need. Stop guessing. Start moonshot hunting.

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How to Find New Altcoins Before They Moon in July 2025 – Token Metrics Method

Token Metrics Team
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The Ultimate Guide to Spotting Crypto Moonshots with Token Metrics

In the fast-paced world of cryptocurrency, discovering the next big altcoin before it "moons" is the difference between average gains and life-changing returns. With thousands of new tokens launching every year, the challenge lies not in finding tokens—but in finding the right tokens early. In 2025, retail and institutional investors alike are relying on advanced data, AI, and predictive analytics to uncover hidden gems. This is where Token Metrics has become the go-to platform for spotting moonshot altcoins before they take off.

In this guide, we’ll show you exactly how to find new altcoins before they moon, using a proven, AI-powered method that’s already helped thousands of investors ride the next 10x, 50x, and even 100x wave.

What Is a Moonshot in Crypto?

A moonshot is a low-cap altcoin with the potential for explosive returns. These are often newer projects with market caps under $100 million, strong fundamentals, growing narratives, and clear upside potential. Moonshots aren't about blind hype—they're about data-backed asymmetric opportunities that reward early conviction.

The goal is to identify these tokens before they hit mainstream attention or listings on major exchanges.

Why Finding Altcoins Early Matters

If you bought Ethereum at $10, Solana at $0.50, or Polygon at $0.02, your returns would be astronomical today. The crypto market is uniquely positioned to reward early adopters. But with thousands of tokens to sift through, how can you realistically find tomorrow’s winners today?

The answer lies in using Token Metrics—a platform built to identify moonshots before they pump.

The 2025 Method: Using Token Metrics to Find Moonshots

Token Metrics has developed an AI-powered rating system that scans the market 24/7, analyzing over 80+ data points per token. Their Moonshots tab is designed specifically for users looking to spot early-stage altcoins before they break out.

Here’s a step-by-step walkthrough of how to use Token Metrics to find the next altcoin moonshot:

Step 1: Go to the Ratings Page

Start from the main Token Metrics dashboard and click on the Ratings tab. This is the core area where tokens are ranked using AI-based Trader Grades. The ratings consider price performance, momentum, sentiment, volatility, volume, and dozens of other signals.

This tab is where the research begins, giving you a bird’s-eye view of tokens that are gaining traction.

Step 2: Click on the “Moonshots” Tab

Within the Ratings page, click on the Moonshots tab at the top. This is a specially curated view that filters for tokens meeting specific low-cap, high-upside criteria.

Token Metrics identifies these moonshots using proprietary algorithms that detect:

  • Undervalued tokens with rising volume
  • High potential sectors like AI, DePIN, RWAs, and new L1s
  • AI trend signals showing strong price trajectory and narrative strength

It’s like having a crypto hedge fund analyst at your fingertips—except it’s instant and always available.

Step 3: Review Key Moonshot Metrics

Each token listed in the Moonshots tab displays the following key information:

  • Trader Grade: A percentage-based score that reflects short-term trading potential
  • Change in Grade: Tracks momentum and recent upgrades
  • Market Cap: Helps you identify early-stage tokens under $100M
  • 24-Hour Volume: Indicates liquidity and market interest
  • Date of Entry: When the token was first flagged as a moonshot
  • Live ROI Since Moonshot: Real-time performance tracking to measure past picks

You can also toggle to Past Moonshots to evaluate how previous selections performed. Many tokens flagged here have posted 20–100x gains during previous cycles.

Step 4: Choose a Token to Explore

Click on any token that stands out to access its Token Details Page. This page provides a deep dive into each altcoin’s:

  • Live price chart with technical analysis overlays
  • Project fundamentals and whitepaper
  • Exchange listings and on-chain activity
  • Whale holders and top wallet addresses
  • AI-based Investor Grade for longer-term potential

This page allows you to perform your due diligence without having to leave the platform. You can compare token metrics across categories, assess community sentiment, and get a well-rounded view before investing.

Step 5: Buy in Seconds

Once you’ve identified a moonshot you’re ready to invest in, you don’t need to leave Token Metrics. Just click the Buy button directly from the Moonshots tab to open the integrated Swap Widget.

This feature allows you to execute trades instantly using your connected Web3 wallet (like MetaMask). You can swap from stablecoins like USDC or ETH directly into the altcoin of your choice, removing the need for centralized exchanges.

Bonus: Use Token Metrics GPT to Ask AI for Moonshot Picks

Token Metrics now includes Token Metrics GPT, an AI chatbot that helps you find tokens using natural language.

For example, you can ask:

  • “What are the best altcoins under $50M right now?”
  • “Which tokens have the highest ROI since being listed as a moonshot?”
  • “What moonshot tokens are trending in the DePIN sector?”

The AI will return data-backed answers in seconds, eliminating hours of research.

Tips for Finding New Altcoins Before They Moon

Here are a few extra tips to maximize your success:

  • Look at narrative trends: AI, DePIN, Modular Chains, RWAs, and SocialFi are hot in 2025.
  • Use Trader Grade momentum: Tokens with rising grades often front-run pumps.
  • Compare Past Moonshots: History doesn’t repeat—but it often rhymes.
  • Act early, not late: Buying before the crowd arrives is key to 10x+ returns.

Final Thoughts: Don’t Chase the Pump—Find It Before It Starts

Finding the next altcoin moonshot doesn’t have to be a guessing game. With tools like Token Metrics, you gain access to institutional-grade analytics, AI-generated picks, and real-time insights that help you get ahead of the market—not behind it.

The 2025 method isn’t about FOMO—it’s about strategic discovery. If you’re ready to stop chasing hype and start spotting moonshots like a pro, Token Metrics is the platform to start with.

Crypto Basics

Top 10 Crypto Venture Capital Funds for Investment in July 2025

Token Metrics Team
8 min

Crypto venture capital (VC) is evolving rapidly, driving innovation across Web3, blockchain infrastructure, DeFi, AI, and tokenized assets. As the crypto market matures, venture capital firms that identify and back high-potential projects are shaping the future of finance and technology.

In 2025, savvy investors and founders alike are turning to leading crypto VC funds for capital, connections, and credibility. These firms are not just investors—they’re ecosystem builders.

Here are the 10 best crypto venture capital funds to watch and invest alongside in 2025, whether you’re a retail investor following their portfolio, a founder raising capital, or an institutional player tracking Web3 trends.

1. Token Metrics Ventures

Overview:
Token Metrics Ventures (TMV) stands at the intersection of AI-powered analytics and high-conviction early-stage investing. Leveraging proprietary on-chain data, predictive AI models, and investor-grade metrics, TMV identifies moonshot crypto projects long before they trend.

Why It’s Hot in 2025:

  • TMV leverages data from the Token Metrics Research and Trading Platform, giving it an unparalleled edge in scouting high-alpha investments.
  • Backed successful early-stage tokens in DePIN, AI, and L2 rollup ecosystems.
  • Offers public transparency into portfolio performance through the Token Metrics Index.

Notable Investments:
Our notable investments are, Pixels, Vana, Andrena, Peaq, My Pet Hooligans, 0G Labs and Nillion. You can also add a link to our portfolio page.

Edge:
AI-first investing methodology that rivals traditional research firms, giving TMV a futuristic edge in discovering breakout assets before the herd.

2. Digital Currency Group (DCG)

Overview:
Founded in 2015, DCG is one of the earliest and most influential crypto-focused venture capital firms. DCG is the parent company of Grayscale, Foundry, and formerly CoinDesk.

Why It’s Hot in 2025:

  • Despite facing challenges in 2023–2024, DCG has restructured and returned with a sharper focus on Layer 2s, RWA tokenization, and institutional-grade infrastructure.
  • Its strategic relationship with Grayscale offers unique exposure to regulated crypto products.

Notable Investments:
Chainalysis, Circle, Fireblocks, and Coinbase (pre-IPO).

Edge:
Massive institutional network and historical pedigree as an early mover.

3. Multicoin Capital

Overview:
Multicoin Capital is a research-driven crypto VC fund focused on long-term bets in token economies, especially around smart contract platforms and DeFi.

Why It’s Hot in 2025:

  • Multicoin doubled down on Solana ecosystem plays and modular blockchain infrastructure in 2024–2025.
  • Actively invests in open-source middleware, oracle systems, and AI x crypto crossovers.

Notable Investments:
Solana, Helium, Render, and LayerZero.

Edge:
Deep thesis development, frequent publication of detailed investment memos, and contrarian bets that often pay off big.

4. Distributed Global

Overview:
Distributed Global focuses on building out foundational blockchain infrastructure, including scalability, privacy, and cross-chain interoperability.

Why It’s Hot in 2025:

  • Quietly involved in powering modular ecosystems like Celestia, EigenLayer, and Appchains.
  • Maintains a strong technical team with deep protocol-level insight.

Notable Investments:
StarkWare, zkSync, and Arweave.

Edge:
Strong technical due diligence and early backing of scalable blockchain solutions.

5. Dragonfly Capital

Overview:
Dragonfly Capital is a global venture capital firm that bridges crypto ecosystems between the U.S., Asia, and Europe.

Why It’s Hot in 2025:

  • Strong focus on liquidity provisioning, trading infrastructure, and multi-chain development.
  • Strong ties with centralized exchanges and DeFi protocols.

Notable Investments:
1inch, Amber Group, MakerDAO, and NEAR Protocol.

Edge:
Cross-border insight and the ability to scale projects globally across diverse regulatory landscapes.

6. YZi Labs (formerly Binance Labs)

Overview:
YZi Labs emerged in 2025 following the spinout and rebranding of Binance Labs. It retains the same DNA: a hyperactive investor in seed-stage Web3 startups with a strategic exchange distribution edge.

Why It’s Hot in 2025:

  • Despite regulatory shake-ups, YZi Labs has doubled down on AI x Web3, GameFi, and Real World Assets (RWA).
  • Still benefits from exchange-native insight and product-market fit validation via Binance listings.

Notable Investments:
DODO, Dune Analytics, Trust Wallet, and numerous Binance Launchpad tokens.

Edge:
Massive retail distribution power and exchange insights few others can replicate.

7. Coinbase Ventures

Overview:
Coinbase Ventures is the venture capital arm of Coinbase, one of the world’s largest and most regulated crypto exchanges.

Why It’s Hot in 2025:

  • Continues to back strategic ecosystem plays that align with Coinbase’s product roadmap and regulatory direction.
  • Focuses on identity, compliance tooling, and tokenized securities.

Notable Investments:
OpenSea, Compound, Alchemy, and BlockFi.

Edge:
Strong synergy with Coinbase product launches and listing potential for portfolio companies.

8. NGC Ventures

Overview:
NGC (Neo Global Capital) Ventures is a globally recognized fund based in Asia with a strong track record in infrastructure and protocol-level investments.

Why It’s Hot in 2025:

  • Focus on Asia-Pacific blockchain adoption trends.
  • Strong interest in DePIN, AI-powered consensus models, and zero-knowledge cryptography.

Notable Investments:
Algorand, Oasis, and Thorchain.

Edge:
Access to emerging Asian markets and strong strategic partnerships with local governments and enterprises.

9. The Spartan Group

Overview:
The Spartan Group is an Asia-based crypto VC and advisory firm, known for high-conviction investments in DeFi and Layer 1 ecosystems.

Why It’s Hot in 2025:

  • Expanded its portfolio into permissionless AI tools, modular consensus, and tokenized derivatives.
  • Maintains a boutique, high-touch approach to investments.

Notable Investments:
dYdX, Aave, Terra (before the collapse), and Pendle.

Edge:
Highly thesis-driven and nimble with an elite advisory network.

10. Polychain Capital

Overview:
Founded by Olaf Carlson-Wee, Polychain Capital is one of the largest crypto-native VC funds and remains a powerful force in the space.

Why It’s Hot in 2025:

  • Polychain continues to double down on privacy-preserving tech, zk rollups, and cross-chain solutions.
  • Early investor in bleeding-edge projects in cryptography, AI, and DAOs.

Notable Investments:
Filecoin, Avalanche, Tezos, and Compound.

Edge:
Massive AUM, strong LP network, and deep conviction in crypto’s long-term vision.

Conclusion: How to Leverage These Funds as an Investor

You don’t need to be a millionaire LP to benefit from the research and capital allocation of top crypto venture funds. Here’s how:

  • Track their portfolio: Use tools like Token Metrics, CryptoRank, and Messari to follow what these VCs are investing in.
  • Mirror their trades: Look for public tokens in their portfolios and evaluate entry points.
  • Join their ecosystems: Many funds support incubators and hackathons—ideal for developers and builders.

In 2025, VCs will be the kingmakers of crypto. By following their moves, retail investors can gain a massive edge in identifying the next moonshot projects before they explode.

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