What separates a good crypto index from a great one? Intelligence. Not just in how the index is structured—but in how it identifies winners and avoids losers.
That’s where Token Metrics AI Grades come in.
These powerful, predictive scores are the engine behind the platform’s dynamic indices, helping investors identify high-potential tokens across thousands of assets. In this post, we’ll explore what AI Grades are, how they work, and why they’re essential to building the best crypto index in today’s fast-moving market.
What Are Token Metrics AI Grades?
AI Grades are proprietary scores that rank tokens based on real-time performance potential using machine learning and data analysis.
There are two key types:
- Trader Grade– Short-term performance prediction (ideal for swing traders and active strategies)
- Investor Grade– Long-term strength and quality assessment (ideal for holders and long-term index strategies)
Each score ranges from 0 to 100 and is updated daily using over 80+ data points, including:
- Price momentum
- Volume trends
- On-chain activity
- Developer engagement
- Sentiment analysis
- Social buzz
- Risk and volatility metrics
Why AI Grades Matter in Index Construction
Traditional indices use simple rules like market cap or static filters. The problem? These don’t tell you which tokens are gaining strength—or losing steam.
AI Grades, however, allow the index engine to:
- Identify tokens trending upward before major price movement
- Avoid lagging or risky assets with poor momentum or sentiment
- Build allocations based on quality and opportunity, not just size
In short: AI Grades help indices think like experienced investors—only faster, more consistently, and with no emotion.
How AI Grades Power Token Metrics Indices
When building and maintaining indices, Token Metrics uses AI Grades in three key ways:
- Asset Selection
Only tokens with a rising Trader or Investor Grade are considered for inclusion. This ensures that the index is always focused on current leaders, not just top market cap projects.
- Weight Allocation
Tokens with higher scores get greater weight, while lower-scoring tokens are reduced or excluded. This keeps capital concentrated where it matters most.
- Rebalancing Logic
When a token’s grade drops significantly—or another token’s grade spikes—the index rebalances automatically. No need to wait for a monthly rebalance window.
Real-World Example: AI Grades in Action
Let’s say you’re following the AI Thematic Index on Token Metrics. The index originally includes:
- FET (Trader Grade: 84)
- AGIX (Trader Grade: 79)
- OCEAN (Trader Grade: 75)
As the AI narrative heats up, new data shows:
- AKT’s Trader Grade surging to 87
- OCEAN’s grade falling below 65
Token Metrics’ AI logic:
- Reduces OCEAN’s weight
- Adds or increases AKT
- Maintains exposure to outperformers while phasing out weakening positions
This real-time intelligence helps capture upside and protect against losses—something traditional indices can’t do.
Benefits of AI Grade-Powered Indices
✅ More Accurate Token Selection
Finds breakout tokens earlier than static models
✅ Dynamic Allocation
Capital flows to assets with the best potential
✅ Reduced Drawdowns
Underperformers get rotated out faster
✅ Theme and Sector Agnostic
Works across AI, DeFi, Memes, RWAs, and more
✅ Backtested and Transparent
You can track performance vs. other strategies historically
Why It Beats Basic Metrics
Most platforms give you data: price, volume, volatility. But they leave the interpretation up to you.
Token Metrics gives you actionable intelligence in the form of AI Grades—ranked, scored, and ready to plug into an index strategy.
It’s the difference between having raw ingredients and being served a fully cooked, optimized portfolio.
Final Thoughts
Crypto moves fast. If your portfolio doesn’t adapt with it, you’re leaving gains on the table—and exposing yourself to unnecessary risk.
Token Metrics AI Grades make index investing smarter by providing predictive, data-driven insights that inform every part of the investment process. That’s how Token Metrics consistently builds the best crypto index products for any market condition.
If you want to invest intelligently, you need tools that think ahead. AI Grades are that edge.
Start Investing with AI-Optimized Indices
✅ Daily-Updated Grades for 6,000+ Tokens
✅ Integrated Into Every Token Metrics Index
✅ Live Performance Tracking + Backtests
🌐 tokenmetrics.com