{"id":44741,"date":"2021-06-22T10:54:41","date_gmt":"2021-06-22T07:54:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=44741"},"modified":"2025-08-31T18:26:35","modified_gmt":"2025-08-31T15:26:35","slug":"an-investors-guide-to-popular-indicators-for-assessing-defi-projects","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/an-investors-guide-to-popular-indicators-for-assessing-defi-projects\/","title":{"rendered":"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects"},"content":{"rendered":"<p>The decentralised finance (DeFi) segment continues to develop at a rapid pace. New projects appear daily, and those with an established track record expand functionality, while adding support for <a href=\"https:\/\/u1f987.com\/en\/news\/1inch-network-ecosystem-expands-to-polygon-network\">new protocols<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\">scaling solutions<\/a>.<\/p>\n<p><!--more--><\/p>\n<p>Not only for beginners, but also for seasoned investors, keeping pace with the market\u2019s rapid changes can be challenging, not to mention timely assessments of new projects.<\/p>\n<p>A substantial array of indicators and platforms for fundamental analysis of DeFi protocols has been developed. Because a large volume of data is publicly available, any investor can readily use these tools.<\/p>\n<p>We propose to consider the most popular indicators designed to help in comparing different projects and in assessing the intrinsic value of assets in decentralized applications.<\/p>\n<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>There are many indicators designed to assist the DeFi investor in evaluating projects. Many are straightforward and publicly accessible.<\/li>\n<li>Using indicators in isolation does not provide a complete picture of the market \u2014 a holistic approach to analysis and consideration of overall market conditions is required.<\/li>\n<\/ul>\n<\/div>\n<h2 class=\"wp-block-heading\"><strong>Total Value Locked (TVL)<\/strong><\/h2>\n<p>It is one of the most watched indicators, drawing the attention of many market participants. TVL represents the aggregate value of assets locked in a DeFi protocol\u2019s smart contracts. <\/p>\n<p>For example, in the case of the Ethereum-based exchange <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-uniswap-uni\">Uniswap<\/a>, this is the total value of funds in its liquidity pools contributed by providers.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"357\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-Uniswap-1024x357.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139749\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-Uniswap-1024x357.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/1-Uniswap-300x105.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/1-Uniswap-768x268.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/1-Uniswap.png 1222w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>TVL of the non-custodial exchange Uniswap. Data from DeFi Pulse as of 20.06.2021.<\/figcaption><\/figure>\n<p>The TVL metric can be analysed for individual projects or for entire ecosystems. Platforms such as <a href=\"https:\/\/defipulse.com\/\">DeFi Pulse<\/a>, <a href=\"https:\/\/www.tokenterminal.com\/terminal\/metrics\/tvl\">Token Terminal<\/a> (Ethereum), <a href=\"https:\/\/www.defistation.io\/\">Defistation<\/a> (Binance Smart Chain, BSC), <a href=\"https:\/\/www.defibox.com\/hecoPrefecture\">DeFiBox<\/a> (Huobi ECO Chain) <a href=\"https:\/\/debank.com\/ranking\/locked_value\">DeBank<\/a> and others are suitable for this purpose.<\/p>\n<p>Below is the dynamics of the indicator for the entire Ethereum ecosystem:<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"950\" height=\"802\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-DeBank.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139750\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-DeBank.png 950w, https:\/\/u1f987.com\/wp-content\/uploads\/2-DeBank-300x253.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/2-DeBank-768x648.png 768w\" sizes=\"auto, (max-width: 950px) 100vw, 950px\" \/><figcaption>Gross Value Locked (GVL) dynamics \u2014 the TVL analogue. Data from DeBank as of 20 June 2021.<\/figcaption><\/figure>\n<p>TVL can be useful for gaining a sense of overall market interest in DeFi and sector growth. It can also be used to assess the market shares of protocols and to identify undervalued projects.<\/p>\n<p>The Token Terminal service allows comparing the TVL trajectories of different platforms.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"407\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/3-Token-Terminal-1024x407.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139751\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/3-Token-Terminal-1024x407.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Token-Terminal-300x119.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Token-Terminal-768x305.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Token-Terminal-1536x610.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Token-Terminal.png 1613w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: <a href=\"https:\/\/www.tokenterminal.com\/terminal\/metrics\/tvl\">Token Terminal<\/a>.<\/figcaption><\/figure>\n<p>Investor Spencer Noon of Variant Fund proposed using the ratio of TVL to the fully diluted market capitalization of a project (Fully-Diluted Market Cap or Fully Diluted Valuation). The latter denotes the total market value of all native tokens (already issued and not yet issued).<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">1. Total Value Locked \/ Fully-Diluted Marketcap<\/p>\n<p>Here\u2019s why: Protocols with more value locked should be able to capture more value.<\/p>\n<p>Rule of thumb: \u2b06\ufe0f number = ?? better<\/p>\n<p>DIY: <a href=\"https:\/\/twitter.com\/defipulse?ref_src=twsrc%5Etfw\">@defipulse<\/a> <a href=\"https:\/\/twitter.com\/coingecko?ref_src=twsrc%5Etfw\">@coingecko<\/a><\/p>\n<p>\u2014 Spencer Noon ? (@spencernoon) <a href=\"https:\/\/twitter.com\/spencernoon\/status\/1295002276747255809?ref_src=twsrc%5Etfw\">August 16, 2020<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The higher the ratio, the better. This is a sign of a substantial amount of funds in the project\u2019s ecosystem.<\/p>\n<p>Fully-Diluted Market Cap and TVL metrics for various services can be viewed on CoinGecko. The site also presents the Fully Diluted Valuation \/ TVL Ratio \u2014 the inverse of the ratio proposed by Spencer Noon.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"871\" height=\"440\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/4-Polygon-CoinGecko.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139752\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/4-Polygon-CoinGecko.png 871w, https:\/\/u1f987.com\/wp-content\/uploads\/4-Polygon-CoinGecko-300x152.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/4-Polygon-CoinGecko-768x388.png 768w\" sizes=\"auto, (max-width: 871px) 100vw, 871px\" \/><figcaption>TVL, Fully Diluted Valuation and other metrics for Polygon (MATIC). Data from <a href=\"https:\/\/www.coingecko.com\/en\/coins\/polygon\">CoinGecko<\/a> as of 20 June 2021.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><strong>Market Capitalisation<\/strong><\/h2>\n<p>Analysts may also find the market capitalization (Market Cap) metric useful. It is the total number of tokens issued into the market multiplied by the asset\u2019s current price.<\/p>\n<p>It is one of the most popular metrics, featured across numerous analytical services, including CoinMarketCap, CoinGecko and Coin Metrics.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"567\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/5-UNI-Mcap-1024x567.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139753\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/5-UNI-Mcap-1024x567.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/5-UNI-Mcap-300x166.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/5-UNI-Mcap-768x426.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/5-UNI-Mcap.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Uniswap token UNI market capitalization dynamics. Data: Coin Metrics.<\/figcaption><\/figure>\n<p>Projects can be compared either by capitalization or by the Market Cap \/ TVL ratio. All else equal, a lower ratio is preferable. This indicates the service is actively used and sizeable.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA value of the ratio above 1 means that market capitalization exceeds the total value locked,\u201d as stated by CoinGecko.<\/p>\n<\/blockquote>\n<p>To illustrate the difference between TVL and market capitalization, consider Maker, one of DeFi\u2019s pioneers.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"362\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/5_-Maker-CoinGecko-example-1024x362.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139754\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/5_-Maker-CoinGecko-example-1024x362.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/5_-Maker-CoinGecko-example-300x106.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/5_-Maker-CoinGecko-example-768x271.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/5_-Maker-CoinGecko-example.png 1299w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: <a href=\"https:\/\/www.coingecko.com\/en\/coins\/maker\">CoinGecko<\/a> as of 20 June 2021.<\/figcaption><\/figure>\n<p>In this case, TVL is the dollar-denominated total value of assets locked as collateral in the Maker system. In other words, if all <span data-descr=\"Collateralized debt positions.\" class=\"old_tooltip\">CDP<\/span> are valued at $6.4 billion, the platform\u2019s TVL would also be $6.4 billion. Maker\u2019s market capitalization is the product of the total circulating supply <span data-descr=\"native token of the Maker ecosystem\" class=\"old_tooltip\">MKR<\/span> by the current price of the native asset.<\/p>\n<p>You can compare Market Cap \/ TVL ratios across projects in the DeFi Leaderboard section of Etherscan.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"343\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/6-DeFi-Leaderboard-1024x343.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139755\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/6-DeFi-Leaderboard-1024x343.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/6-DeFi-Leaderboard-300x101.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/6-DeFi-Leaderboard-768x257.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/6-DeFi-Leaderboard.png 1370w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: <a href=\"https:\/\/etherscan.io\/defi-leaderboard\">Etherscan<\/a> as of 20.06.2021.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><strong>Price-to-Sales (P\/S) Ratio<\/strong><\/h2>\n<p>Many indicators in the crypto industry have inherited from traditional financial markets. In addition to the widely known market capitalization, one such metric is the price-to-sales (P\/S) ratio. In its classic form, this metric compares a company\u2019s stock price with its revenues.\u00a0<\/p>\n<p>As many DeFi protocols are already mature and generate revenue for their founders, an analogous metric can be applied. It is computed by dividing the protocol\u2019s market capitalization by its annual revenue. The lower the value, the better.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAnnual revenue is a forward-looking revenue estimate calculated using a 30-day moving average,\u201d according to Token Terminal\u2019s description of the indicator.<\/p>\n<\/blockquote>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"316\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/7-Price-to-sales-P-S-ratio-1024x316.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139756\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/7-Price-to-sales-P-S-ratio-1024x316.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/7-Price-to-sales-P-S-ratio-300x93.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/7-Price-to-sales-P-S-ratio-768x237.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/7-Price-to-sales-P-S-ratio-1536x474.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/7-Price-to-sales-P-S-ratio.png 1601w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>P\/S ratios of various projects. Data: Token Terminal<\/figcaption><\/figure>\n<p>Analysts classify DeFi project revenue into three categories:<\/p>\n<ul class=\"wp-block-list\">\n<li>Total revenue \u2014 the aggregate value of trading fees or interest paid;<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li>Supply-side revenue \u2014 revenue for liquidity providers and lenders;<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li>Protocol revenue \u2014 the total proceeds accruing to token holders.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA low ratio may indicate the protocol is undervalued, and vice versa,\u201d explain Token Terminal\u2019s experts.<\/p>\n<\/blockquote>\n<p>According to them, the metric helps to navigate projects with a compelling value proposition.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Token Offerings on Exchanges<\/strong><\/h2>\n<p>The most massive sell-offs typically occur on centralized exchanges (CEX). Liquidity on such platforms is generally higher than on many non-custodial platforms.\u00a0<\/p>\n<p>When large volumes of tokens accumulate on a CEX, this can spell potential selling pressure, especially during periods of volatile market corrections. The lower the metric, the safer for token holders. If a large number of coins are withdrawn from CEXs, this may indicate accumulation of the asset in non-custodial wallets and lower near-term selling pressure in the future.<\/p>\n<p>Significant changes in exchange balances in either direction can signal increased market volatility.<\/p>\n<p>Glassnode is one of the services where you can view the dynamics of this metric across many crypto assets.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/8-glassnode-studio_matic-token-percent-balance-on-exchanges-all-exchanges-1024x576.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139757\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/8-glassnode-studio_matic-token-percent-balance-on-exchanges-all-exchanges-1024x576.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/8-glassnode-studio_matic-token-percent-balance-on-exchanges-all-exchanges-300x169.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/8-glassnode-studio_matic-token-percent-balance-on-exchanges-all-exchanges-768x432.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/8-glassnode-studio_matic-token-percent-balance-on-exchanges-all-exchanges-1536x864.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/8-glassnode-studio_matic-token-percent-balance-on-exchanges-all-exchanges.png 1800w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Token balance on exchanges for MATIC. Data: Glassnode.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><strong>Number of Unique Addresses<\/strong><\/h2>\n<p>A steady rise in the number of addresses can indicate growing activity in the ecosystem and demand for the token.\u00a0<\/p>\n<p>However, this metric does not always correlate with user-base expansion. Some may generate thousands of addresses to create the illusion of active and widespread token usage. Consequently, the indicator may only complement the overall market picture. It should be used alongside other metrics, considering various factors.<\/p>\n<p>The chart below shows the evolution of the number of addresses for popular DeFi projects over the last three months.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"405\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/9-Coin-Metrics-Addr-count-1024x405.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139758\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/9-Coin-Metrics-Addr-count-1024x405.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/9-Coin-Metrics-Addr-count-300x119.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/9-Coin-Metrics-Addr-count-768x304.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/9-Coin-Metrics-Addr-count-1536x607.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/9-Coin-Metrics-Addr-count.png 1842w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: <a href=\"https:\/\/charts.coinmetrics.io\/network-data\/#527\">Coin Metrics<\/a>.<\/figcaption><\/figure>\n<p>There is a dashboard on Dune Analytics showing the dynamics of the <em>user count<\/em> for some DeFi projects.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Inflation Rate<\/strong><\/h2>\n<p>Some users may focus on tokens with a small circulating supply, treating them as scarce assets. But they should consider another important metric \u2014 the inflation rate.\u00a0<\/p>\n<p>If new tokens are issued into the market continuously and at high rates, their supply will naturally increase. This carries the risk of sustained price pressure should demand stay the same or fall.<\/p>\n<p>The screenshot below shows a ranking of crypto projects sorted by inflation rates.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"685\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/10-Messari-inflation-1024x685.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139759\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/10-Messari-inflation-1024x685.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/10-Messari-inflation-300x201.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/10-Messari-inflation-768x514.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/10-Messari-inflation.png 1155w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: <a href=\"https:\/\/messari.io\/screener\/BDBCED13\">Messari<\/a>.<\/figcaption><\/figure>\n<p>For a more comprehensive picture, it is prudent to study the project\u2019s monetary policy features, including the token vesting schedule (if provided), the planned trajectory of the inflation rate, and other characteristics.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Trading Volume<\/strong><\/h2>\n<p>Attention should also be paid to the trading volume of the project\u2019s native token. Beyond speculative demand, high values of this metric can indicate liquidity and efficient price discovery.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"347\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/11-UNI-trading-volume-1024x347.png\" alt=\"An Investor\u2019s Guide to Popular Indicators for Assessing DeFi Projects\" class=\"wp-image-139760\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/11-UNI-trading-volume-1024x347.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/11-UNI-trading-volume-300x102.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/11-UNI-trading-volume-768x260.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/11-UNI-trading-volume-1536x521.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/11-UNI-trading-volume.png 1643w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Trading volume chart and market capitalization of Uniswap\u2019s UNI token. Data: <a href=\"https:\/\/www.tokenterminal.com\/terminal\/projects\/uniswap\">Token Terminal<\/a>.<\/figcaption><\/figure>\n<p>Token Terminal also features the GMV indicator. According to the platform\u2019s analysts, GMV is intended to answer questions:<\/p>\n<ul class=\"wp-block-list\">\n<li>how strong is the demand for the project\u2019s services?<\/li>\n<li>what is the total value, in dollars, that passes through the protocol?<\/li>\n<\/ul>\n<p>The indicator may represent either the turnover of a decentralized exchange or the volume of deposited and borrowed assets in a lending app.<\/p>\n<h2 class=\"wp-block-heading\"><strong>***<\/strong><\/h2>\n<p>DeFi is an important component of the industry. In this segment, new analytical platforms with strong visualisation and a user-friendly interface continually emerge, easing interaction with a host of metrics.\u00a0<\/p>\n<p>The indicators presented in this review may be useful in fundamental analysis. Taken in isolation, a metric does not give a complete picture \u2014 it should be used alongside other tools, in comparison with competing projects\u2019 metrics and considering overall market conditions.<\/p>\n<p>Subscribe to ForkLog\u2019s YouTube channel at <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We consider the most popular indicators designed to help compare different projects and assess the intrinsic value of assets in DeFi.<\/p>\n","protected":false},"author":1,"featured_media":44742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1144],"tags":[1267,1093,1145,1268,1253],"class_list":["post-44741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-longreads","tag-cryptocurrency-trading","tag-defi","tag-market-analysis","tag-on-chain-analysis","tag-technical-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"33","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=44741"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44741\/revisions"}],"predecessor-version":[{"id":44743,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44741\/revisions\/44743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/44742"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=44741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=44741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=44741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}