Much to the humiliation of cryptocurrency and DeFi supporters that call for instant mass adoption of the blockchain technology. Usually there are various “digital landmines” which exist in crypto ecosystem like rug pulls and also protocol hacks. It gives new users with a wonderful experience.
Group of Opportunities
DeFi offers a wealth of opportunity for the investors, but without any risks. Let us now discuss key metrics used by the investors to analyze these DeFi tokens and associated protocols.
Also, there is many more to investing apart from technical analysis. Over last few years, the platforms of blockchain analysis launches the dashboards with metrics which assist to provide a clear insight about fundamentals supporting — and lack about the cryptocurrency project.
Below given are few points to consider for evaluating the altcoin or DeFi.
Check community of project
It is the basic ways about reading the project is to simply look at statistics which show the activity level from user base platform and developer community.
Various top protocols offer analytics which track the growth in the active users. The Dashboards that are On-chain such as Dune Analytics provide granular insights in the metric like following chart showing regular users on Olympus protocol.
Steady increases in Locked value of DeFi
A second metric to look at when assessing the overall strength of a project is the sum of all assets deposited on the protocol, otherwise known as the total value locked (TVL).
The data from Defi reflects that total value which is locked on DFI or DeFi protocol DeFiChain that has been also rising following some key upgrade of protocol. Such kind of signals that gains interest and momentum in project are enhancing.
Check about key token holders
Various factors considered as beneficial for token hodlers to hold and being much active in community. The Investors must even look in the token that launched about dominant token holders.
