TVL (Total Value Locked)
It is one of the most important indicators in DeFi projects. Total Locked Value is the value of the total amount locked by smart contracts in DeFi projects, either in cryptocurrencies or USD locked. TVL is an important indicator used to measure the interest shown in the DeFi project. At the same time, TVL allows comparison and evaluation between DeFi projects.
P/S ratio (Price-Sales Ratio)
The Price-Sell ratio is an indicator that can give important information about whether the value of the amount invested by the investors in the project is above or below the real value. The lower the Price/Sell Ratio, the higher the probability that the value invested will be lower. When the Price/Sell Ratio rises, the probability of the investment’s value increasing becomes stronger. Investors can calculate the Price/Sell Ratio by dividing the market value of the protocol by their own revenue.
Token Supply on Exchanges
DeFi investors should follow token offerings on exchanges. Selling pressure is usually higher for those who invest in exchanges, as there are so many tokens and cryptocurrencies on exchanges. This may lead to a decrease in token value, but DeFi investors still need to monitor token offerings on exchanges.
Change of Token Amount in Exchanges
The fact that the tokens offered on the exchanges are sent to cold wallets in large quantities and the number of tokens on the exchange decreases may mean that whales accumulate these tokens. This may increase the value of the token. Therefore, the change in the amount of tokens on the exchanges is one of the important indicators to be followed.
Number of Original Addresses
An increase in the number of unique, unique addresses that contain a particular asset may indicate that investors are adopting this asset and that this asset is being used more. However, this indicator should be approached with some caution, as it is a low-cost and easy process to create addresses and allocate that asset to different addresses.
The goal of the project
Some projects only promise big returns, while others deliver what they promise. When investing in a project, investors should consider how sustainable their value is, why the projects will be used, and why they are worth investing in. Before making an investment, the real value of that asset can be measured by conducting research on the asset in question. An investment should not be made in a project just because its price is appreciated.
Inflation rate
Finally, the Inflation Rate is one of the most important indicators that investors should pay attention to. Assets that emerge with limited supply may not always be limited to this amount of supply. The amount of supply may increase, which can lead to a decrease in the value of the asset. While inflation is not a bad situation for investors, excessive inflation is not a good situation for investors. Inflation Rate, like other indicators, is an indicator that needs attention.
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