TVL ( Locked Total Value )
It is one of the most important indicators in DeFi projects. Locked Total Value In DeFi projects, the total amount held locked by smart contracts is the value in cryptocurrency or USD that is kept locked. TVL is an important indicator used to measure interest in the DeFi project. At the same time, TVL allows comparison and evaluation between DeFi projects.
P/S ratio
The Price-to-Sell ratio is an indicator that can give important information about whether the value of the amount invested by investors in the project is above or below its true value. The lower the Price/Sale Ratio, the more likely it is that the value of the invested amount will be low. When the Price/Sale Ratio increases, the probability of the value of the investment increasing becomes stronger. Traders can calculate the Price/Sale Ratio by dividing the market value of the protocol by their own income.
Token Supply on Exchanges
DeFi investors should keep track of their token supply on exchanges. Since there are a large number of tokens and cryptocurrencies on exchanges, the selling pressure of those who invest in exchanges is usually higher. This may lead to a decrease in the value of the token, but DeFi investors still need to keep track of the token supply on exchanges.
Change of Token Amount on 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 is decreasing may mean that the whales are accumulating these tokes. This can lead to an increase in the value of the token. Therefore, the change in the amount of tokens on the exchanges is also one of the important indicators to follow.
Number of Unique Addresses
An increase in the number of unique, unique addresses that hold a particular asset may be an indication that investors are adopting that asset and that it is being used more. However, since creating an address and allocating this asset to different addresses is a low-cost and easy process, this indicator should be approached a little more cautiously.
Aim of the Project
Some projects only promise great returns, while others deliver what they promise. When investing in a project, investors should pay attention to how sustainable their value is, why the projects will be used, and why they are worth investing in. By conducting research on the asset in question before investing, the true value of that asset can be measured. One should not invest in a project just because its price is valued.
Inflation Rate
Finally, the Inflation Rate is one of the most important indicators that should be considered by investors. Assets that arise with limited supply may not always be limited to that amount of supply. The amount of supply may increase, which can lead to a decrease in the value of the asset. Although inflation is not a bad situation for investors, excess inflation is not a good situation for investors. The Inflation Rate is an indicator that should be considered like other indicators.
