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7 indicators every #DeFi investor should be using to evaluate projects 
1. Total Value Locked / Fully-Diluted Marketcap
Here's why: Protocols with more value locked should be able to capture more value.
Rule of thumb:
number = 
better
DIY: @defipulse @coingecko
Here's why: Protocols with more value locked should be able to capture more value.
Rule of thumb:
number = betterDIY: @defipulse @coingecko
2. Price to Sales (aka Marketcap / Revenue)
Here's why: #DeFi protocols that sustainably capture revenue have better long-term prospects.
Rule of thumb:
=
DIY: @tokenterminal
Here's why: #DeFi protocols that sustainably capture revenue have better long-term prospects.
Rule of thumb:
= DIY: @tokenterminal
3. % of Token Supply on Exchanges
Here's why: Useful for understanding float dynamics (i.e. maximum sell pressure)
Rule of thumb: =
DIY: @nansen_ai
Here's why: Useful for understanding float dynamics (i.e. maximum sell pressure)
Rule of thumb:
= DIY: @nansen_ai
4. User Growth (aka Unique Address Growth)
Here's why: Useful indicator for determining product-market fit.
Rule of thumb: slope =
DIY: https://explore.duneanalytics.com/dashboard/defi-users-over-time cc @richardchen39 @DuneAnalytics
Here's why: Useful indicator for determining product-market fit.
Rule of thumb:
slope = DIY: https://explore.duneanalytics.com/dashboard/defi-users-over-time cc @richardchen39 @DuneAnalytics
5. Token Balance Change on Exchanges
Here's why: When tokens move onto exchanges, there is a high likelihood of sell activity.
Rule of thumb: exchange balance =
DIY: @nansen_ai
Here's why: When tokens move onto exchanges, there is a high likelihood of sell activity.
Rule of thumb:
exchange balance = DIY: @nansen_ai
6. Non-Speculative Usage
Here's why: Looking at the # of daily transactions not related to speculation (trading) is a great way to understand how much a protocol is actually being used for its intended purpose.
Rule of thumb: =
DIY: no one-stop shop to view this yet!
Here's why: Looking at the # of daily transactions not related to speculation (trading) is a great way to understand how much a protocol is actually being used for its intended purpose.
Rule of thumb:
= DIY: no one-stop shop to view this yet!
7. Liquid Inflation Rate
Here's why: investors should be aware of potential dilution and deeply understand a project's token economic model
Rule of thumb: None - not all inflation is bad.
DIY: @MessariCrypto
Here's why: investors should be aware of potential dilution and deeply understand a project's token economic model
Rule of thumb: None - not all inflation is bad.
DIY: @MessariCrypto
Looking for more #DeFi fundamentals? Subscribe to my crypto analytics newsletter @OurNetwork__: https://ournetwork.substack.com/subscribe?utm_source=menu&simple=true&next=https%3A%2F%2Fournetwork
Finally, an important note: #DeFi indicators are not one-size-fits-all, and since we're entering a new bull market, expect all of these indicators to be gamed in the coming months.
Actually, I'm also going to post some of the best feedback about risks and other considerations on this thread too.
First up: https://twitter.com/PhABCD/status/1295004001717682177?s=20
First up: https://twitter.com/PhABCD/status/1295004001717682177?s=20
