11 indicators to look for when evaluating a Defi project

  1. Total Value Locked / Fully-Diluted Marketcap
  2. Marketcap / Revenue
  3. % of Token Supply on Exchanges
  4. Unique Address Growth
  5. Token Balance Change on Exchanges
  6. Non-Speculative Usage
  7. Liquid Inflation Rate
  8. Community support (# leaders, communities, people)
  9. Virality (clear narrative, meme-ability)
  10. Attractiveness of liquidity mining program
  11. Management of technical risk (Audits)

(Note: Adapted from SpencerNoon; some have a positive & others a negative correlation.)

What do you think?


Good to know