Current Status and Evaluation Criteria of the DeFi Market

The DeFi market has shown a vigorous development trend in recent years, with its application scope expanded to multiple public chains and Layer2 networks. In this rapidly evolving ecosystem, we can see a variety of application scenarios continuously emerging, such as DEX, lending, Staking, derivatives, and cross-chain bridges, with new decentralized applications being consistently launched, aiming to optimize user experience.

In the DeFi ecosystem, DEX, Staking, and lending protocols are often regarded as the most fundamental and clearly demanded application scenarios. Whenever a new blockchain ecosystem emerges, these three types of DeFi protocols are usually the first to be deployed and applied. This phenomenon reflects the market's ongoing demand for these basic DeFi services.

For participants seeking investment opportunities, the emerging blockchain ecosystem may contain potential prospects. In particular, some new Alternative L1 public chains or Layer 2 networks are witnessing the rise of DeFi projects that may attract the attention of investors.

When evaluating DeFi protocols, we can refer to the following key indicators:

1. Total Value Locked (TVL)
2. Active Users
3. Trading Volume
4. Protocol Revenue
5. Market Value (MV)
6. Fully Diluted Valuation (FDV)
7. Market Capitalization to TVL Ratio (MV/TVL)
8. Price-to-Sales Ratio (P/S)
9. Price-to-Earnings Ratio (P/E)
10. The Innovativeness of the Agreement

These indicators can reflect the operational status, market recognition, and future potential of DeFi protocols from different perspectives, providing investors and analysts with a comprehensive assessment basis.

With the continuous evolution of the DeFi market, we expect to see more innovative application scenarios emerge, further promoting the development and popularization of decentralized finance. At the same time, participants need to remain vigilant, paying attention to potential risks and conducting thorough research and risk management.