Analysis of Development Trends and Evaluation Indicators in the Decentralized Finance Market

The DeFi market has recently shown a booming development trend, with its application scope expanding to multiple public chains and layer two networks. Currently, DEX, lending, and staking have become the most mature application scenarios in the DeFi field, while emerging applications such as derivatives trading and cross-chain bridging are continually emerging, continuously optimizing the user experience.

It is noteworthy that whenever a new blockchain ecosystem emerges, DEX, staking, and lending protocols are often the first DeFi applications to be deployed. This phenomenon reflects the core position of these three types of applications in the DeFi market and the stability of user demand.

For participants seeking investment opportunities, the emerging blockchain ecosystem may hold potential. Particularly, on some new first-layer blockchains and second-layer scaling solutions, DeFi projects may bring new opportunities.

When evaluating DeFi protocols, the following metrics can be referenced:

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

These indicators can comprehensively reflect the market performance, user recognition, profitability, and future potential of a Decentralized Finance protocol, providing valuable reference information for investors and analysts.

With the continuous evolution of the DeFi market, we expect to see more innovative application scenarios emerge, further driving the development of the entire industry. At the same time, for existing DeFi protocols, continuously optimizing user experience and improving efficiency will be key to maintaining competitiveness.