3 Metrics DeFi Traders Can Monitor to Spot the Next Crypto Bull Market

TVL, costs income And wallet activity are just three metric investors can to use has assess THE health of THE Challenge sector.

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THE decentralized finance (Challenge) walk has has been A of THE most exciting And volatile sectors In THE crypto out of Bitcoin (BTC). In 2020, THE Challenge sector experimented A bull walk that saw THE total value locked (TVL) In decentralized finance protocols overvoltage Since $1 billion has on $100 billion. However, THE Challenge walk has Also has been subject has significant corrections. In 2021, THE Challenge walk experimented A correction that saw THE TVL autumn Since $100 billion has $40 billion.

Despite THE volatility of THE Challenge walk, there are manners For traders has catch on When THE niche crypto sector begin has to show supported bullish momentum. Three of THE most important metric has watch are TVL, A the platform costs income And THE number of not bad wallets holding tokens.

Let's go dig In A little Deeper has explore how these metric can be used has gauge THE health of THE Challenge sector.

Increases In THE total value locked

TVL East A of THE most widely used metric has measure THE generally health of THE Challenge ecosystem. TVL represented THE total Rising of cryptocurrency assets locked In Challenge protocols. When TVL gets up, he suggests increasing request And to use of Challenge services, which can mean A bull market.

While current TVL East slightly below THE 2023 peak together on April 15 of $52.9 billion, he has resurrected Since THE to start of THE year. From Jan. 1, TVL through THE crypto walk East up $7 billion, eclipsing $45 billion.