Overview of DeFi Market Development and Investment Opportunities Analysis

The current DeFi market is showing a vigorous development trend, having expanded to multiple public chains and layer two networks. Various DeFi application scenarios continue to emerge, including decentralized exchanges, lending platforms, staking services, derivatives trading, and cross-chain bridges. Emerging decentralized applications are continuously optimizing user experience, bringing new vitality to the market.

In the DeFi ecosystem, decentralized exchanges, staking services, and lending platforms are the most fundamental and clearly demanded application scenarios. Whenever a new blockchain ecosystem emerges, these three types of DeFi protocols are often the first to be deployed and used, providing users with basic financial services.

With the continuous development of blockchain technology, DeFi projects in emerging ecosystems may contain investment opportunities. Especially on some emerging Layer 1 public chains or Layer 2 scaling solutions, DeFi projects may gain development opportunities due to lower competitive pressure and potential user growth.

The evaluation of DeFi protocols can be conducted from multiple dimensions:

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

These indicators can comprehensively reflect the operational status, user recognition, valuation level, and future development potential of DeFi protocols, providing decision-making references for investors.

In the context of the rapid development of the Decentralized Finance market, investors should remain vigilant, fully understand the project background and risks, and allocate assets reasonably to seize potential investment opportunities.