– Increases in the total value locked: TVL represents the total amount of cryptocurrency assets locked in DeFi protocols. A rise in TVL suggests increasing demand and use of DeFi services, which can signify a bull market.
– Increased fee revenue points to increased usage and interest: Rising layer-1 fees suggest increasing interest in DeFi and that traders are utilizing DApps to interact with blockchains.
– Non-zero DeFi wallet addresses rise: When the number of non-zero addresses increases, it suggests increasing demand, which can be a sign of a bull market.
The DeFi market has recovered and evolved since the Terra Luna implosion, but it is also volatile, so it is important to carefully consider on-chain metrics and other macro factors that can help identify bull markets. By watching these metrics, traders can better understand the DeFi market’s overall health and possibly get early signals on the emergence of a new bull market.