Analysis of DeFi Market Development Trends and Investment Opportunities

The DeFi market has shown a vigorous development trend in recent years. Currently, DeFi applications have expanded to multiple public chains and layer two networks, covering various application scenarios such as decentralized exchanges, lending platforms, staking services, derivatives trading, and cross-chain bridges. Emerging DeFi protocols continue to emerge, aiming to optimize user experience and enhance operational efficiency.

In various DeFi applications, decentralized exchanges, staking services, and lending platforms are the three main scenarios with the most explicit demand and the most mature models. Whenever a new blockchain ecosystem emerges, these three types of DeFi protocols are often the first to be deployed and adopted.

For investors, DeFi projects in emerging blockchain ecosystems may contain potential investment opportunities. In particular, DeFi projects on some innovative first-layer public chains or second-layer scaling solutions are worth close attention.

When evaluating DeFi protocols, the following key metrics can be considered: Total Value Locked (TVL), number of users, trading volume, protocol revenue, market capitalization, Fully Diluted Valuation (FDV), market cap/TVL ratio, Price/Sales (P/S), Price/Earnings (P/E), and the project's innovation. These metrics can comprehensively reflect the operational status, market recognition, and future development potential of a DeFi project.

With the continuous development and maturation of the DeFi market, we expect to see more innovative application scenarios and business models emerge. While investors focus on the traditional DeFi sector, they should also maintain an open attitude towards emerging blockchain ecosystems to seize potential investment opportunities.