Expansion and Development Trends of the Decentralized Finance Market

The DeFi market is undergoing a phase of rapid expansion, with its influence extending to multiple public chains and Layer2 networks. The development of this field has given rise to a variety of application scenarios, including decentralized exchanges (DEX), lending platforms, staking services, derivatives trading, and cross-chain bridges. Meanwhile, new applications continue to emerge, aimed at optimizing user experience and promoting the advancement of the entire ecosystem.

In the DeFi ecosystem, DEX, staking, and lending services have become the most popular and mature application scenarios. These three types of protocols are usually the first DeFi projects deployed in emerging blockchain ecosystems, reflecting the ongoing demand in the market for these fundamental financial services.

With the continuous innovation in the DeFi field, emerging ecosystems may contain potential investment opportunities. Particularly on some highly regarded alternative public chains and Layer2 solutions, DeFi projects are rapidly developing, attracting the attention of a large number of investors and users.

To assess the value and potential of DeFi protocols, market participants typically consider multiple key indicators. These indicators include Total Value Locked (TVL), number of active users, trading volume, protocol revenue, market capitalization (MV), fully diluted valuation (FDV), market cap to TVL ratio (MV/TVL), price to sales ratio (P/S), price to earnings ratio (P/E), and more. Additionally, the innovation of the project is also an important evaluation factor, reflecting the unique value proposition of the protocol in the competitive DeFi market.

With the continuous evolution of the DeFi ecosystem, we can expect to see more innovative financial products and services emerge. This will not only provide users with richer financial choices but will also drive the entire blockchain industry towards a more mature and diversified direction.