What Metrics Indicate the Health of a DEX's User Base and Liquidity? ▴ Learn

What Metrics Indicate the Health of a DEX’s User Base and Liquidity?

Key metrics include Total Value Locked (TVL), which measures the assets in the liquidity pools, indicating depth. Daily trading volume reflects the user base's activity and demand.

The number of unique active wallets shows the size of the active user base. Low slippage for large trades is also a strong indicator of healthy liquidity and market efficiency.

How Do ‘Active Addresses’ Attempt to Provide a More Accurate User Count than Total Addresses?

How Is the Concept of “Total Value Locked” (TVL) Used as a Valuation Metric?

How Do “Sybil Attacks” Pose a Risk to the Integrity of Active User Count Metrics?

What Are Common Valuation Metrics for a Cryptocurrency with an Existing Product?