TVL, fee revenue, and wallet activity are important metrics for assessing the health of the DeFi sector. Increases in TVL indicate growing demand and use of DeFi services, suggesting a bullish market. While TVL has fallen from its peak in April, it has risen since the start of the year. Increased fee revenue on layer-1 blockchains indicates rising interest in DeFi and the use of DApps. The number of non-zero wallet addresses is a reliable indicator of demand, with an all-time high reached in November 2020. By monitoring these metrics, traders can gain insights into the overall health of the DeFi market and potentially identify emerging bull markets.
