DeFi Metrics

Definition ∞ DeFi metrics are quantifiable measures used to assess the performance, growth, and risk associated with decentralized finance protocols. These indicators typically include total value locked (TVL), trading volumes, yield rates, and user acquisition data. They provide objective data points for evaluating the health and trajectory of the DeFi ecosystem.
Context ∞ The analysis of DeFi metrics is a constant focus in cryptocurrency news, particularly concerning the total value locked across various protocols and lending platforms. Reports often highlight shifts in TVL, the performance of yield farming opportunities, or the market share of different decentralized exchanges. These metrics are indispensable for gauging the current state and developmental trends within decentralized finance.