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, signaling a bull market. While TVL has fallen from its peak in April, it has risen since the start of the year. Increased fee revenue suggests increased interest and usage of DeFi, with layer-1 blockchains showing positive fee increases. 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.
