**How to Read Chains That Will Be Widely Used? Here’s the Method.**
Getting an early position (first mover advantage) in the trending chain is important. Besides potentially earning from the tokens, we can also engage in its ecosystem, from farming, airdrops, to becoming an early liquidity provider. But how can we know which chain is promising?
**1. Check Total Value Locked (TVL).**
TVL is the main indicator to see if on-chain activity is starting to rise or not. If there are many incentives like yield farming, staking, or active airdrops, usually the TVL will start to grow. And that’s a sign that the ecosystem is starting to attract users and capital.
**2. Check Volume and Daily Activity.**
A chain that is starting to thrive will be noticeable from its transaction volume and the increase in daily active wallets (DAU). But be careful, make sure the spike isn’t just a wash trading effect. Look at its sustainability. Is the volume consistent or just a spike for a day or two and then disappears?
**3. Measure the Size of the Narrative.**
Narrative plays a crucial role. A chain that is fundamentally strong but lacks a narrative may lose momentum to a chain with a buzz. Check the buzz on Twitter, Discord, or Telegram. Is this chain on the community's radar? Is it frequently mentioned by influencers? Or is it quiet like a zombie project?
**4. Who is Behind It.**
The team and backers factor cannot be overlooked. Look at the developer's track record, have they built successful projects before or are they just a one-time hype? Also check who the investors are. Are there any smart money like a16z, Paradigm, or Binance Labs? Projects backed by big players usually have strong support to sustain growth and narrative.
📌 Disclaimer : Not Promotion & Not Financial Advice
