In the crypto space, 10 key insights you must know

MEV is the foundation of long-term value: In the long run, MEV (Maximum Extractable Value) is a key indicator of the developmental prospects of a chain. It reflects the scalability, security, and attractiveness to developers and users of the blockchain. TVL is a misleading metric: Total Value Locked (TVL) is a metric that is often exaggerated because it can be easily manipulated. By inflating the price of L1 tokens, TVL data can be artificially increased. FDV is significant: Fully Diluted Valuation (FDV) is an important metric because it reflects the potential market value of a blockchain project. Although it is not perfect, it can provide a rough estimate of the project's scale. Economic security is not reliable: Relying solely on economic security to ensure the stability of a blockchain is insufficient, as evidenced by cases like LUNA and ATOM. Other security mechanisms, such as consensus mechanisms and governance models, are also needed. The execution layer is key to value capture: The execution layer is the core of the blockchain, responsible for processing transactions and validating data. Therefore, it is also the main venue for value capture. DEX data better reflects ecological prosperity: The data from decentralized exchanges (DEX) can more accurately reflect the prosperity of the blockchain ecosystem. To obtain a clearer picture, stablecoin exchange pairs and L1 token -U/ETH trading pair data should be excluded. Focus on developers, not community users: The success of blockchain projects depends on developers, not community users. Therefore, project strategies should be centered around developers, attracting and supporting them. The structure of the U.S. stock market mapped to the crypto space: Just like the U.S. stock market, the market capitalization and trading volume in the crypto space may also be concentrated in a few leading projects. Business models are crucial: Merely having a large number of users does not guarantee the success of a project. It is more important to find a viable business model that converts user value into actual revenue. Value is the foundation of prosperity: The long-term prosperity of blockchain projects needs to be built on a solid value foundation. This requires the introduction of traditional investment systems and valuation models to more objectively assess project value. $BTC $ETH #BNB创新高 #名人MEME热潮