Evaluating Crypto Growth: Key Metrics and Considerations
The cryptocurrency industry demands specialized metrics to gauge growth, diverging sharply from traditional Web2 benchmarks. Layer 1 and Layer 2 networks thrive on symbiotic growth between Monthly Active Addresses (MAAs) and ecosystem development—spam-free adoption requires both user engagement and application diversity.
Protocols like DeFi projects rely on Total Value Locked (TVL) and Total Value Secured (TVS) as critical barometers. While TVL remains contentious, its contextual analysis reveals underlying network health. Venture firm a16z crypto underscores these frameworks as vital for distinguishing organic expansion from artificial inflation across blockchain tiers.