Key Evaluation Metrics
Market Metrics
Market Capitalization Total value of all coins in circulation
Trading Volume 24-hour trading activity indicating liquidity
Fully Diluted Valuation (FDV) Market cap if all tokens were in circulation
On-Chain Metrics
Active Addresses Number of unique addresses transacting
Transaction Volume Total value transferred on-chain
Network Hash Rate Mining power securing the network (for PoW)
Development Metrics
GitHub Activity Code commits and developer engagement
Protocol Updates Frequency and quality of upgrades
Team Track Record Experience and past achievements
Tokenomics
Token Distribution How tokens are allocated
Inflation Rate New token creation schedule
Utility Token use cases within ecosystem
Red Flags
- Low liquidity
- Concentrated holdings
- Inactive development
- Anonymous teams
- Unrealistic promises
Conclusion
Thorough metric analysis helps identify quality projects and avoid poor investments.
