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 potential bull market. Despite a recent correction, TVL has risen since the start of the year. Increased fee revenue suggests increasing interest in DeFi, as traders utilize DApps to interact with blockchains. 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.
