DeFi analysis often relies on combining various on-chain metrics instead of relying solely on a single signal. Understanding liquidity, token movement, utility, and valuation metrics helps identify whether a protocol is undervalued or overhyped. Data transparency allows investors to objectively evaluate DeFi protocols without relying on rumors or hype. This guide outlines the most practical and widely used on-chain indicators for evaluating DeFi projects, along with where to find the data. These aren’t theoretical concepts – they’re real metrics used by analysts, funds, and experienced on-chain investors to separate sustainable projects from short-lived noise. 7 key metrics, combined, provide a more holistic picture of a protocol’s health, growth trajectory, and sustainability compared to relying solely on hype or subjective judgments. This guide highlights these metrics and how they can be used for smarter investment decisions.