How to Find Altcoin Gems: A Street-Smart Guide [Part 1]

By CryptoShanty | Sipping on Satoshi | 21 Mar 2024


altcoin 100x gem

Hey Crypto Explorer!

If you are here, I assume you dream about finding that 100x crypto gem that will turn your life 180 degrees and take you to the moon. But how do we track the ones that hypothetically could turn a modest investment into a crypto empire?

We’ll explore the world of altcoin research with some available tools because the right ones can make the difference between success and failure.

This is part one of a series of essential tools, and today, we will explore DEfiLlama.

 

DeFiLlama is one of the best aggregators focused on measuring the Total-Value Locked (TVL) within each DeFi Protocol. DeFiLlama is one of the most essential and trusted tools on the web to follow through with each DeFi protocol. By utilizing their tools, you know which protocols and blockchains are becoming popular and how they handle on the rankings.

DeFiLlama

This is your guide to the decentralized finance (DeFi) ecosystem. DeFiLlama helps you gauge the value locked in each blockchain and pinpoint market cap discrepancies. Look for chains with high potential and undervalued assets.

Understanding DeFiLlama

Trustworthy and essential for tracking the DeFi ecosystem online, Defillama is one of the most reliable ways to stay up-to-date with everything DeFi-related.

DeFiLlama is an outstanding aggregator focused on tracking the TVL of each DeFi Protocol. It possesses an arsenal of tools that help you gain invaluable insights into the rising stars among protocols and blockchains, all neatly ranked for your convenience.

Total value locked (TVL) is the total worth of assets, such as cryptocurrencies or tokens, locked or utilized within DeFi protocols. It represents the overall activity and popularity of each protocol.

DeFiLlama shows the value locked in blockchain networks. This includes assets like cryptocurrencies and tokens used in different DeFi protocols, such as lending, borrowing, and liquidity provision.

what is DeFiLlama Total-Value Locked (TVL) DeFi Protocol.

Navigating the Dashboard

When you first land on the DeFiLlama dashboard, you’ll see a ranking list of different blockchain networks and their total value locked (TVL), which indicates a blockchain’s overall activity and popularity within the DeFi space.

Identifying Market Cap Discrepancies

You can discover undervalued projects by tracking any inconsistencies in market caps. All you need to do is compare the Total Value Locked (TVL) of various blockchains with their corresponding market capitalizations. For instance, if one blockchain has a high TVL but a low market cap compared to similar projects, it may imply that the market has undervalued the project.

Spotting High-Potential Chains

Watch out for high-potential chains by searching for those with a fast-increasing TVL or a growing ecosystem of DeFi projects and protocols. These chains may present opportunities for significant growth as more users and developers flock to them.

Analysing Undervalued Assets

You can explore individual assets and their respective TVLs within each blockchain network. When searching for assets to invest in DeFi, look for those with high utilization but low market cap compared to peers. These undervalued assets could be hidden gems waiting to be discovered.

Stay Updated

DeFiLlama tool is constantly changing and adapting to the evolving DeFi landscape, so check out for dashboard updates, monitor TVL and market cap trends, and follow news and developments within the DeFi space.

Using DeFiLlama effectively lets you gain valuable insights into the DeFi landscape, identify potential investment opportunities, and make informed decisions about where to allocate your resources to pursue those juicy 100x gems.

That’s the wrap for now.

Consider that Fundamental Analysis in crypto only tells part of the story. For example, we tend to focus too much on Total Value Locked (TVL) but the discrepancy between it and valuation resulted in a common saying that 'TVL is a meme'. So, when exploring the crypto market, it's vital to look beyond just one number like TVL. Take a closer look at the whole story: How active is the community? Is there any? What kind of projects are being built, and does the value match the hype? Doing your homework and looking at the bigger picture will better equip you!

Hope you enjoyed it and feel free to like and follow for part 2 ❤️‍🍀

Join the conversation and share your thoughts 💭 in the comments; we all want to hear from you (:

*mic drop BAM*

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CryptoShanty
CryptoShanty

Navigating the crypto sphere with the grace of a drunken sailor, seeking hidden gems among memes and market trends. When not HODLing for dear life, I'm writing & curating content – but beware, you might end up with more questions than answers! ⛵💰


Sipping on Satoshi
Sipping on Satoshi

Roaming the wilds of digital currencies and other tales of treasures and turbulence ah

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