DeFi token prices often react to Total Value Locked (TVL) and liquidity shifts. A growing TVL can signal a healthy ecosystem, driving prices up, while declines in TVL or major withdrawals typically lead to bearish price movements.
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Look at the project's development progress, team transparency, and real-world use cases. Strong tokenomics and consistent community engagement are positive signs. Research if previous airdrops have led to genuine adoption or were just short-term marketing tactics.
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Transparency and communication are fundamental for building trust in a project. Start by assessing how often the team communicates updatesβdo they release regular progress reports, blogs, or roadmap updates? Projects that provide transparency about development challenges, milestones, and changes tend to build stronger relationships with their community. Look at how the team engages with users on social media platforms and forumsβare they quick to respond to questions or concerns? Transparent projects will also provide access to key metrics and audits, allowing users to see how funds are being used. Consistent, open communication helps foster trust, keep the community engaged, and ensure that users feel informed and involved.
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