6 Indicators for Trading BSC DeFi Tokens - Boost Your Trading Profit

2021-03-17 09:50:00 · 2321 views · 5 min read

 

The Binance Smart Chain has experienced crazy growth in the last few months. The DeFi tokens on BSC are achieving amazing gains as the BSC DeFi and Dex protocols on-chain performance reach new highs each week. Dapps on Ethereum network have expanded to BSC successfully such as 1inch exchangeDODO, Cream Finance, IDEX, etc.

Dapp.com has launched the advanced data dashboard for BSC dapps and tokens. A professional token trader? What data should you look at for your trading analysis? Here are 6 indicators you should know before you invest in BSC DeFi or Dex coins.

 

 

For DEX

  • Trading Volume

  • Liquidity Provider Number

  • Fees Earned

 

 

For Lend & Borrow DeFi Protocol

  • Unique Lender

  • Daily Deposit Amount

  • Total Valued Locked (TVL)

 

 

 

PancakeSwap

 

Being the largest AMM DEX on BSC and the only AMM DEX to compete with Uniswap, PancakeSwap has captured the great value of the system and it is the best DeFi dapp to represent BSC’s growth.

 

 

Open the PancakeSwap data dashboard, you will definitely be surprised at the close correlation of $CAKE token price and its on-chain data.

(The black line is $CAKE price)

 

 

The $CAKE price follows the same movement of the number of trading volume and liquidity providers. When these 2 data reach their ATH, the $CAKE price is at its ATH as well. 

 


Why? The logic can be simple because the amount of liquidity providers indicates the popularity of the product and the trading volume indicates how much money this DEX will earn so far. This is very important for your trading fundamental analysis. You can see in the PancakeSwap dashboard that the platform has earned $9.18M so far!

 

 

You can check $CAKE on-chain data on its token dashboard as well. 92% growth of its active address in 24Hr.

 

 

Venus Protocol

 

Venus Protocol is the Compound on BSC.

Surprised by the crazy growth of Venus Protocol? For a DeFi project, 4 important metrics you should check are the Unique Lender, Transaction, Deposit Amount and TVL for your trading analysis. See the below graph, $XVS’s price showed a strong correlation with these 4 metrics. 

(The black line is the $XVS price)

 

 

Why? The logic is, for projects such as Venus Protocol, the most important on-chain behaviour of its users are lend and borrow. Lender amount larger than borrower amount means more users are depositing into this protocol. It can also reflect its daily total deposit amount and TVL (Total Value Locked). The more lender and larger the deposit amount, the larger the total value locked in the protocol. Its token tends to be strong in the long run. 

 

 

$XVS token data

 

 

Autofarm

 

Autofarm is a yield farming aggregator running on Binance Smart Chain, aiming at optimizing DeFi users’ yields as they interact with the other dapps in the DeFi space. (Make Auto Farm and Arbitrage Profits Together with These 3 New DeFi!)

(The black line is the $AUTO price)

 

 

As shown in the charts above, the $AUTO token price has a high correlation with the dapp’s Users, Volume and Transaction.

 

 

Autofarm’s users, volume and transaction all hit the ATH in the middle of Febuary. $AUTO token price also broke ATH at $8.32K. Then you can see the price curve and the users/volume/transaction curves moving almost in the same direction since the peak.

 

 

$AUTO token data

 

 

BakerySwap

 

BakerySwap is a decentralized automated market-making AMM protocol on Binance Smart Chain(BSC) and the 1st NFT trading platform on BSC - 'Bakery NFT Supermarket'.

Remember what indicators we discuss in PancakeSwap? The same logic for BakerySwap! 2 most important indicators - Trading Volume and Liquidity Provider. The $BAKE token price moves in the exact same trend with these 2 on-chain data. Can’t remember the logic? Check the paragraph of PancakeSwap above.

(The black line is the $BAKE price)

 

 

$BAKE token data

 

Check all BSC dapps here.

 

 

Want more data on the dashboard? Let us know on the dapp product dashboard 👇

 

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