"Builders: Look for active repositories, steady commits and external validation to confirm real progress. Usage: Fees and retained revenue matter more than hype use clean, consistent definitions. Liquidity: Depth and spread across venues show true tradability, not inflated volumes. Token design: Check float, fully diluted valuation and unlock cliffs to spot supply overhang. Security: Audits alone aren't enough review who conducted them, when they were done and how upgrades are controlled."
"The clearest early sign is a team putting out useful updates in public: multiple active maintainers, recent merges, tests and docs that keep up with new features and recognition in grants or hackathons. Good places to check include developer reports like Electric Capital for big-picture trends, a project's GitHub for commit pace and issue activity, hackathon showcases such as ETHGlobal and public grant records like Optimism RetroPGF or Arbitrum."
Evaluate projects by five practical checks: builders, usage, liquidity, token design, and security. Verify developer activity through active repositories, frequent commits, multiple maintainers, tests, docs, and external recognition such as grants or hackathon wins. Measure usage with fee revenue and retained user activity rather than headline metrics. Assess liquidity by depth and spread across venues, not raw volume. Inspect token design for float, fully diluted valuation, unlock cliffs, and potential supply overhangs. Treat audits as context: confirm who performed them, their timing, and how upgrades and controls are managed to limit governance or upgrade risk.
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