What is Token Terminal? How to Evaluate Project Potential using Token Terminal

1. What is Token Terminal?

Token Terminal is a financial data analysis platform designed for the cryptocurrency market. It provides rich information and analytical tools to help investors and enthusiasts gain deeper insights into various projects and tokens in the crypto space.

Token Terminal offers quality metrics and historical data on token performance, aiding users in assessing the performance and potential of cryptocurrency projects.

2. The Role of Token Terminal in the Cryptocurrency Market

Token Terminal focuses on extracting raw data from the cryptocurrency market and converting it into standardized metrics, providing users with useful features such as:

Potential Analysis: Offers information to help users identify undervalued blockchains and decentralized applications (Dapps) with potential. This helps them recognize investment opportunities and shape their investment strategies.
Historical Review: Creates alternative financial metrics to give users a more visual understanding of past fluctuations in blockchain and Dapp projects. Reviewing historical data allows users to assess the development and potential of projects.
Performance Comparison and Evaluation: Provides the ability to compare and evaluate the performance of a project against its competitors. This helps users make more informed investment decisions by comparing projects and identifying their strengths and weaknesses.
Quality Metrics: Token Terminal generates quality metrics to measure and compare the performance of projects and tokens. These metrics offer an overview of the health and potential of the cryptocurrency market.
Strategic Information: Based on data and analysis, Token Terminal provides strategic insights and market trends to help users better understand market behavior and make smart investment decisions.

Additionally, Token Terminal focuses on providing revenue information for each blockchain and Dapp. This allows users to more easily value and understand the true value each project brings. By capturing this information, they can comprehensively and meticulously evaluate the performance and potential of projects.

3. Key Metrics of Token Terminal

Token Terminal enables users to track two important metrics: TVL (Total Value Locked) and revenue for Blockchains or Dapps in a convenient and straightforward manner.

Total Value Locked (TVL): Represents the total value of assets locked in DeFi smart contracts. This is the amount invested by users in a specific protocol.
Revenue: Represents the total income generated from the technology and services provided by the blockchain or Dapp. This can include profits from transaction fees, service fees, or other revenue sources.

TVL can be seen as indicative of a project's scale, while revenue reflects its performance. In the blockchain economy, there is often a relationship between scale and performance, meaning performance can vary with scale. As TVL increases, indicating more capital input, it can lead to revenue growth.

4. Popular Features of Token Terminal

4.1. Basic Features

Popular Project Search: Users can search for and track the most popular and trending projects.
Detailed Data Information: Provides key metrics such as TVL, fees, price/revenue ratio, revenue, daily user count, developer count, and other indicators.
Chart Customization: Allows users to modify chart shapes to suit their needs and preferences.
Time Adjustment: Offers time adjustment options for analyzing data over different periods.
Stacked Charts: View the percentage of each project relative to the entire market through stacked charts.
Sector Analysis: View and compare different sectors within the market such as Liquid Staking, Blockchain (L1/L2), NFT Marketplaces, and more.

4.2. Weekly Movers

The Weekly Movers feature allows users to track the weekly fluctuations of projects in the market. Updated metrics include TVL, fees, price-to-fee ratio (P/F), and revenue. This helps users stay up-to-date with short-term changes and trends in projects.

4.3. Data Table

Project Name: Provided by the tool.
Latest Price Update: According to Token Terminal.
Token Price Movement: Over the past 24 hours.
Current Market Cap: Current market capitalization.
Fully Diluted Market Cap: Market cap assuming full dilution.
Number of Users: Depositing into smart contracts of the protocol.
Transaction Fees: On blockchains and DApps over the past 30 days.
Project Revenue: Over the past 30 days.
Registered Wallet Addresses: For daily protocol registration.
Developer Commitments: From public sources on GitHub, reflecting the project's development speed.
Treasury Assets: Held for marketing or fee redistribution to users

4.4. Project Information

Trading Volume: Of tokens on CEX and DEX.
Single Token Wallets: Number of wallets holding only one type of token.
Max Supply: Of the token.
Community Attraction: Based on the amount of user deposits into the protocol.
Staked Amount: Through smart contracts, reflecting user trust in the project.
Fees Paid: To the project.
Project Revenue:
On-chain Costs: Including token incentives.
Non-incentive Costs: Paid by the protocol.
Governance Token Support: For users.
Revenue After Costs:
Time to Recoup Fees: After full dilution.
Time to Recoup Revenue: At circulating value

5. Register for a Token Terminal Account

To register for a Token Terminal account, follow these steps:

Visit the official Token Terminal website at: https://tokenterminal.com/terminal/signup.
Enter your email address and choose a password for your account.
Click "Create Account" to complete the registration process.
After registering, check the email you used to sign up. Token Terminal will send a confirmation email to this address.
Open the email and click the confirmation link to complete the registration and activate your Token Terminal account.

Once these steps are completed, you can log into your account and experience the features of Token Terminal.

6. How to Check Project Revenue on Token Terminal?

With Token Terminal, you can check information about TVL (Total Value Locked) for a specific Blockchain or Dapp by following these steps:

Step 1: Log in to the main site at: Token Terminal | Fundamentals for crypto

Step 2: Go to the "View dashboard" section.

After logging in, you’ll see the main interface of Token Terminal, which includes three main sections:

Section 1: Filtering criteria, including four main tabs:

Home: Overview of revenue for most projects.
Metrics: Revenue metrics for blockchain based on criteria such as total revenue, revenue per protocol, P/S ratio, P/E ratio, etc.
Markets: Exchange, lending, blockchain, and DeFi metrics.
Projects: Specific metrics for individual projects.

Section 2: Quick search bar for projects.

Sections 3 and 4: Display specific metrics.

Users can select the relevant tab and use the search bar to quickly find the desired project. Detailed metrics will be displayed in Sections 3 and 4, providing insights into TVL and other indicators for the selected Blockchain or Dapp.

7. FAQs

Q1: How are the metrics on Token Terminal updated?

Metrics on Token Terminal are automatically updated from on-chain data and other public data sources. Token Terminal continuously monitors and aggregates information to provide the latest data to users.

Q2: Is Token Terminal free?

Token Terminal offers some free features for users. However, to access more detailed features and data, users may need to subscribe to paid service plans.

Q3: How can I assess the attractiveness of a project on Token Terminal?

You can assess a project's attractiveness by reviewing metrics such as user deposits into the protocol, staked amounts through smart contracts, and revenue and trading volume indicators. These details are available in the "Metrics" and "Projects" sections on Token Terminal.

Q4: How do I view specific metrics for a blockchain or Dapp on Token Terminal?

To view specific metrics for a blockchain or Dapp, select the "Projects" tab and search for the desired project. Detailed metrics about TVL, revenue, trading volume, and other indicators will be displayed in this interface.

8. Conclusion

Using Token Terminal not only helps you track important metrics like revenue, TVL, and trading volume but also provides the necessary information to evaluate a project's attractiveness and community trust. In the ever-changing cryptocurrency market, equipping yourself with powerful analytical tools like Token Terminal will help you maintain a competitive edge and optimize your investment portfolio.

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