TVL, TPS, Token unlock, revenue… key blockchain metrics you need to know

Before investing, it is strongly recommended that thorough research be conducted. This is true in every field, especially when it comes to cryptocurrencies. Simply following market trends can be risky. As the saying goes, never invest in something you don’t understand.

Several metrics can be used to evaluate a crypto project's potential. Some are more popular than others among investors, such as TVL or TPS.

Below, we present four essential metrics and explain why each should be carefully studied before investing.

Total Value Locked (TVL)

Total Value Locked (TVL) remains one of the most widely used and referenced metrics in the crypto industry.

Nearly every decentralised finance (DeFi) project highlights its TVL as a symbol of trust, liquidity, and financial strength. TVL represents the total value of digital assets, such as cryptocurrencies, stablecoins, liquidity provider tokens, and in some cases, NFTS, that are locked or staked within a DeFi protocol or decentralised application.

Currently, Ethereum dominates the TVL rankings, with over $50 billion locked, accounting for more than half of the total market.

However, while TVL measures the value locked in a protocol, it does not necessarily indicate active user engagement. 

Because it is heavily influenced by token prices, TVL can fluctuate significantly due to market volatility, even if user activity remains unchanged.

It’s also important to recognize that TVL (Total Value Locked) figures can be manipulated. Some protocols artificially inflate their numbers by double-counting assets—for example, including both the tokens deposited into liquid staking platforms and the liquid staking tokens received in return. Moreover, TVL can be inflated by incentives, either directly or indirectly provided by blockchain foundations or liquidity providers closely associated with the project.

TPS

Transactions Per Second (TPS) is a widely used metric for evaluating the performance and scalability of blockchain networks. TPS measures how many transactions a blockchain can process each second, providing a straightforward indicator of network speed.

Among the fastest blockchains, the Internet Computer Protocol (ICP) stands out with a real-time TPS of 1,286.

By comparison, Bitcoin processes around 7 transactions per second, a relatively low figure given its global usage. However, while high TPS is often marketed as a sign of technical superiority, it doesn't necessarily make a blockchain "better." Speed can come at the expense of other crucial properties like decentralisation and security: this trade-off is commonly referred to as the blockchain trilemma, which suggests that no blockchain can simultaneously optimise for scalability, security, and decentralisation.

It’s also important to note that TPS figures can be misleading. Many projects advertise theoretical maximums rather than actual throughput under real-world conditions. 

Additionally, not all transactions are created equal—simple transfers require far fewer resources than complex smart contract executions. And in the case of Bitcoin, multiple payments can be batched into a single transaction.

Token Unlock

Token unlocks are a crucial factor that investors should not overlook. Many have incurred losses simply because they didn’t understand how token vesting works.

Most crypto projects implement locking or vesting schedules to manage token distribution. At launch, a significant portion of tokens is typically locked for a set period to help stabilise the price and prevent immediate sell-offs. 

These tokens are then gradually unlocked, often allowing early investors, team members, or advisors to sell their holdings. In most cases, tokens are released every month over a 12- or 24-month period. Some projects also tie unlocks to specific milestones or performance goals.

Large token unlocks can create significant selling pressure, potentially pushing the token’s price downward.  That’s why investors need to monitor key information such as the unlock date, the number of tokens to be released, their USD equivalent, and the percentage they represent of the current circulating supply. 

These indicators can be consulted on websites like CoinMarketCap, for example. They provide valuable insight into the potential impact on the market.

Revenue

Revenue is a straightforward metric for assessing the success of a crypto protocol.

It is calculated by multiplying the total fees collected by the protocol’s retained fee share, after accounting for any distributor or third-party splits. This figure gives investors a clear view of the actual income the protocol generates.

Revenue from transaction fees also reflects how actively a platform is being used and how sustainable its business model may be. 

Over the past year, two stablecoin-related protocols have dominated the crypto revenue landscape. Tether was the top performer, generating over $5.92 billion in fee revenue, followed by Circle with $1.67 billion, and Ethereum with $1.27 billion.

REV & MEV

However, in recent months, a new metric has emerged and gained traction among investors: REV (Real Economic Value).

Introduced by the research team at Blockworks Research and originally applied to the Solana network, REV accounts not only for base transaction fees but also for additional tips, such as those paid by users to validators to prioritise transactions.

The term REV is a nod to MEV (Miner Extractable Value), which is the additional value that validators can capture by reordering transactions within a block. 

MEV includes both “toxic” behaviours, such as front-running and sandwich attacks that extract value from users, and “useful” practices, like arbitrage between DEXS or DeFi liquidations, which can improve market efficiency.

By including MEV-related income, such as Jito tips, REV acknowledges these flows as genuine indicators of blockspace demand rather than negative side effects. 

Jito tips are payments made by users or bots on the Solana network to incentivise validators to prioritise their transactions, often in the context of MEV strategies. They represent an out-of-protocol reward stream that contributes directly to validator earnings.

In this light, MEV is no longer viewed solely as a flaw or “invisible tax,” but rather as a legitimate and measurable revenue stream. REV reframes MEV as a key performance metric, signalling a shift in how protocol economics are understood.

Metrics for every use case

Metrics should always be analysed in context, depending on what you’re trying to assess. 

Each investor or analyst must tailor their approach based on the type of project or protocol being evaluated.

Beyond the commonly cited metrics, there are many others worth considering, such as active wallet addresses, token inflation rates, developer activity, number of forks, and more.

The key is to focus on the most relevant indicators for a project's specific sector or use case.

For example, in DeFi and financial services, fast transaction speeds and strong security are essential to ensure instant and reliable payments. In contrast, scalability and low transaction costs are more critical in the gaming sector.