Defi

Screening Filters

1. Market Capitalization ≥ 200,000,000

   • Purpose: Focus on established, sizeable DeFi projects rather than very small or illiquid ones.
   • Rationale:
     • For a “current state / analysis of DeFi”, you want projects that are meaningful to the ecosystem, not micro‑caps that can distort the picture.
     • A minimum market cap of $200M selects protocols that:
       • Have passed a basic market validation hurdle
       • Are more likely to have real users, TVL (total value locked), and traction
     • This helps ensure the analysis reflects the broader DeFi sector, not fringe or speculative experiments.

2. 24h Turnover (Trading Volume) ≥ 10,000,000

   • Purpose: Ensure the assets are actively traded and reasonably liquid.
   • Rationale:
     • High daily trading volume suggests:
       • Active market participation
       • Tighter spreads and more reliable pricing
     • For analyzing the state of DeFi, you want assets that the market currently cares about. Low‑volume tokens can be:
       • Easy to manipulate
       • Poor indicators of genuine investor sentiment
     • This filter focuses the analysis on DeFi assets with significant current interest and activity.

3. Quarter Price Change (%) ≥ -10

   • Purpose: Exclude projects that have severely underperformed in the last quarter.
   • Rationale:
     • A floor of -10% quarterly performance removes tokens that are collapsing or facing acute distress (e.g., hacks, fundamental failures, or abandonment).
     • While some underperformance is normal, extreme drawdowns can:
       • Skew the perception of the “average” health of DeFi
       • Reflect idiosyncratic events rather than sector‑wide dynamics
     • Limiting to assets that have not dropped more than ~10% in the quarter helps capture projects that still have some market confidence and ongoing relevance, making them more useful as bellwethers for the sector.

4. Correlation with BTC ≤ 0.85

   • Purpose: Find DeFi tokens whose price behavior is not almost entirely dictated by Bitcoin.
   • Rationale:
     • If a token is extremely tightly correlated with BTC, it’s harder to isolate:
       • Sector‑specific sentiment (DeFi)
       • Versus broad crypto market beta (driven by BTC)
     • By capping correlation at 0.85, the screener:
       • Keeps assets that still move with the crypto market, but
       • Filters out those that are basically just “BTC proxies”
     • This makes it easier to interpret price and volume movements as at least partly DeFi‑specific, which is precisely what you want when analyzing the state of Decentralized Finance.

Why the Results Match the User’s Question

• The user is asking about the state/analysis of DeFi, not about fringe or illiquid tokens.
• The market cap and 24h turnover thresholds ensure the sample is made up of relevant, established, and actively traded DeFi projects, which better represent the sector.
• The quarterly performance filter removes extreme losers that might be driven by isolated problems rather than sector‑wide trends, giving a cleaner signal of general health.
• The BTC correlation cap ensures that price action in the selected tokens reflects DeFi‑specific dynamics (fundamentals, adoption, regulatory news, etc.) rather than just mirroring Bitcoin.

Together, these filters construct a more representative, liquid, and DeFi‑specific subset of assets that can be used to infer and discuss the current condition and trends of the overall DeFi ecosystem.