The Due Diligence Framework
A systematic 7-layer approach to evaluating any crypto project, with current 2024-2026 protocol case studies and the toolkit that professionals actually use.
3 min · expert · part of Protocol Analysis & Due Diligence
What you'll learn
- Why Most Projects Fail
- The 7-Layer Analysis Framework
- Red Flag Checklist
Key terms
- Due diligence
- A comprehensive investigation and analysis before making an investment decision.
- Moat
- Competitive advantage that protects a project from competitors, like network effects, technology, or user lock-in.
- TVL (Total Value Locked)
- Sum of token balances held by a protocol, valued in USD. Standard DeFi metric. Total DeFi TVL was ~$160B mid-2026 per DefiLlama.
- DefiLlama
- The authoritative dashboard for protocol TVL data across 100+ blockchains. Methodology: docs.llama.fi.
- Token Terminal
- Aggregates revenue, fees, P/E and P/S ratios for crypto protocols. The most "Wall Street style" crypto analytics platform.
- Messari
- Crypto research platform covering 40,000+ assets with analyst-verified intelligence. Pioneered "Disruption Factor" framework.
- Dune Analytics
- SQL-based community dashboard platform for on-chain data across 100+ blockchains. Free public dashboards + paid tier.
- Glassnode
- On-chain analytics platform with Bitcoin and Ethereum cycle indicators (MVRV, SOPR, NUPL).
- Nansen
- Wallet labeling and "smart money" tracking. 500M+ tagged addresses; tracks profitable historical traders.
- OpenZeppelin / CertiK / Trail of Bits
- Major smart contract audit firms. Audit pricing typically $25K-$250K per engagement.
Read the full lesson in the CryptoBipto app.
Open lessonEducational only — not financial advice.