To gauge cryptocurrency market sentiment using DeFi data, analyze key metrics like Total Value Locked (TVL), trading volume, and liquidity pool activity. Rising TVL signals optimism as users lock funds into protocols, reflecting confidence. High trading volumes on decentralized exchanges (DEXs) indicate active participation and bullish sentiment, while stagnant or declining volumes may suggest caution or bearishness. Monitor stablecoin inflows—surges often hint at incoming investments, a positive sign. Additionally, track lending and borrowing rates; increased borrowing can show speculative bullishness, while high repayment rates might signal profit-taking or fear. Social sentiment on X, paired with these on-chain insights, sharpens the picture. For example, search X posts for buzz around specific DeFi projects alongside their data trends. Combining these indicators offers a real-time pulse on market mood, guiding smarter crypto decisions.