From $630M in 2020 to over $172B in 2022, that's a huge jump in combined TVL across all DeFi platforms.
Is TVL a more reliable metric than market cap?
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From $630M in 2020 to over $172B in 2022, that's a huge jump in combined TVL across all DeFi platforms.
Is TVL a more reliable metric than market cap?
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Massive, massive volume! That only shows how much money is in crypto and that number is only on DeFi.
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If my math is correct, that's a 27,201% plus increase! Have you seen a two-year growth like that in traditional finance? 😂
Just wowing! And nope, haven't heard any rumor of it happening in traditional finance, never in a million years :D
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Yes, good financial magic seems to happen more often in cryptoverse
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Reminds me of the Mandrake mechanism. The question is will they really give up their monopoly on such financial magic?
I don't really think so because TVL is only for liquidity in the swap pool and this means you are not even considering the amount of money in the exchanges. Both the TVL and market cap have their own advantages but I think market cap also includes the TVL in there because there will be arbitrage otherwise.
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Though not familiar with UST and LUNA, no question about the size of its market cap. How about its TVL?
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I don't know because I was never part of the pool but I think the TVL dried up because of everything that went on with UST.
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Different metrics.
Market cap is more akin to stock which is how most crypto is viewed.
TVL is DeFi and shows how much financial based activity is starting to take place.
So yes I would put more weight on TVL as a reflection of growth and resiliency than market cap. TVL tells what people are doing with their crypto.
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How is TVL related to staking or powering up? Or is it related to staking? When checking a particular crypto project, I am inclined to be more trusting when I see a huge amount of staked tokens compared to its liquid form.