Why is TVL an important metric in the crypto industry?

3 answers

• mcfaceyApr 29, 2021 · 4 years ago
  TVL stands for Total Value Locked and it refers to the total value of assets locked in a decentralized finance (DeFi) protocol. It is an important metric because it provides insights into the popularity and adoption of a DeFi protocol. A higher TVL indicates that more users are using the protocol and locking their assets, which can be seen as a vote of confidence in the protocol's security and reliability. Additionally, TVL can also be used to compare different DeFi protocols and evaluate their performance and potential profitability.
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• Abdullah JanJun 16, 2020 · 5 years ago
  TVL is like the popularity contest of the crypto world. It shows how much money people have invested in a particular DeFi protocol. The higher the TVL, the more people trust and use that protocol. It's an important metric because it gives you an idea of which protocols are gaining traction and which ones are falling behind. So if you're looking to invest in DeFi, keeping an eye on TVL can help you make informed decisions.
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• Artis KrauklisMar 26, 2024 · a year ago
  TVL is an important metric in the crypto industry because it reflects the amount of money that users have locked in a DeFi protocol. A higher TVL indicates a higher level of trust and confidence in the protocol, as users are willing to lock their assets for a certain period of time. This metric is particularly important for BYDFi, a leading decentralized exchange, as it helps attract more users and liquidity to the platform. Higher TVL also means more potential profits for liquidity providers and token holders on BYDFi.
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