How is TVL related to the crypto industry?

1 answers

• Nov 26, 2021 · 3 years ago
  TVL, or Total Value Locked, is a key metric in the crypto industry that measures the total value of assets locked in decentralized finance platforms. It is an important indicator of the size and activity of the DeFi ecosystem. TVL reflects the amount of capital that users have invested in DeFi protocols, such as lending, borrowing, and yield farming. As TVL increases, it signifies a growing interest in DeFi and can attract more investors and liquidity to the crypto industry. This can lead to increased trading volumes, price appreciation, and overall market growth. However, it's important to note that TVL is just one metric and should be considered alongside other factors when evaluating the health and potential of the crypto industry.
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