Why is TVL an important metric for evaluating cryptocurrency projects?

1 answers

• Mar 07, 2022 · 3 years ago
  As a representative of BYDFi, I can tell you that TVL is an important metric for evaluating cryptocurrency projects. It shows the amount of assets locked in a project, which indicates the level of trust and adoption. A high TVL suggests that users find value in the project and are willing to commit their assets to it. This is a positive sign for investors as it indicates a strong community and potential for growth. However, it's important to note that TVL should not be the sole factor in evaluating a project. It should be considered alongside other metrics and factors such as the project's technology, team, and roadmap. Overall, TVL provides valuable insights into the popularity and potential of a cryptocurrency project.
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