TVL Isn't Always Telling the Truth 🤔 TVL has become one of the default ways to compare DeFi protocols, including projects like $AAVE . It's useful, but I think people often give it more weight than it deserves. A higher TVL doesn't automatically mean a protocol has more active users, generates more revenue, or has stronger long-term fundamentals. Sometimes TVL grows simply because the price of the underlying collateral increases. Other times, temporary incentives attract liquidity that disappears as soon as rewards are reduced. That's why I like looking at TVL alongside borrowing activity, protocol revenue, and user retention. Capital is important, but understanding why that capital is there is usually much more valuable than the headline number itself. #Macro Insights# #Altcoin Season#