everyone thinks seeing an 18,851% spike in tvl means a new ecosystem is about to explode, but actually you are probably just exit liquidity for a ghost chain.
we have all been there chasing green percentage prints on defillama only to realize our $ETH or $SOL is locked in a pool with zero real volume and paper-thin liquidity.
take alllayer as a classic case study, ser. their tvl shot up 18,851% over the past seven days, but ngl that kind of vertical pump almost always points to a tiny starting base rather than actual organic adoption. it is easy to print insane growth percentages when you are going from practically zero dollars to a couple hundred grand.
meanwhile something like $SHIB on shibarium posting a modest 165% jump tells a much healthier story because it is built on an actual user base with sticky capital. huge percentage multiples look amazing on a timeline chart, but without sticky volume you are just walking into a trap.
are you guys still tracking raw tvl growth percentages or have you switched to looking at active daily volume instead?
#CryptoTrading #DeFi #Altcoins
we have all been there chasing green percentage prints on defillama only to realize our $ETH or $SOL is locked in a pool with zero real volume and paper-thin liquidity.
take alllayer as a classic case study, ser. their tvl shot up 18,851% over the past seven days, but ngl that kind of vertical pump almost always points to a tiny starting base rather than actual organic adoption. it is easy to print insane growth percentages when you are going from practically zero dollars to a couple hundred grand.
meanwhile something like $SHIB on shibarium posting a modest 165% jump tells a much healthier story because it is built on an actual user base with sticky capital. huge percentage multiples look amazing on a timeline chart, but without sticky volume you are just walking into a trap.
are you guys still tracking raw tvl growth percentages or have you switched to looking at active daily volume instead?
#CryptoTrading #DeFi #Altcoins