$ETH: Crypto's 20 Billion DeFi Jump May Be Price Inflation Live: $ETH 2,392.6 (-4.89% 24h) · 24h range 2,361.2-2,511.6 · 19.11B USDT 24h vol
DeFi protocols added roughly 20 billion in total value locked, and CryptoSlate's read on the number is unflattering: a big slice of it may be price inflation rather than fresh money.
Is crypto actually growing, or just getting more expensive?
Total value locked counts prices, not only deposits
TVL is the dollar value of every token parked inside a protocol's smart contracts. You get it by multiplying the number of tokens locked by what those tokens cost right now.
That's the trap CryptoSlate points at. A 20 billion jump can read as adoption while being mostly a revaluation of assets that were already sitting there. The way to separate the two is to watch token counts, not dollar figures.
$ETH #ETH #CryptoNews #CoinBatmi
DeFi protocols added roughly 20 billion in total value locked, and CryptoSlate's read on the number is unflattering: a big slice of it may be price inflation rather than fresh money.
Is crypto actually growing, or just getting more expensive?
Total value locked counts prices, not only deposits
TVL is the dollar value of every token parked inside a protocol's smart contracts. You get it by multiplying the number of tokens locked by what those tokens cost right now.
That's the trap CryptoSlate points at. A 20 billion jump can read as adoption while being mostly a revaluation of assets that were already sitting there. The way to separate the two is to watch token counts, not dollar figures.
$ETH #ETH #CryptoNews #CoinBatmi