Let's talk about total value locked (TVL).
TVL is calculated based on the market prices of assets, so price fluctuations alone can cause TVL to change, even when no funds flow in or out.
One thing that's easy to overlook: when comparing projects, TVL can be considered alongside metrics like fees, revenue, and active users. Looking at TVL alone can give you a misleading impression.
When looking at changes in TVL, first distinguish whether they're caused by token price fluctuations or by actual funds flowing in or out.
Relevant token: $ETH Current price: 2543.86 (24h +1.65%).
#ETH
TVL is calculated based on the market prices of assets, so price fluctuations alone can cause TVL to change, even when no funds flow in or out.
One thing that's easy to overlook: when comparing projects, TVL can be considered alongside metrics like fees, revenue, and active users. Looking at TVL alone can give you a misleading impression.
When looking at changes in TVL, first distinguish whether they're caused by token price fluctuations or by actual funds flowing in or out.
Relevant token: $ETH Current price: 2543.86 (24h +1.65%).
#ETH