What does TVL really tell us?
TVL is commonly used to measure how much capital a project or blockchain has attracted, making it a widely used DeFi metric.
TVL is calculated using the market value of assets, so changes in asset prices can affect TVL even when no funds flow in or out.
The most important thing to keep in mind when managing funds: a higher TVL doesn’t mean greater safety. Protocols holding more funds are also more likely to be targeted by hackers.
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