A project's TVL went up. Does that necessarily mean money flowed in?
Here's how I understand it: a rise in TVL could be due to short-term funds attracted by incentives. Once the incentives end, those funds may quickly flow out.
TVL is often used to compare how much money projects or public blockchains have attracted, making it one of the commonly used DeFi metrics.
My rule of thumb: a high TVL doesn't mean a project is safe. Protocols with more funds are also more likely to attract attackers.
By the way: $ETH is currently at 2244.98 (24h +1.02%).
#ETH
Here's how I understand it: a rise in TVL could be due to short-term funds attracted by incentives. Once the incentives end, those funds may quickly flow out.
TVL is often used to compare how much money projects or public blockchains have attracted, making it one of the commonly used DeFi metrics.
My rule of thumb: a high TVL doesn't mean a project is safe. Protocols with more funds are also more likely to attract attackers.
By the way: $ETH is currently at 2244.98 (24h +1.02%).
#ETH