How exactly is the total value locked (TVL) often mentioned in the news calculated?
One thing to note: TVL is not the same as a protocol’s revenue, user count, or trading volume.
TVL can also rise because of short-term funds attracted by incentives. Once the incentives end, those funds may quickly withdraw.
Remember this—it’s more useful than memorizing a bunch of jargon. Cross-check information from multiple sources before making a decision; don’t just take one source’s word for it.
Current price: $ETH is trading at 2230.73 (24h -2.09%).
#ETH
One thing to note: TVL is not the same as a protocol’s revenue, user count, or trading volume.
TVL can also rise because of short-term funds attracted by incentives. Once the incentives end, those funds may quickly withdraw.
Remember this—it’s more useful than memorizing a bunch of jargon. Cross-check information from multiple sources before making a decision; don’t just take one source’s word for it.
Current price: $ETH is trading at 2230.73 (24h -2.09%).
#ETH