What does TVL actually reflect?
TVL is calculated based on the market prices of assets. Changes in asset prices alone can therefore cause TVL to fluctuate, even when no funds flow in or out. TVL is not the same as a protocol’s revenue, nor does it indicate the number of users or trading volume.
Many protocols on Ethereum hold considerable amounts of ETH or ETH derivative tokens in their locked assets, so fluctuations in the price of ETH affect their TVL.
Coin mentioned above: $ETH . Current price: 1824.26, 24h: -4.45%.
Data is for reference only. Make your own decisions.
TVL is calculated based on the market prices of assets. Changes in asset prices alone can therefore cause TVL to fluctuate, even when no funds flow in or out. TVL is not the same as a protocol’s revenue, nor does it indicate the number of users or trading volume.
Many protocols on Ethereum hold considerable amounts of ETH or ETH derivative tokens in their locked assets, so fluctuations in the price of ETH affect their TVL.
Coin mentioned above: $ETH . Current price: 1824.26, 24h: -4.45%.
Data is for reference only. Make your own decisions.