How is the total locked value related to market cap and price?
Asked 4 years ago
Hi, I'm trying to understand what total locked value locked means and its relation to the Defi market.
Cameron Barnes
Wednesday, March 23, 2022
Total Value Locked (TVL) is the sum of cryptocurrencies deposited in a DeFi smart contract. TVL has emerged as a major indicator for assessing interest in DeFi projects. It comprises all the tokens locked in all the products and services that the protocol services, such as staking, lending, and liquidity pools. However, TVL does not include the returns that these deposits are projected to generate. To find the market cap, multiply the circulating supply with the price.
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