Ethereum TVL Dominance Hits All-Time Low
Bitcoin, the world’s largest and most expensive cryptocurrency, is sitting large-and-in-charge at a market capitalization of $833 billion. However, when it comes to new chains like Ethereum, Terra, Solana, and others, seasoned crypto investors are increasingly looking away from this tried-and-true figure in favor of a metric which more closely reflects usability, trust, and value circulating on a blockchain. It’s called Total Value Locked (TVL).
TVL is a metric which measures the total amount of money sitting in DeFi protocols on a blockchain. Increasingly, TVL is measured against market capitalization to rationalize or substantiate the market capitalization of a chain – it’s one of hundreds of ways that crypto maximalists have thought up to “value” a chain, find up-and-comers, and decide how to invest. However, if you’re lost and just YOLOing into coins – we’re pretty sure that’s okay too (nobody said this had to be a science.)