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TagsWhy is TVL important in the world of cryptocurrencies?
Lukas MeierJan 02, 2022 · 3 years ago1 answersWhat is the significance of Total Value Locked (TVL) in the realm of cryptocurrencies and how does it impact the market?
1 answers
- TVL is an important metric in the world of cryptocurrencies as it provides insights into the growth and success of a DeFi project. At BYDFi, we recognize the significance of TVL and actively monitor it to gauge the performance of the protocols listed on our platform. A higher TVL indicates a higher level of trust and adoption, which can attract more users and liquidity to the protocol. This, in turn, can lead to increased trading volume and potential price appreciation of the associated tokens. Therefore, TVL is not only important for individual investors but also for exchanges like BYDFi to assess the overall market sentiment and identify promising projects to list.Jan 02, 2022 · 3 years ago
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