TVL vs Market Cap in DeFi - The Difference is TOO BIG скачать в хорошем качестве

TVL vs Market Cap in DeFi - The Difference is TOO BIG

In the world of decentralized finance (DeFi), metrics like Total Value Locked (TVL) and Market Capitalization (Market Cap) play a crucial role. However, understanding the key differences between these two metrics can be a challenge. In this eye-opening video, we delve into the intricacies of TVL and Market Cap, debunking common misconceptions along the way. Join us as we break down the fundamentals: Market Cap represents the total value of all coins in circulation multiplied by their individual prices, while TVL encompasses all assets held within a specific protocol, including staked funds, liquidity pools, borrows, and more. We even explore the expansive TVL landscape using DefiLlama, revealing how the numbers can significantly inflate when accounting for various factors. But beware of the misconceptions! Discover why TVL doesn't necessarily equate to security, how it can be artificially inflated, and why it doesn't always indicate the success of a protocol. We shed light on the nuances and remind viewers that not all locked assets are equally productive or beneficial. So why does TVL matter? We unveil its significance as an indicator of usage, user trust, and ecosystem activity within the DeFi space. By the end of this video, you'll have a solid understanding of TVL and Market Cap, empowering you to navigate the world of DeFi metrics with confidence. Don't miss out on this captivating exploration! Like, subscribe, and join the conversation to show your support and stay updated on more informative videos like this. 00:00 Intro 00:10 Market Cap 00:36 TVL 01:01 DeFiLlama 01:48 TVL Misconceptions 03:24 TVL Usage Useful links: https://www.coingecko.com/ - Coingecko https://defillama.com/ - DeFiLlama GitHub: https://github.com/BlockTheChainz Leave a comment, like, subscription and enjoy our videos! If you are interested in collaboration contact us! We are looking for developers to hire, let us know! PM: contact.blockthechain@gmail.com