TVL /Mcap

Ratio of locked value to market cap, measuring DeFi adoption strength.

TVL = Total Value Locked.

This is the total value that has been locked in the protocol divided by the project’s current market capitalization. It is to be expected that a large project will have a higher TVL than a small project. Comparing these two metrics allows anomalies to be identified.

A high TVL/Mcap ratio indicates high usage of the project’s decentralized finance features and above-average investor confidence.

Source: defillama.com

This metric is part of the Liquidity category

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