TVL change 30d
30-day TVL variation for sustainable liquidity trend analysis
The variation in TVL (Total Value Locked) is an indicator of decentralized finance, demonstrating investor confidence in this protocol. The variation over 30 days allows us to identify more sustainable liquidity trends. Unlike weekly tracking, this period highlights structural movements: a gradual increase in confidence, or, conversely, a continuous withdrawal of capital.
A steady increase over 30 days reflects growing adoption of the protocol. Investors are placing funds there on a sustainable basis, often thanks to a combination of attractive returns, perceived security, and useful features. This inspires confidence and can support an increase in the price of the associated token.
A steady decline over 30 days is often more worrying than a simple weekly variation. It may result from a loss of interest in favor of a competing project that attracts more liquidity, or from a decrease in returns, or even from an erosion of confidence after a technical or governance incident.
A sharp increase in TVL over 30 days may signal a protocol that is rapidly gaining market share. But beware of the “pendulum effect”: a massive influx of liquidity may be followed by an outflow, especially if it is driven by a fad or temporary farming.
A sharp drop in TVL over 30 days is a serious warning sign. It may be symptomatic of a sustained flight of investors. In this case, it is advisable to compare the protocol with others with the same narrative to see where capital is actually moving.
On the DefiLlama chart, try changing the display currency: USD-ETH or USD-SOL, for example. The chart will look very different, as it will be less influenced by overall market price fluctuations.
Source: defillama.com. Clicking on the figure takes you to the chart on DefiLlama.