#ЛюбимыйТокен $ARB $ETH about the meaning. 📊 TVL is the main indicator for any DeFi user
In crypto, everyone is used to measuring capitalization. The higher it is, the cooler the project. But the capitalization of tokens does not always reflect the value of the project itself.
For example, in the top 20 by capitalization there are cryptocurrencies Cardano, Polkadot, Bitcoin Cash and the like.
⚖️ Therefore, if you want to evaluate the real value of a specific cryptocurrency or application, then it would be more correct to use TVL:
TVL (Total value locked) shows the total value of all digital assets located on a specific network/application.
A high TVL reflects the confidence of users and investors in a particular network or application:
• For example, the largest TVL among applications are Lido, EigenLayer, AAVE, Maker and Uniswap - all of these applications are leaders in their niches and enjoy great trust.
• And in the top 5 by TVL among networks and blockchains are Ethereum, Tron, BSC, Solana and Arbitrum. There are no Cardano or Polkadot here even close.