Is TVL Still a Valid Metric for Success? 📉



In DeFi, we always hear about Total Value Locked (TVL). It’s often used to show how "big" a project is. But is it the only thing that matters? Not necessarily.

What to look for besides just TVL:

Volume-to-TVL Ratio: A protocol might have $1B in TVL, but if nobody is actually using it to trade, it’s just "lazy" capital.

Number of Active Users: Real growth comes from real people using the platform daily, not just a few whales parking their money.

Sustainability of Yield: Where is the reward coming from? If it’s just printing new tokens, it might not last. Look for projects with real revenue.

Data is important, but you have to know how to read between the lines. Always dig deeper!
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