Market cap tvl ratio

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market cap tvl ratio

Nov 2021): 18.883.781 Bitcoin

Market Cap Bitcoin = Current Price x Circulating Supply of a Token

$1.023.178.017.544,9 = $54.182,90 x 18.883.781

How does the price of a coin calculate?

Beginners often only look at the price of a coin, which is a big mistake. At least it would be best to consider the circulating supply, the total supply, and the market cap.

The price of a coin is the Marketcap divided by the circulating supply of a Coin.

In the Bitcoin example from before, that would be.

$1.023.178.017.544,9 (Marketcap) / 18.883.781 (circulation supply) = $54.182,89 (price per Coin)

It is that simple if there were 18.000.000.000 instead of 18.000.000 Bitcoin circulating, the price would be only $54 instead of $54.000. Keep this in mind when you look at a new coin next time.

Market cap tvl ratio crypto

Many platforms like Aave, Uniswap, PancakeSwap, Spookyswap are providing tokens with the utility that makes this possible.

There is an important ratio to look at to assess a project, the

Market Cap / TVL Ratio

It shows the ratio of the market cap and how much of the market cap is locked up in smart contracts.

Let’s have a look at some examples, with numbers of 29.Nov 2021

AAVE

Market Cap: $3.156.837.340

Fully Diluted Valuation: $3.770.129.516

Total Value Locked (TVL): $15.083.062.952

Market Cap / TVL Ratio: 0.21

Fully Diluted Valuation / TVL Ratio: 0.25

💡 ratio of market capitalization over total value locked of this asset.

Market cap / tvl ratio

For example, Aave has a market cap-to-TVL ratio of 0.29, while that number stands at 2.40 for Uniswap and 0.85 for PancakeSwap. So by this gauge, Aave tokens are the cheapest out of the three.

What’s more, one can also use the market cap/TVL ratio to evaluate the current state of investor psychology in the DeFi market.
Dividing the total DeFi market cap by its TVL of $118.01 billion yields 0.70, indicating there’s no imminent danger of euphoria. I would only start getting concerned when that value hits 3 or 4.

Finally, one can use TVL to measure the integrity of DeFi platforms themselves.
Of course, we all want to earn high yields by depositing our tokens in DeFi protocols, but such offers from obscure, little-known platforms could very well be scams.

Market cap / tvl ratio meaning

Launched in September 2020, the SUSHI token has more than tripled in the last two years.

SushiSwap enables investors with diversification in the automated market maker or AMM market while providing additional features that are not present on other DEXs.

Abracadabra Money

One of the lesser-known cryptocurrencies is Spell Token (CRYPTO:SPELL) run by the Abracadabra project, valued at a market cap of US$395 million. Comparatively, the lending platform has attracted US$2.5 billion from investors, indicating a MCap to TVL multiple of 0.16.

It uses interest-bearing tokens to borrow a stablecoin known as MIM or Magic Internet Money which is pegged to the U.S.

Market cap / tvl ratio coingecko

Especially for beginners, there is a big confusion about the price and the actual value of a cryptocurrency. Most beginners would prefer to buy 1.000.000 Tokens of a worthless shitcoin than a fraction of a bitcoin.

In this article, I will try to explain different essential indicators when you try to evaluate the value of a crypto project.
We will look at the price of a token and how it is calculated, the market cap and fully diluted market capitalization, what the Total value locked, Trading Volume, Total Supply, and circulating supply mean and why they are essential.

There are different aspects and values to consider when evaluating Cryptocurrency and finding out if a protocol is undervalued or overvalued.

Let’s have a look at the different terms.

Market cap / tvl ratio chart

Marketcap Categorization

To assess the risk and growth potential, it helps categorize by market cap. Usually, there are Categories like:

  • Large-Cap
  • Mid-Cap
  • Small-Cap
  • Micro-Cap
  • Nano-Cap

We will categorize them as follows.

LARGE-CAP

Marketcap $10 Billions

At the moment, there are 22 Coins with a large Marketcap.

Most stable.

MID-CAP

Marketcap: $1 Billion to $10 Billions

At the moment, there are 108 Coins with a midsize Marketcap.

More volatile than Large-Caps but still stable.

SMALL-CAP

Marketcap: $100 Million to $1 Billion

At the moment, there are 389 Coins with a small Marketcap.

Usually, less history and traction in the market are also riskier.

Market cap / tvl ratio là gì

MICRO-CAP

Microcap coin can move 30% in 5 minutes, and nobody even blinks, if BTC moves 3%

Marketcap: $10 Million to $100 Million

Very risky but can be very profitable. (100x+)

At the moment, there are 820 Coins with a Micro Marketcap.

NANO-CAP

Marketcap <$10 Million

Super risky, high growth potential, but it can make you life-changing money. (1000x+)

At the moment, there are thousands of Coins with a nano Marketcap.

Total value locked (TVL)

The TVL in cryptocurrencies is the sum of all assets that are locked up somehow. This could mean that digital assets are currently staked, people are providing liquidity or binding their coins in another smart contract in a specific protocol, which also means that they can not be sold immediately due to lockup times, and so on.

Mkt. cap / tvl ratio

Tài chính phi tập trung (DeFi) đã là một chủ đề nóng trong không gian blockchain gần đây. Nhưng để tạo ra sự khác biệt, nó cần được áp dụng. Đó là lý do tại sao khái niệm Total Value Locked trong DeFi là một số liệu rất quan trọng.

Total Value Locked (Tổng Giá Trị Bị Khoá) là tham số đại diện cho số tài sản hiện đang được đặt trong một giao thức DeFi cụ thể.
Giá trị này hoàn toàn không có nghĩa là đại diện cho số dư nợ, mà là tổng lượng cung cấp cơ bản được bảo đảm bởi một ứng dụng cụ thể và / hoặc bởi DeFi nói chung. Giá trị này thường được tính bằng ba thành phần khác nhau và chúng là TVL tính bằng USD, Bitcoin và Ethereum

Chính vì có tham số Total Value Locked nên rất nhiều người sẽ so sánh giá trị TVL của các Dapp DeFi, với lập luận rằng giá trị bị khóa càng cao trong dapp DeFi thì có nghĩa là nền tảng DeFi đó tốt hơn.

Market cap vs tvl ratio

Mặt khác, các nhà quản lý dự trữ Kyber có thể cung cấp tính thanh khoản cho nhiều mã thông báo từ cùng một nhóm ETH. Tức là 1 ETH có thể phục vụ 10 nhu cầu thanh khoản khác nhau của mã thông báo ERC20 trên Kyber, trong khi Uniswap sẽ yêu cầu 10 ETH để phục vụ 10 mã thông báo đó. Do đó, Kyber Network yêu cầu ít tài sản bị khóa hơn nhiều để cung cấp cùng mức thanh khoản (được xác nhận bởi chênh lệch giá chặt chẽ và mức trượt giá thấp trên Kyber) và do đó, 1 triệu đô la bị khóa trong Kyber không bằng 1 triệu đô la bị khóa Uniswap hoặc $ 1 triệu bị khóa trên Bancor.

Tóm lại, TVL không phải là một thước đo tốt để so sánh các nhà cung cấp thanh khoản.

Bạn có thể xem tổng TVL đang bị khoá trong thị trường DeFi tại https://defipulse.com/

CẢNH BÁO: Đầu tư vào các sản phẩm tài chính tiềm ẩn rất nhiều rủi ro mà có thể không phù hợp với một số nhà đầu tư.

Ren market cap tvl ratio

Total value locked (TVL), in the context of cryptocurrency, represents the sum of all assets deposited in decentralized finance (DeFi) protocols earning rewards, interest, new coins and tokens, fixed income, etc. Because blockchain services are developed on peer-to-peer networks, there is no central authority to govern, build, or improve the ecosystem.

Therefore, cryptocurrency investors themselves receive consideration for building these networks from the bottom up with their coins and tokens.

The metric is an important gauge of the overall DeFi market. Currently, TVL has reached a stunning $169 billion globally, with Ethereum deposits getting the biggest piece of the pie, compared to just $400 million two years ago.

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