The DeFi boom in mid-2020 has introduced a concept previously unknown to the general public: Total Value Locked (TVL). As the crypto sector gradually recovers, some blockchain networks stand out for their number of assets locked up by investors. Check out the biggest crypto stocks this week.
cryptocurrencies with the highest values locked this week
Cryptocurrencies are becoming the object of attention of many investors. With the development of technology, several terms have appeared. In particular, Web3, DeFi and NFT. DeFi seems to be in full swing as more and more platforms are taking on it and blockchain networks are not exempt from it.
Indeed, many decentralized platforms are being created on these networks every day, while increasing their value at the same time. As a result, 15 public channels stood out and took first place in the rankings this week.
Ethereum (ETH) tops the list with a capitalization of around $46.7 billion. Binance (BNB), Tron (TRX), Avalanche (AVAX) and Solana (SOL) are ranked second to fourth. With respectively $6.51 billion, $5.81 billion, $3 billion and $2.88 billion.
However, other public networks have surprised investors and ranked among the biggest crypto stocks this week. Among others, DeFiChain (DFI) ranks eleventh with a capitalization of $471 million. As of July 21, networks such as Near Protocol (NEAR), Klaitn (KLAY) and Optimism (OP) have joined the ranking.
What is TVL and is it important for the future of the protocol?
TVL is an integral part of DeFi and blockchain. As the popularity of these protocols grows, the total locked cost is also of great importance. However, some concepts remain difficult to grasp. What is TVL and how does it work?
Essentially, the total value locked can be defined as the set of crypto assets locked by users on the platform. They can be used for many operations. These include cash mining, crop growing, betting, and lending.
However, the main question is whether TVL is so important for these blockchains. Some people think it’s temporary. Therefore, it cannot be relied upon to determine the future protocol, unlike TVE.
Market volatility can be a hindrance to TVL. However, DeFi networks continue to grow and attract new investors every day. Although Ethereum has more than half of the market, other networks such as Binance Smart Chain, Avalanche or Solana maintain their positions in the rankings.
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The world is changing and adaptation is the best weapon to survive in this changing universe. As a crypto community manager at the base, I am interested in everything that is directly or indirectly related to the blockchain and its derivatives. To share my experience and talk about a field that interests me, there is nothing better than writing informative and laid-back articles at the same time.