The DeFi boom in the mid-2020s led to a concept previously unknown to the general public: Total Value Locked (TVL). As the cryptocurrency sector gradually recovers, some blockchain networks stand out in terms of the amount of assets locked up by investors. Check out the biggest cryptocurrency stocks of the week.
Cryptocurrencies with the largest values locked this week
The Digital currencies It has become the focus of attention of many investors. With the development of technology, several terms have emerged. Most notably, Web3, DeFi, and NFTs. DeFi seems to be in full expansion as more and more platforms take on it and blockchain networks are not exempt from it.
In fact, many decentralized platforms are being created on these networks every day, increasing their value at the same time. As a result, 15 public channels emerged this week and occupied the top positions in the ranking.
Ethereum (ETH) tops the list with a capitalization of around $46.7 billion. Binance (BNB), Tron (TRX), Avalanche (AVAX), and Solana (SOL) rank second through fourth. Valued at $6.51 billion, $5.81 billion, 3 billion, and $2.88 billion, respectively.
However, other public broadcasters surprised investors and Rank Among the biggest cryptocurrency stocks this week. Among others, DeFiChain (DFI) which ranks eleventh with a capitalization of $471 million. As of July 21, networks such as Near Protocol (NEAR), Klaytn (KLAY), and Optimism (OP) have joined the rating.
What is TVL and is it so important to the future of the protocol?
TVL is an integral part of DeFi and the blockchain. With the increasing popularity of these protocols, the total value locked is also of great importance. However, some concepts are still difficult to grasp. What is TVL and how does it work?
Basically, the total value locked can be defined as the pool of crypto assets that users lock on the platform. These can be used for many operations. In particular, liquidity mining,Yield farmingor even lending.
However, the main question is whether TVL is so important for these blockchains. Some people think it’s temporary. Therefore, it is not reliable to determine the receiver of the protocol unlike TVE.
Market volatility can be a hindrance to TVL. However, DeFi networks continue to grow and gain 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 ranking.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and introduce me to a field that fascinates me, nothing is better than writing useful and convenient articles at the same time.