Financial metrics#
- Market Cap is how much the tokens are worth in dollars
- TVL - total locked value - is how much people lock (commit) to business (more on this later
- A higher TVL often indicates more trust and utility (people locking more of their tokens into business)
- You can see that while Ethereum is about 1/4th of Bitcoin in terms of MarketCap, it is 10X in TVL
- Meaning people do a lot of business on Ethereum (which is really where De-Fi started and developed)