Altcoins Talks - Cryptocurrency Forum
Archive => Sorting Box => Topic started by: Henri9009 on March 25, 2021, 10:39:20 PM
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Hi all!
I understand what is the Market Cap.
I'm having a hard time finding information about what precisely means the TVL Ratio.
CoinGecko info: Ratio of market capitalization over total value locked of this asset. A ratio of more than 1.0 refers to its market cap being greater than its total value locked.
Can anybody explain me what it means? I don't fully understand.
When it's over 1, for instance, it's a bad sign or what?
Another question: why on CoinGecko sometimes there's that information (Market Cap/TVL Ratio), and sometimes not?
Thanks a lot!
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I'm having a hard time finding information about what precisely means the TVL Ratio.
TVL refers to the fiat value (USD of other currencies) of tokens locked in a DeFi smart contract
CoinGecko info: Ratio of market capitalization over total value locked of this asset. A ratio of more than 1.0 refers to its market cap being greater than its total value locked.
Can anybody explain me what it means? I don't fully understand.
With the description of TVL above, you should know by now.
When it's over 1, for instance, it's a bad sign or what?
I cannot say if it's bad or good. It just means that the number of tokens on holders hand and on exchanges are more than those locked.
Another question: why on CoinGecko sometimes there's that information (Market Cap/TVL Ratio), and sometimes not?
That's because MC/TVL ratio only applies to DeFi related projects.
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Thanks Zed0X!
So, "locked" means that? https://academy.binance.com/en/glossary/token-lockup (https://academy.binance.com/en/glossary/token-lockup)
The owners cannot sell them in the moment?
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~ The owners cannot sell them in the moment?
It's what locked exactly means.
They'll have to unlock/unfreeze/unstake or whatever term the platform uses in order to sell/move it again.