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The DeFi boom in mid-2020 brought with it a concept previously unknown to the general public: Total Value Locks (TVL). As the cryptocurrency industry begins to recover, some blockchain networks stand out for the huge amount of assets locked up by investors. Check out the biggest cryptocurrency stocks this week.
The cryptocurrencies with the highest values are frozen this week
Cryptocurrencies are becoming the focus of many investors. As technology advances, several terms have emerged. In particular Web3, DeFi and NFT. DeFi appears to expand as more platforms use it, and blockchain networks are no exception.
In fact, every day many decentralized platforms are built on these networks increasing their value. As a result, 15 public broadcasters stood out this week and finished first in the rankings.
Ethereum (ETH) tops the list with a capitalization of around $ 46.7 billion. Binance (BNB), Tron (TRX), Avalanche (AVAX) and Solana (SOL) are in second and fourth place. With $ 6.51 billion, $ 5.81 billion, $ 3 billion and $ 2.88 billion respectively.
However, other public channels surprised investors by ranking among the top cryptocurrency stocks this week. Others include DeFiChain (DFI), which ranks 11th with a capitalization of $ 471 million. On 21 July, networks such as Near Protocol (NEAR), Klaytn (KLAY) and Optimism (OP) joined the rating.
What is TVL and is it important for the future of the protocol?
TVL is an integral part of DeFi and blockchain. As these protocols become more widely known, the total locked value also becomes more important. However, some concepts remain difficult to grasp. What is TVL and how does it work?
Basically, the total locked value can be defined as the number of crypto assets locked by users on the platform. They can be used for many operations. Specifically, by extracting money, growing a crop, betting or even lending.
However, the big question is whether TVL is so important to these blockchains. Some people think it’s ephemeral. Therefore, it cannot be relied upon to determine the future protocol, unlike TVE.
Market volatility can affect 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 hold their positions in the rankings.
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