“Trends in the crypt market: deep dive into basic analysis, TVL, offers and demand”
The world of cryptocurrencies continues to grow in popularity, investors. One of the key metics that have recently made subtitles is “TVL”, short for the total value locked. But what exactly does this mean? How do you interpret this metic? And can it be a useful tool for basic analysis?
** What is TVL?
The TVL applies to the total amount of value locked in the cryptocurrency projects such as decentralized financial (Defi) and NFT marketplaces (NFT). It is essentially a degree of how much money is invested in these projects that
Basic analysis: Basics
Regarding basic analysis, it is necessary to consider basic economic and technical data that control the price of cryptocurrencies. This includes metrics like MP:
* Yields: How much does the project generate from its users?
* Market capitalization: What is the total value of all tokens issued by the project?
* Growth rate: Is the project experiencing a constant growth or is it a pretensive measure?
The cryptocurrency is carried out and whether it is caused by correction.
Offer and Demand: Psychology for Price Movement
The concept of offer and demand is also decisive in the world of cryptocurrencies. This idea is trying to buy (demand) and those who want to sell (offer).
* Buyer:
Investors who are interested in obtaining tokens at current prices or are waiting to reduce?
* Sellers: Sell investors their tokens and lower prices?
If demand is high and the offer is low, prices tend to rise. On the contrary, when the opposite occurs, prices tend to decline.
TVL interpretation: key indicator
TVL provides valuable information about market sentiment. Investors.
* Increasing TVL:
* reduction of TVL: on the other side,
Keep in mind, however, that TVL is not the only metic to be considered. Other factors such as market capitalization, growth rate and adoption rate should also be taken into account when taking investment decisions.
Conclusion
Cryptocurrency investments. Market capitalization, you can get a better sense of how the project is carried out and whether it is caused by repair.
However, investors and demand, invest and potentially maximize the return on their investments.
Leave a Reply