TVL on Real-World Assets Spikes Up 700% as Stablecoin and CBDC Popularity Grows in 2023 - The Stock Market News (2024)

FAQs

What is the TVL in crypto? ›

Total Value Locked (TVL) is a metric used to measure the total value of digital assets that are locked or staked in a particular decentralized finance (DeFi) platform or decentralized application (dApp). Advertisem*nts. The higher the TVL, the more trustworthy the platform or dApp is perceived to be.

The TVL ratio is calculated by dividing the total market value of assets locked by the total value locked (TVL). The TVL ratio can help determine whether a DeFi asset is undervalued or overvalued. If the ratio is below 1, the asset is generally undervalued and more attractive to investors.

As of the time of writing, there are 35 stablecoins in existence, boasting a combined market capitalization of $157 billion. Tether (USDT) holders, with an industry-leading market cap of $114.07 billion, accounted for just over 80% of the total stablecoin addresses, followed by USDC and BUSD.

Tether, issuer of the world's largest stablecoin, said that it will stop minting the dollar-linked USDT token on the Algorand and EOS blockchains as part of a "strategic transition to prioritize community-driven blockchain support."

Top Blockchains by Total Value Locked (TVL)

With a Total Value Locked (TVL) of $59.4 Billion, Ethereum has the largest market share across all blockchains today. Collectively the TVL of all chains is worth $91.4 Billion, representing a 0.9% movement in the last 24 hours.

Total Value Locked (TVL) is a pivotal metric used to understand liquidity, representing the aggregate value of all assets deposited in various protocols.

No, bitcoin is not considered a stablecoin. A stablecoin is a type of cryptocurrency that is designed to maintain its value by pegging its price to a stable asset like a fiat currency (eg US dollar) or a commodity (eg gold).

The market cap for stablecoins has grown considerably in the past six months, increasing from $122 billion in October 2023 to $157 billion in April 2024.

A central bank digital currency (CBDC) is a form of digital currency issued by a country's central bank. It is similar to cryptocurrencies, except that its value is fixed by the central bank and is equivalent to the country's fiat currency.

What will happen if USDT crashes? ›

If the company that issues Tether (USDT) collapses, the value of USDT will likely plummet, as we saw in May 2022 when TerraUSD (UST) collapsed and Tether briefly fell to $0.96 ¹. The value of USDT is pegged to the U.S. dollar and backed by Tether's dollar reserves ².

USDC brands itself to be the world's safest stablecoin. According to its issuer, Circle, each USDC token is backed 100% by highly liquid cash and cash-equivalent assets.

TVL is a key metric indicating the health and popularity of DeFi platforms, assets, and the market as a whole. The higher it is, the more the audience trusts the platform, asset, or the whole DeFi niche – and the larger returns you can expect.

Technical Vocational Livelihood (TVL) is a track or program offered in Grade 12 that focuses on providing students with practical skills and knowledge related to specific vocational fields, preparing them for employment opportunities.

Technical-Vocational-Livelihood Strand

It provides a curriculum that is a combination of Core Courses and specialized hands-on courses that meets the competency-based assessment of TESDA. At the end of the course, students will be able to take the TESDA National Certification Assessments.

The TVL term means the total value in $US Dollar of all assets deposited into the project's smart contracts. TVL is commonly calculated in US dollars but could be converted to other currency.