What is “Market cap / TVL”?
Market capitalization / Total value locked is a financial multiple that can be used for valuation of cryptocurrency and its prospects, usually in DeFi space. It compares the market capitalization of a crypto project to the value deposited into its protocols (smart contracts).
What is the possible range for this multiple?
A value close to 0 may indicate that a project is very undervalued and worth looking into as a possible investment.If the value for the project is above 1.0 then this can indicate overvaluation. In the long term, however, it might still be a good investment.
