In the world of cryptocurrency, TVL (Total Value Locked) is a common term that represents the total value of assets locked in DeFi protocols (decentralized finance). TVL is not only an important indicator to assess the reliability and strength of a blockchain project but also plays a significant role in determining the growth potential of related coins. Notably, coins with a small circulating supply often hold strong price increase opportunities. Let's explore why.
Why is TVL Important?
Reflecting the Appeal of the Protocol:
TVL indicates the amount of assets that users are willing to lock in the protocol. The higher this value, the more reliable and attractive the protocol is to users.Demonstrating Profitability Potential:
Protocols with high TVL often come with attractive staking, yield farming, or lending programs. This encourages users to hold assets in the protocol longer.Increased Liquidity:
When TVL is high, liquidity in the ecosystem is also improved, facilitating transactions and minimizing slippage risk.Support for Coin Price Increase:
High TVL often means a large amount of related tokens are locked, reducing the circulating supply in the market. This facilitates the growth of token value.
Potential of Coins with Low Circulating Supply
Coins with a small circulating supply are often associated with new or developing projects. They have great potential, especially when TVL grows over time:
Limited Supply:
With a small circulating supply, any increase in demand can lead to strong price volatility, creating significant opportunities for investors.Early Investment Opportunities:
These coins often have low value in the early stages, creating significant opportunities for investors to get in early and enjoy profits as the value increases.Linked to TVL:
When TVL increases, it proves that the project is gaining trust from users. This usually leads to the growth of the related token's price.
List of Coins with Low Circulating Supply
Below is a list of 10 representative coins with a small circulating supply but great potential, arranged by market capitalization:
Conclusion
TVL is an important metric that helps measure the success of blockchain projects and reflects the growth potential of the related coin. Coins with a small circulating supply, especially when linked to high TVL, are often attractive investment opportunities for long-term investors. Don't forget to monitor market data to make informed investment decisions!
