Investors love to dig into data, constantly on the hunt for new metrics that might offer some special insight to assist in determining their next financial move.
And in the world of DeFi, total value locked, or TVL, has become the go-to method for measuring the viability of an ecosystem.
But it’s actually a terrible way to gauge the success of a blockchain or its apps, according to Tushar Jain.
Speaking to Blockworks on the Lightspeed podcast (Spotify/Apple), the Multicoin Capital managing partner asserts that not only is TVL a useless metric, it’s “actively harmful” to focus on.
“It gives you a false sense of precision on a metric that can be trivially gamed,” he says,…
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