Why is TVL important in crypto?
– Structural reasons to look at before token prices
TVL stands for Total Value Locked, which means the total amount of assets "deposited in a blockchain network or DeFi (Decentralized Finance) protocol."
If you want to study crypto and analyze it in more depth, you need to look at the actual usability, which is just as important as the changes in token prices in on-chain activities.
TVL is an indicator of liquidity and trust that shows how much money is 'locked' within that ecosystem. While token prices fluctuate based on speculative sentiment, TVL represents the total amount of actual money that has come in and is locked for a certain period, making it a more important metric when considering real investment potential.
In other words, prices can be bubbles, but TVL indicates that the actual incoming money has not exited. For example, at the end of 2023, the price of $PYTH surged in the short term, but at that time, TVL was actually stagnant with no significant fluctuations.
→ In reality, the price quickly returned to its original position afterward.
Conversely, projects like $JTO, $TAO, and $ENA saw a sharp increase in TVL just before or right after their token listings, and subsequently, the prices reflected this increase.
In other words, capital inflow → TVL increase → price rise
This is why it is considered an important factor when making investments or attempting swings, rather than speculation.
To summarize why TVL is important:
1. Money is coming into the ecosystem and is not exiting, holding steady.
2. This signals structural trust + actual use cases.
3. Prices can be distorted by pumping, but TVL is more user-based.
In summary, prices often serve as lagging indicators, while TVL can act as a leading signal for institutions or alpha investors.
How about practicing finding coins where TVL is maintained while prices are suppressed?
<The steadily growing RWA market, BlackRock in RWA and their influence, is the BlackRock BUIDL fund undervalued?>
As of July 3, 2025, the total TVL in DeFi is around $150 billion, recovering about 83% of the 2021 peak ($180 billion). This recovery is not just a simple rebound of the existing sector; the key point is the qualitative change in the influx of structural capital.
The recovery of stablecoin market cap, the emergence of real-world income-generating assets, and the acceleration of the flow from TradFi to on-chain liquidity.
And the most important sector we will discuss today is RWA.
RWA: Real World Assets is the fastest-growing sector in DeFi from 2024 to 2025.
January 2024: $4.5B -> June 2025: $12.3B
Approximately threefold growth over two years, with an annual growth rate of +85%...
Although its share in the overall DeFi is still less than 8%, it is rapidly expanding based on institutional participation.
The key driving force behind RWA growth is the overwhelming presence of BlackRock. At the center of this RWA growth is the giant asset management firm BlackRock, which holds a significant share.
BlackRock's BlackRock BUIDL fund occupies an overwhelming first place in RWA TVL, demonstrating their tremendous influence as shown in the table. As indicated in the table, out of a total RWA TVL of $12.8 billion, BlackRock BUIDL accounts for $2.84 billion, and BlackRock's participation significantly boosts institutional investors' confidence in the RWA market.
<Duli thinks this>
Is RWA undervalued or overvalued?
Naturally, based on market capitalization, it is an extremely undervalued sector.
- Based on market capitalization: $12.3B RWA TVL is
▸ 0.009% of the global bond market ($133T)
▸ 0.003% of global financial assets ($400T)→
This can be interpreted as an extremely low market penetration rate.
From the perspective of institutions, I believe they will see this as a market with sufficient merit to diversify capital inflow routes with much lower costs and regulations.
Although liquidity seems to be drying up now, DeFi is gradually evolving and growing.
If BlackRock can prove that this market is a good place to gather money through sufficient profitability (as Tether has done), I believe other institutions will have no reason not to follow suit.
RWA and stablecoins.
I think these two will continue to be long-lasting growth sectors in the future.
They are inseparable structures... it's like Chuberlip itself...
$usdt $usdc $rwa @OndoFinance
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