Psst.
There is this one weird trick to spot #DeFi gems not many people know about yet
1/ Let's talk about Mcap/TVL Ratio!
There is this one weird trick to spot #DeFi gems not many people know about yet
1/ Let's talk about Mcap/TVL Ratio!
2/ In short, this metric shows the ratio of market capitalization over the total value locked in an asset.
The rule of thumb is that the lesser the ratio, the more room to grow the token has.
The rule of thumb is that the lesser the ratio, the more room to grow the token has.
3/ Where to find that Mcap/TVL metric? Easy! Head over to any @coingecko defi project like @AaveAave and take a look here;
In Aave's example, the ratio is close to 1.00 as its Mcap and TVL are pretty similar.
In Aave's example, the ratio is close to 1.00 as its Mcap and TVL are pretty similar.
4/ Now, the product engineer @jlwhoo7 at @coingecko did the job of scraping the list of projects with Mcap/TVL ratio for you by creating this magical website:
alpha.whatisonchain.com/tvl
alpha.whatisonchain.com/tvl
5/ Let's examine some of the best candidates with the most room to grow 👇👇
publish0x.com/bitguy/how-to-…
publish0x.com/bitguy/how-to-…
6/ @BadgerDAO holds $2.3B while the $BADGER mcap is worth a mere $200M. Sweet ratio of 0.09
7/ @CurveFinance Damn, $4B TVL at $700M Mcap. Ratio of just 0.17
8/ @Barn_Bridge nears $500M at $85M Mcap. That's hell of a low 0.17 ratio
9/ @harvest_finance above $800M while its Mcap sits at $145M with a superb low ratio of 0.18
Aside from the pure MCap/TVL ratio, which of these 4 has the most room to grow? $BADGER, $CRV, $BOND or $FARM?
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