How Can a Low TVL Protocol Still Have a High Intrinsic Value?

A protocol can have a low TVL but a high intrinsic value if its tokenomics are highly effective at capturing revenue from a low volume of locked assets, or if it provides a non-monetary utility that is highly valuable. For example, a Layer 2 scaling solution may have a low TVL but a high intrinsic value due to its ability to capture significant transaction fees or its essential role in the overall ecosystem's security and throughput.

The key is high revenue capture and utility per locked dollar.