How Can the MC/TVL Ratio Be Adapted for non-DeFi Protocols? ▴ Learn

How Can the MC/TVL Ratio Be Adapted for non-DeFi Protocols?

For non-DeFi protocols, the TVL metric is often replaced by a comparable measure of "locked value" or economic activity, such as Total Value Secured (TVS) for a Layer 1 blockchain or the total value of assets bridged/wrapped for an interoperability protocol. The ratio then becomes Market Cap to Total Value Secured (MC/TVS) or a similar proxy.

The goal remains the same: to compare the token's market valuation to the total economic activity it secures or facilitates.

Why Do Market Makers Often Cancel and Replace Their Orders in a Dynamic Order Book?

How Does the Token’s Emission Schedule Distort the MC/TVL Ratio?

What Is the Difference between TVL and Circulating Market Capitalization?

How Does a Protocol’s Total Value Locked (TVL) Relate to Its Projected Cash Flows?