Has anyone been looking at the divergence between overall crypto market cap growth and the TVL in major DeFi protocols? It feels like the growth in market cap is outstripping the actual capital locked in productive DeFi applications, especially outside of blue-chip chains. Are we seeing more speculative capital on the fringes, or is this just a lag in reporting/integration?
Could it also be that many new projects are simply not mature enough to have significant TVL, but their potential is being priced in? Or perhaps the 'market cap' includes a lot of illiquid tokens that aren't truly representing capital flows.
That's a sharp observation. I've been noticing something similar, especially with newer tokens getting disproportionate market caps compared to their actual utility or TVL. It does feel like more speculative money chasing narratives.
I think it's a bit of both. We've seen cycles where market cap gets ahead of fundamentals. But also, some DeFi innovations might not require massive TVL to generate value, so the metric itself might need re-evaluation for newer protocols.