Exploring the crypto market, you probably notice different definitions and metrics that might be confusing at first sight. So, take a moment to sort out the details. Robi is at your disposal and ready to explain crucial crypto topics.
Let’s discuss the key metrics for DEX platforms with similar abbreviations but different meanings. TV & TVL will accompany you through the whole crypto journey. So, hurry to make it clear!
Trading Volume (TV) — is the total number of shares between buyers and sellers exchanged during a particular period of time.
Total Value Locked (TVL) — is defined as the total value of cryptocurrency (number of assets) locked in a smart contract.
Both of these metrics are important for the DEX ecosystem and play a crucial role in its development. TVL and TV indicate the competitiveness and usability of DeFi applications or the coin on the market. Thus, they directly impact the traders’ and investors’ inflow. Let’s keep going and dive into details!
Trading Volume Explanation
The trading volume is an amount of trading activity on an asset during a specific time. We can measure this indicator to evaluate the coin or DeFi App.
Trading Volume for Coin
TV — is a record of the buy and sell actions of the coin, such as BSW or BNB, for a certain duration. Consequently, TV impacts the coin price due to the basic market principle: Demand⬆ Price ⬆ or Demand⬇ Price ⬇. It means that Trading Volume should directly correlate with the price of the token and crypto market tendency as well.
But we should consider that the correlation mentioned before is perfect conditions, and reverse moves of Trading Volume and price are possible and will cause a market imbalance. View the table to see the theoretical example:
Trading Volume for DEX
Total Trading Volume represents the popularity and usability of the platform and, as a result, creates a trusting impression for new users and investors. Active trading on the platform results in a higher Total Trading Volume.
When it comes to Biswap, you can see a Total Trading Volume on the platform on the Home page. This indicator represents all trading volume that has been made since the launch of Biswap.
Biswap creates favorable conditions for its users to maintain a strong reputation among TOP DEXs and attract more and more traders! As a user, you can experience the lowest trading fee on the BNB Chain, a variety of whitelisted tokens and extra profit from trading via the Multi-reward Pool! Such beneficial conditions cause a High Total Trading Volume on Biswap and prove the quality and profitable exchange on the platform.
- The higher TV — the more valuable coin is
- The higher the Trading Volume is on the platform — the more attractive it is for traders and investors
Are you still here? I enjoy teaching you something new.😉
Total Value Locked Explanation
Total Value Locked (TVL) is the number of assets that users have deposited in a protocol, for example, in the DEX. This metric is vital for a DeFi App that requires capital for functionality. Locked funds could be vested in the project for several functions, such as staking, liquidity pools, or lending.
It means that TVL indicates the potential and viability of the project. When the TVL of a DeFi platform rises, it causes an increase in liquidity and popularity among users and investors. Liquidity growth allows asset conversion without causing a sharp change in the asset’s price. That is why these factors directly contribute to DEX’s success.
Let’s overview the general principle of the TVL impact:
- The higher TVL is — the more capital is locked in DEX, and the more benefits and lucrative offers for users are provided.
- The lower TVL is — the fewer opportunities for DEX improvement and the decrease of lucrative offers for users.
You can track the Biswap Total Value Locked on biswap.org!
Biswap is an attractive platform for users and investors; we offer the best conditions and lucrative earning options. In this way, we engage a new inflow of locked funds that, in turn, boosts our Total Value Locked.
Benefits for Contribution to Biswap Total Value Locked!
To contribute to Biswap Total Value Locked, you have to provide liquidity. In other words — to lock your assets in the Liquidity Pool. Biswap values its liquidity providers and awards them with exclusive benefits such as:
- Earn 75% from the Trading Fee
- Opportunity to earn BSW via Farms with High APYs
TVL and TV indicators will navigate you through the crypto market! These indicators represent the platform’s competitiveness in general and how favorable the user environment is. I encourage you to do your own research and pay attention to crucial metrics such as TVL and TV.
📍All figures are relevant at the time of the release of the material: 22/08/22
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