The value doesn’t represent the number of outstanding loans but the total underlying amount supply secured by a given app or Defi platform.
TVL estimates tokens total value locked within the dapps, meaning that the higher the locked-up value in a Defi, the better.
It’s vital when comparing different Defi protocol’s market share. Significantly, it can be essential for investors seeking undervalued Defi platforms to invest.
The market Cap lets you know how huge crypto is and helps you to create investment decisions. Generally, both market Cap and TVL are valuable tools for identifying the coin you can invest in.
This article, however, will look at the top 10 coins by market cap/ TVL ratio.
Top 10 coins by Market Cap/TVL ratio
1. Bunny (BUNNY)
TVL: $707.13m Mcap/TVL: 0.00591
In terms of TVL, PancakeBunny is one of the biggest yield aggregators in Binace Smart Chain and Ethereum.
From private individuals, PancakeBunny farmers get permission for reinvestment and automatic summation of yield on their behalf via mono-contracts. Bunny has a TVL of $749.13m and a Mcap/TVL of 0.00488.
Customers could farm by themselves; however, it involves a complex procedure of knowing the ideal frequency and period to increase or reinvest profitability. Thus, users or customers can delegate the process with PancakeBunny.
It’s vital to add that the actual farming happens at Venus and PancakeSwap.
This platform aims to support DeFi by offering users a simple means to increase their profitability automatically on BSC. It even plans to lower the DeFi entry barrier.
2. SharedStake (SGT)
TVL: $51,632,585 Mcap/TVL: 0.0099
SharedStake is a decentralized open-source protocol that permits users to stake Ether to Ethereum-2 and keep the staked amount liquid and valuable. SharedStake has a TVL of $52,632,585 and the Mcap/TVL of 0.00035.
SharedStake Governance Token (SGT) has 50 percent of the total supply assigned to the users. The emission spreads for over two years until its likely Eth2 deployment time.
This protocol mainly aims to enhance customer experience, reliability, and essentially the Eth2 staking process profitability via a decentralized way. The improvement in the future will allow for more profitable solutions or scalable ones.
3. InstaDApp (INST)
TVL: $11.41b Mcap/TVL: 0.01173
InstaDapp wants to drive interoperability among protocols for ease of development and power users. It allows all stripes developers to begin leveraging DeFi full potential.
Developers and users can build and manage their DeFi portfolio on InstaDapp.
The native token began trading formally in June 2021 and it currently has a TVL of $12.1 billion and the Mcap/TVL of 0.01218. In addition, INST, the native token, has lost about 10 percent since its trading inception.
This protocol’s key functionalities are upgradability and account extensions. The upgradability shows that the new and upcoming extensions would be upgraded and maintained by the INST governance.
4. Bearn (BFI)
TVL: $11,835,364 Mcap/TVL: 0.01795
Bearn (BFI) is one of the top coins by Market Cap/ TVL Ratio. It’s a crypto that started in 2021 and works on the BSC platform.
Its last price is about $43.97527528, and it presently trades on two active markets with $27,171.55 traded for the past 24 hours.
Bearn presently has a TVL of $14,835,364 and a Mcap/TVL of about 0.01431.
5. Convex Finance (CVX)
TVL: $6.8b Mcap/TVL: 0.01984
Convex simplifies the curve boosting to maximize yields. It permits some Curve liquidity providers to make trading fees while claiming boosted CRV with no locking of CRV.
Liquidity providers could receive liquidity mining rewards and boosted CRV with small effort.
Convex Finance has a TVL of $6.4b and Mcap/TVL of 0.02212. And it allows users to receive trading fees and some boosted CRV got by liquidity providers. Thus, it permits for a better balance and capital efficiency between CRV stakers and liquidity providers.
More so, Curve liquidity providers could deposit some LP tokens into the Convex to maximize CRV earnings using a more effective boost. Curve DAO token stakers can earn CRV tokens and extra boosted CVX tokens via the protocol.
6. Liquity (LQTY)
TVL: $2.23b Mcap/TVL: 0.02177
Liquity is a DeFi protocol facilitating free interest collateralized borrowing. Customers could borrow LUSD stablecoins by locking ETH with about 110 percent least collateral ratio.
With it, the user or customer pays a borrowing fee just once. In other words, Liquity is a free protocol that utilizes a creative batching and quick liquidation model that has witnessed high popularity.
It’s interesting to add that the TVL in Liquity Protocol went from 0 percent to $1 billion in ten days. Presently, Liquity TVL is $2.33b and the Mcap/TVL is 0.02273.
7. Wault (WEX)
TVL: $266.25m Mcap/TVL: 0.02979
Wault.Finance is an open DeFi project launched in early 2021. Wault aims to make DeFi usable, simple, and profitable.
The project is committed to its customers and ensures that its products are easy to use and efficient in generating yields for users.
Wault Finance future governance will move to decentralization, and it plans to put decision-making power into its token holder’s hands.
More so, with its open-sourced code, developers are welcome to join in the project’s development.
Wault is launched in two blockchains using some products plus three tokens; thus, it’s one of the main active homegrown projects from BSC in 2021. Currently, Wault has a TVL of $348.25m and Mcap/TVL of 0.03048.
8. StakeWise (SWISE)
TVL: $114.75m Mcap/TVL: 0.03630
StakeWise is the ETH 2.0 staking solution that wants to get the highest likely yield for its users.
The platform runs a stable and secure banking-grade infrastructure by paving way for yield farming and compound staking using unique tokenomics, and also by charging small fees.
It allows any user with at least 0.001 Ethereum to participate.
StakeWise has about $110.75m TVL and Mcap/TVL of 0.03449.
9. Tranchess (CHESS)
TVL: $1.24b Mcap/TVL: 0.03636
Tranchess, launched in June 2021, is a derivative trading and asset management protocol. It offers a different risk or return matrix from a single major fund that tracks a given underlying asset.
The term Tranchess was influenced by the French word “Tranche” and chess game. It currently has a TVL of $631.5m and a Mcap/TVL of 0.03887.
As stated, the major fund or the token Queen tracks a given underlying asset that can be divided into two sub-funds equally. Tranches have purposefully selected Bitcoins as their first cryptocurrency asset for tracking.
It’s important to add that the protocol shares several DeFi features like borrowing and lending, single-asset yield farming, and trading.
10. Lido (LDO)
TVL: $5.72b Mcap/TVL: 0.04102
Lido is a liquid staking platform for ETH that permits users to stake their Ethereum without minimum deposit while participating in some on-chain activities like lending to the compound return.
Lido can be utilized to manage fee parameters or distributions, govern the addition and removal of lido node operators, and permit governance rights across the Lido DAO.
Presently, Lido is traded at $0.98 with a TVL of $4.98 billion and a Mcap/TVL of 0.03436.
Conclusion
TVL is vital when comparing different Defi protocol’s market share. And it can be essential for investors seeking undervalued Defi platforms to invest. The market cap lets you know how huge crypto is and helps you to create investment decisions.
Both market Cap and TVL are valuable tools for identifying the coin you can invest in. The article has carefully selected the top 10 coins by market cap/ TVL ratio as of August 2021. You can as well check our previous article with market cap/TVL ratio from March 2021.
The TVL and market cap are valuable for any digital investor because they can be used to estimate if a token will be a profitable investment or not later in the future.
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Written by: Narender Charan
