A study conducted by the Algorand Foundation has called into question the relevance of the Total Value Locked (TVL) metric in the cryptocurrency landscape. The findings suggest that TVL does not significantly influence token financial performance.
Research Overview
In June 2025, the Algorand Foundation published a new study examining the use of TVL in crypto investment contexts, led by Dr. Matthew Brigida, Associate Professor of Finance at SUNY Polytechnic Institute.
Analysis Results
The analysis involved over 300 cryptocurrencies, excluding Bitcoin and stablecoins, revealing that TVL does not predict token success in the market. The authors found that TVL-based portfolios did not yield significant returns.
Investor Recommendations
The study urges analysts and investors to reconsider the application of TVL in the market. Teams analyzing crypto metrics are beginning to use alternative indicators that account for actual token usage.
The Algorand Foundation research emphasizes the need for a shift towards more accurate metrics that better reflect actual usage and economic demand in the crypto industry.
