The study shows that the total closed value (TVL) is a weak scale for building coding portfolios and making investment decisions
Singapore, June 10, 2025 / PRNEWSWIRE / – A new study from Al -Khwarizmia Foundation Tokenomics challenges one of the most martyred standards in the encrypted currency sector: the total closed value. The report provides some of the strongest evidence so far that TVL, although it is prominent through information panels, major addresses and investor materials, has no effect on the financial performance of the distinctive symbol.
A recent analysis of more than 300 encrypted currencies (with the exception of Bitcoin and Nutta) from 2023-2024, led by Dr. Matthew Brigida, Associate Professor of Finance at the New York State University Institute for Applied Arts and Senior Economists at the Khwarzaf Foundation, is evidence that TVL is attributed to distinguished performance.
The research team built a weekly portfolio classified by symbols by TVL, which carries the highest 25 % and a shortcut of 25 %, to test whether the TVL has a high -resolution generation alpha. They did not.
“TVL is often used to show credibility or potential upward trend, but our results show that they fail as an investment signal,” said Brigida. “Even after setting well -known problems such as double governor, TVL’s governor has not provided abnormal returns.”
TVL is still common in encrypted media addresses, but it can mislead investors and analysts, according to a study. Pits such as Messenger, Artemis and Taken Terminal are now a secondary scale, while BlockWorks Rev has provided (the real economic value). Community analysis tools such as Dune and L2BEAT are either decentralized TVL interpretation or using measures such as the guaranteed total value (TVS). Nansen adds the context to TVL through the behavior of the wallet and smart money flows, while Flipside Crypto confirms the value of high -quality users via TVL.
Since Crypto is deeper with global financing, the Khwarizmia Foundation encourages platforms, researchers, investors and the media to adopt measures that reflect actual use and economic demand. This research supports the role of al -Khawsaf in developing the encryption market by combining academic rigor with the real -time Blockchain visions of data -based innovation in WeB3.
Read the full press statement here.
The whole white paper is available here.
About the Khwarizmia Foundation
Alien The task is to operate a world where information can be integrity and innovative ideas can expand. The Khawarzaf Foundation supports the Rapid Ecological System in Al -Khwarzaf by providing a better developed environment in its class, supporting the main infrastructure and defining technical standards, providing comprehensive support to builders and businessmen, and providing decentralized governance framework. To find out more, please visit Alien.
