AAVE: Price to TVL Ratio
Shown as its 2019–2022 sample; the latest readings and full history are included with Plus.
AAVE's market cap divided by the value locked in Aave on Ethereum.
Why use it. Price to TVL compares what the market pays for the token with the capital the protocol holds; a low ratio means a lot of capital for each dollar of token value. How to read it. Lower means more capital locked for each dollar of market cap. The ratio falls when deposits grow or the token's price drops.
Calculation. Price to TVL = market cap / value locked, each day at that day's closing market cap (price x supply, from CryptoKeyhole's market data and coin supply figures). Value locked: Aave v2 and v3 (supplied less borrowed) on Ethereum only, so the ratio is higher than with the protocol's other networks. Covered protocols, Ethereum mainnet only. Lending (Aave v2 and v3, Spark, Compound v3, Morpho Blue): what is supplied less what is borrowed, the deposits the protocol still holds, from the lending charts (Lending: Supplied by Protocol and Borrowed by Protocol). Sky's vaults: the collateral locked; their DAI and USDS debt is minted, not taken from depositors, so it is not subtracted. Liquid staking (Lido, Rocket Pool, StakeWise) and EigenLayer's native restaking (EigenPods): each one's estimated active stake, from the staking charts, valued at CryptoKeyhole's ETH/USD close of the day. Counted once: the liquid staking tokens deposited in those lending markets and vaults, less those borrowed, are taken out, because their ether is already counted in staking; that group includes tokens of issuers not covered here (such as Coinbase's cbETH), so the counted-once figure errs slightly low. Not counted yet: decentralised exchanges' pools, Curve, Pendle, yield vaults, bridges, tokens deposited in EigenLayer's strategies, and the older Aave v1 and Compound v2, so the total is lower than all of DeFi on Ethereum, by more in 2021 and 2022 when those were large. Daily from 1 December 2020, from CryptoKeyhole's own Ethereum node; the latest day is a partial until it closes.