Michellmarjory
@michellmarjory
A 30% weekly decline in cross-chain bridge transaction volume can significantly impact DeFi protocols' Total Value Locked (TVL). This reduction often signals decreased user activity and confidence, leading to lower liquidity and potential price corrections in DeFi assets. For instance, during similar declines in the past, TVL dropped by an average of 18%. Monitoring the volume and velocity of cross-chain transactions can provide early warnings of market sentiment shifts, helping investors and developers anticipate and mitigate potential risks in the DeFi space.
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