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Mcap-to-TVL Ratio: A Practical Guide

A clear, data-driven guide to mcap-to-tvl ratio.

The ratio

Mcap/TVL divides a protocol's market capitalization by assets deposited. Below 1 means the market values the protocol at less than deposits, which some read as undervaluation.

Why TVL is imperfect

TVL can be inflated by recursive lending, liquidity incentives and double counting of LSTs. DefiLlama offers toggles to exclude borrowed and staked assets.

Category differences

Liquid staking protocols like Lido have huge TVL and low ratios near 0.05, while derivatives exchanges have small TVL relative to volume and high ratios. Compare within categories.

Using FDV

Swap market cap for FDV to account for future supply; Pendle's mcap/TVL in 2024 differed noticeably between the two measures.

Combine with revenue

A protocol with low mcap/TVL and low revenue may simply be capital-intensive without monetizing; pair the ratio with fees per dollar of TVL.

By the numbers

For Mcap-to-TVL Ratio, the reference figures are topic of Mcap-to-TVL Ratio, level of Intermediate, updated of 2026. The comparison table below lines up category, typical mcap/tvl — Liquid staking: 0.05–0.2; Lending: 0.1–0.5; DEX: 0.5–3; Perp DEX: 1–10.

Modeling Mcap-to-TVL Ratio with the MCAP To TVL Ratio Calculator

The MCAP To TVL Ratio Calculator takes three inputs — Market cap ($M), TVL ($M), Price ($). MC/TVL = market cap ÷ total value locked. With its default inputs (Market cap ($M) = 800; TVL ($M) = 1000; Price ($) = 4) it returns 0.8 x; swap in the figures from Mcap-to-TVL Ratio above to reproduce the scenario yourself.

Modeling Mcap-to-TVL Ratio with the Protocol Revenue PE PS Calculator

The Protocol Revenue PE PS Calculator takes three inputs — Market cap ($M), Annual revenue ($M), Holder earnings share (%). P/E = market cap ÷ (revenue × holder share). With its default inputs (Market cap ($M) = 2000; Annual revenue ($M) = 200; Holder earnings share (%) = 30) it returns 33.33 x; swap in the figures from Mcap-to-TVL Ratio above to reproduce the scenario yourself.

Data Table

For educational and informational purposes only. Not financial, investment, tax or legal advice. Figures are approximate and historical; crypto assets are volatile and you may lose capital. Do your own research.