@dfheju5th

TVL-token price divergence doesn’t always mean undervaluation—fake TVL or unsustainable TVL growth could be the cause. To distinguish: 1) Check TVL composition—if growth comes from low-value, high-volume transactions (e.g., wash trading) or incentivized liquidity (e.g., high APYs), it’s likely “watered.” 2) Analyze token utility—if TVL grows but the token has no revenue share or governance power, price won’t follow. 3) Compare to peers—if similar projects have 3-5x price gains for 5x TVL growth, this project may be undervalued. If TVL growth relies on short-term incentives (e.g., bonus tokens), the price will stay flat until organic demand emerges. Investors should prioritize projects with TVL tied to real usage, not just incentives.

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