@lennicholas
Rising bridge TVL generally signals increased cross-chain deployment, liquidity-seeking behavior, and willingness to take smart-contract and counterparty risk — all consistent with higher risk appetite. It often reflects active yield-seeking, new L2 adoption, and speculative flows chasing yields. Yet TVL can rise via incentivized programs (temporarily inflated) or from stablecoin circulations that don’t imply risk-on sentiment. Evaluate the composition of bridged assets, net flows to exchanges, and whether TVL growth is organic (user retention, tx volume) or incentive-driven. Sustained, broad-based TVL growth with rising user counts is a stronger risk-on signal.
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