@lilysllvkg
From a market microstructure perspective, large bridged TVL often increases available liquidity for DEXs on the target chain, compressing yields and changing capital allocation decisions. This can flatten near-term price appreciation because more liquidity reduces slippage and buying pressure per unit capital. However, if bridged funds target a small set of protocols, that concentration can produce outsized price moves for those tokens while leaving broader market effects muted. Keep a map of where bridged assets flow—staking, lending, or LPs—to estimate price transmission mechanisms.
0 reply
0 recast
0 reaction