Market Cap or FDV/TVL is a meme metric that really only considers things from a surface level and should never be the only metric which you use to approach an investment in DeFi.

Sure high TVLs are great as a vanity metric but how it correlates to the project's potential growth/longevity is what should matter;

Ask instead:
What's the TVL used for?
What % is put to work?
How can it be sticky?
How can it 10x?

Where is the value captured and retained?

Some other metrics to look at instead of just huffing the memes:

Lending: Utilization rates, Net % borrowed, Loans originated

DEXs: Volumes/TVL, Fees generated, Trade Size/User

Yield Aggregators: TVL stickiness, Revenues & Cashflows, Strategies and Growth Opps

If a bank has billions $ in deposits just sitting around someone would be fired

You'd ideally want every single $ out there earning you interest spreads & originating loans

W/ $ALPHA V2 launch, $CREAM V2 utilization rates have popped paying 30-40% to lenders.

Similarly if you have a mall that nobody comes in to shop, something is probably wrong

DEXs liquidity should be tapped frequently w traders coming back for more

How does it capture mindshare and encourage vendors to open up shop? (LP)

$SUSHI Onsen encourages long tail degens

Peep the $YFI V1 analysis we did months ago for a fundamental approach to valuing yield aggregators; PE/PS ratios and DCF models

Still applicable here w $Badger, $FARM, etc.

How sticky is TVL?
How do the fees kickback to token/devs?
How can TVL 10x? https://www.mechanism.capital/yfi-frameworks-for-fundamental-valuation/