Name: Cryptography complexity and effect on price variability and TML (total blocked value)

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The cryptocurrency world has become increasingly popular in recent years, and many investors are gathering to explore their growth potential. One of the often -unnoticed aspects is the variability of price, which can have a major influence on the value of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and others. In this article, we will take into account the complexity of cryptocurrencies, especially when focusing on TML (total blocked value) and order book dynamics to understand how these factors affect prices.

What is the total blocked value (TVL)?

The total blocked value (TVL) refers to the total value value that has been blocked in the decentralized cryptocurrency (Defi) financial protocol (Defi), such as the Stablelelecoin or Defi loan platform. When consumers pay funds for these protocols, they usually close their property and cannot withdraw them until the blocking period ends. TVL is an important means of understanding the liquidity of the market.

How to order effect price variability?

The order book plays a key role in the formation of price dynamics in cryptocurrency markets. The order book is a data structure depicting offers and offers of all pages ready to purchase or sell a specific source at a certain price level. When there are many orders, it is caused by supply and demand imbalances, which can lead to significant price fluctuations.

The prices of healthy book books in the market are usually relatively stable as buyers and sellers negotiate transactions. However, when the order book is unbalanced or the participants become particularly self -confident or bears for specific assets, prices may decrease or increase rapidly. This is often referred to as “squeezing books”.

Example: Last Bitcoin market slowing

2022 In July The price of Bitcoin (BTC) decreased dramatically and a few days averaged by more than 20% per day. At the Bitcoin summit, he traded around $ 48,000, but until 31 July. It decreased to about $ 35,000.

One of the main factors contributing to this slowdown was the imbalance of the book on Ethereum (ETH). The price of ETH has made a major impact on supply and demand dynamics on Ethereum network. 2022 September 15 A major event has been canceled, resulting in a change in the influx of ETH and has led to a significant reduction in assets.

TVL influence on market variability

The total blocked value (TVL) can have a major impact on market volatility in several ways:

• Increased sensitivity to prices : When TVL is high, markets become more sensitive to supply and demand dynamics. This can lead to rapid price fluctuations when traders apply their positions accordingly.

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• Closed Book Distribution : Lack of equilibrium in the order book can distort the price dynamics and cause unexpected price changes.

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A complex mutual game between cryptocurrency prices, TML and book -booking books create a charming and dynamic market environment. While maintaining stable prices, a book about healthy orders with low TML, an unbalanced order book or high TML due to specific resources can lead to significant price variability.

Investors must be informed of market dynamics, including TVL changes and order book activities, to move with these complexities. Understanding how these factors affect themselves, traders and investors can better predict a possible price change and make more conscious decisions.

Links

• Cointelegraraphe Order Book “

• As the total value (TVL) “through Cryptoslat

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