Total value locked is one of the most important metrics in analyzing DeFi projects, including decentralized exchanges or DEXs. In recent years, investor interest in DeFi has been quite robust. So, why does TVL actually matter?

• Total Value locked indicates investor confidence in a given project

• This metric also shows the liquidity within a DEXs

• TVL can help gauge the real value of DEX tokens.

Well, based on these factors, we decided to come up with a list of DEXs based on TVL. Now, we are not ranking tokens with the highest TVL here. We simply look at the correlation between TVL and price to see which of these tokens are undervalued. Here is the list:

Trader Joe (JOE)

Trader Joe (JOE) is one of the main DEXs on the Avalanche network. It is designed to offer cross-chain interoperability as well. According to data from Token Terminal, Trader Joe has a TVL of around 120 million.

Data Source: Tradingview

The coin on the other hand is trading at $0.8423 right now. This means that the price in relation to the TVL remains relatively low.  It suggests that Trader Joe has a lot of potentials to grow further, especially when you consider that it’s fairly new.

dYdX (DYDX)

dYdX (DYDX) is another undervalued DEXs that should be on your radar. Data from Token Terminal shows that the DEX has around $987 million in total value locked. At press time, the native DYDX token was trading at about $4.65.

Based on this, the price to TVL correlation also shows an undervalued DEX token. While this is not a guarantee that DYDX will surge in the future, it shows you the hidden potential if TVL rises.

Other DEX coins to watch in this regard include Anyswap, Serum, and even Sushiswap. But just as a reminder, TVL is just one of many metrics used to gauge the potential of an asset.