In the fast-paced world of crypto, metrics like Total Value Locked (TVL) often get thrown around as a quick way to gauge a blockchain's health. But according to Lily Liu, President of the Solana Foundation, TVL might not be as telling as we think. In a recent clip shared by the official Solana account on X (view the post), Liu breaks it down simply: TVL shows the amount of assets locked in protocols, but it doesn't reveal how actively those assets are being used or the real value they're creating.

Think about it like this—TVL is like checking the balance in a savings account. Sure, a big number looks impressive, but if that money just sits there untouched, it's not generating much activity or fees. Liu uses an example: imagine $100 million in TVL that's only interacted with once a year. That might create fees on entry and exit, but compare it to the same amount being traded or used twice a minute. The latter drives way more transactions, fees, and overall ecosystem vibrancy. Yet, TVL treats both scenarios the same. That's why she argues for focusing more on revenue—actual fees generated—as a better indicator of a chain's strength.

This perspective hits home especially for Solana, which has become a hotspot for meme tokens. Platforms like Pump.fun (explore Pump.fun) have exploded, allowing anyone to launch meme coins quickly and cheaply, leading to massive trading volumes. But in the meme world, where hype can inflate TVL temporarily through locked liquidity pools, it's the ongoing activity and fee generation that separate fleeting pumps from sustainable projects. Liu's comments suggest that for meme token enthusiasts and builders, chasing revenue metrics could lead to more robust evaluations than just staring at TVL dashboards.

The clip comes from a full episode of the Unchained podcast hosted by Laura Shin (watch the full episode), where Liu joins other guests like Seth Ginns from CoinFund and James Parillo (aka Velvet Milkman) from Figment Capital. The discussion spans topics like the launch of Plasma—a new stablecoin chain—the debate between TVL and revenue, and even how Pump.fun could revolutionize streaming by letting creators monetize via their own coins.

Speaking of Pump.fun, the episode dives into its potential to disrupt traditional platforms like Twitch. Imagine streaming where viewers buy into your coin instead of just donating—turning fans into investors. This "AudienceFi" model could financialize content creation, blending memes, speculation, and entertainment. Interestingly, Unchained itself experimented with this by launching their own meme token $UNCHAINED on Pump.fun (check the token), streaming live and hitting around $200K market cap quickly. It's a bold move that shows even established crypto media is betting on meme token mechanics to engage audiences.

For blockchain practitioners diving into meme tokens, this episode is a goldmine. It reminds us that while TVL grabs headlines, it's the underlying activity—trades, fees, and user engagement—that builds lasting value. If you're building or trading on Solana, shifting focus to revenue could help spot the next big meme before the crowd. Head over to the full podcast for more insights, and keep an eye on how metrics evolve in this wild space.