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Vaulted Supply Growth

Definition

Vaulted supply growth describes an increase in the amount of a digital asset that is locked within smart contracts or specialized protocols, effectively removing it from immediate circulation. This can occur through staking, lending, liquidity provision, or other decentralized finance applications where assets are deposited for a specific purpose. Growth in vaulted supply indicates increasing utility and adoption of these protocols, reducing the liquid supply available on exchanges. It suggests a higher demand for asset utilization within the ecosystem.