The value inflation on-chain and in DeFi protocols is much more severe than in previous cycles. 1 original ETH turns into LST, then gets deposited and becomes LRT, then used in Aave or other lending platforms as collateral to borrow stablecoins, which are then used to buy ETH and repeat the cycle. Under this high-frequency loop, 1 dollar of native capital on-chain can be amplified into $3~$5 of TVL.