Compound Annual Growth Rate (CAGR)
Also known as: Annualized Growth Rate
The smoothed annual growth rate over a period of time, assuming compounding.
The Compound Annual Growth Rate (CAGR) represents the average annual growth rate of an investment or metric—such as protocol TVL or token price—over a specified period, assuming profits are reinvested at the end of each year. It’s calculated as (ending value / beginning value)^(1/number of years) − 1. CAGR is widely used to compare growth rates across different projects, chains, or assets in a normalized way, smoothing out volatility in crypto markets.