Time-Lapse aims to drastically reduce the time during a video clip. This is traditionally done by capturing frames much slower and playing them back faster. With time-lapse, video editing software will remove frames to create the effect of faster action in a clip.
As a result, it works exceptionally well for extremely long clips to make time go by quickly. For instance, using time-lapse to reduce a sunrise (or sunset) to a few seconds versus minutes can add a stimulating effect to your videos.