TVL
Total Value Locked. The total amount of assets deposited in a DeFi protocol, used as a key metric to measure the protocol's adoption and health.
Why It Matters
Total Value Locked (TVL) indicates the overall amount of assets locked in decentralized finance (DeFi) protocols. This is a useful measure of a project's popularity and usage in the DeFi ecosystem.
Example
For instance, if a lending platform shows a TVL of $100 million, it signifies that many users trust that protocol to securely hold their funds for lending and borrowing.
Beginner Context
For beginners, understanding TVL can shed light on the health and attractiveness of different DeFi projects, aiding in making informed decisions within the ecosystem.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
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