total value locked
Total cryptocurrency deposited in a DeFi platform or protocol.
Total Value Locked (TVL) measures the amount of cryptocurrency that users have deposited into a decentralized finance (DeFi) platform. It’s calculated by adding up the value of all crypto assets sitting in the platform’s smart contracts, usually converted to US dollars for comparison.
TVL exists as a metric because DeFi platforms need users to deposit funds in order to function—those deposits create the liquidity that allows lending, trading, or other financial services to happen. When you see TVL mentioned in headlines, it indicates how much activity and user trust a platform has attracted. A rising TVL suggests more people are using the platform; a falling TVL suggests users are withdrawing their funds. However, TVL alone doesn’t tell you if a platform is profitable, secure, or sustainable.
Written once as a plain-English reference, not as advice. Nothing here is a recommendation to buy or sell anything.