What is Total Value Locked (TVL)?
Total Value Locked (TVL) represents the total amount of cryptocurrencies deposited in a DeFi ecosystem
TVL reveals the health of a DeFi protocol and its native tokens
This metric is essential for analyzing interest in a crypto platform over time
TVL doesn't include rewards earned from deposits; it only reflects the current value of the deposits themselves
TVL can change due to deposit/withdrawal levels and the fluctuating dollar value of assets
Traders use TVL to determine if a token's value is real, helping to assess if a DeFi protocol's native token is over/undervalued
TVL reflects the spot value of staked assets, including savings accounts, loan collaterals, futures contracts, and liquidity pools