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, only the current value of the deposits themselves
TVL can change due to deposit/withdrawal levels and fluctuating dollar value of assets.
Traders use TVL to determine if a token's value is real.
It helps assess if a DeFi protocol's native token is over/undervalued.
It reflects the spot value of staked assets, including savings accounts, loan collaterals, futures contracts, and liquidity pools.