What is Total Value Locked (TVL)?

Total Value Locked (TVL) represents the total amount of cryptocurrencies deposited in a DeFi ecosystem

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TVL reveals the health of a DeFi protocol and its native tokens.

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This metric is essential for analyzing interest in a crypto platform over time.

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TVL doesn't include rewards earned from deposits, only the current value of the deposits themselves

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TVL can change due to deposit/withdrawal levels and fluctuating dollar value of assets.

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Traders use TVL to determine if a token's value is real.

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It helps assess if a DeFi protocol's native token is over/undervalued.

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It reflects the spot value of staked assets, including savings accounts, loan collaterals, futures contracts, and liquidity pools.

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