Total Value Locked (TVL)
The total amount of cryptocurrency deposited in DeFi protocols, measuring the size of the DeFi ecosystem.
Explained Simply
TVL (Total Value Locked) measures how much cryptocurrency is deposited in DeFi protocols like lending platforms, DEXs, and yield farms. It is the primary metric for gauging DeFi adoption and protocol health. Higher TVL generally indicates more trust and usage. As of 2026, total DeFi TVL exceeds $100 billion across hundreds of protocols. TVL can be misleading if counting the same tokens multiple times (e.g., staked ETH used as collateral), so context matters.
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