How is TVL (Total Value Locked) calculated in the cryptocurrency industry?

3 answers

• Dec 26, 2021 · 3 years ago
  TVL, or Total Value Locked, is a metric used to measure the total value of assets locked in a specific DeFi protocol or across multiple protocols. It is calculated by summing up the value of all assets held in smart contracts within the protocol(s). This includes cryptocurrencies, stablecoins, and other tokens. The value of each asset is determined based on its market price at the time of calculation. TVL provides insights into the popularity and adoption of DeFi protocols, as well as the overall health of the ecosystem.
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• Dec 26, 2021 · 3 years ago
  Calculating TVL in the cryptocurrency industry involves aggregating the value of all assets locked in smart contracts. This includes assets like Ethereum, tokens, and stablecoins. The value of each asset is determined by multiplying the quantity of the asset locked in the smart contract by its current market price. The sum of all these values gives us the TVL. It's important to note that TVL can fluctuate due to changes in asset prices and the movement of funds in and out of the smart contracts.
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• Dec 26, 2021 · 3 years ago
  To calculate TVL in the cryptocurrency industry, you need to consider the value of all assets locked in DeFi protocols. This includes cryptocurrencies, stablecoins, and other tokens. The value of each asset is determined by multiplying the quantity of the asset locked in the protocol by its current market price. The sum of all these values gives us the TVL. It's worth mentioning that TVL is a dynamic metric that can change frequently as users deposit or withdraw assets from the protocols. Therefore, it's important to regularly update the calculations to reflect the most accurate TVL.
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