What does TVL indicate in the crypto space?

3 answers

• Jan 14, 2022 · 3 years ago
  TVL stands for Total Value Locked and it is a metric used to measure the total value of assets locked in a decentralized finance (DeFi) protocol or platform. It is calculated by summing up the value of all the assets, such as cryptocurrencies or tokens, that are deposited or staked in the protocol. TVL is important because it provides insights into the popularity and adoption of a DeFi platform. Higher TVL indicates that more users are using the platform and have trust in its security and functionality.
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• Jan 14, 2022 · 3 years ago
  In simple terms, TVL is like the amount of money that people have invested or locked in a particular DeFi platform. It gives an idea of how much trust and confidence people have in that platform. The higher the TVL, the more popular and trusted the platform is. It's an important metric for investors and users to consider when evaluating different DeFi projects.
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• Jan 14, 2022 · 3 years ago
  TVL, also known as Total Value Locked, is a metric that measures the total value of assets locked in a DeFi protocol or platform. It is calculated by multiplying the total amount of a specific cryptocurrency or token locked in the protocol by its current market price. TVL is an important indicator of the size and success of a DeFi platform. It shows the amount of capital that users have committed to the platform, which can be a sign of its stability and potential for growth. BYDFi, a popular DeFi platform, has a high TVL, indicating its strong user base and trustworthiness.
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