What does TVL (Total Value Locked) mean in the context of cryptocurrency?

Can you explain the concept of TVL (Total Value Locked) in the context of cryptocurrency? How does it relate to decentralized finance (DeFi) and why is it important?

1 answers
- TVL, also known as Total Value Locked, is a term used in the cryptocurrency industry to measure the total value of assets that are currently locked or deposited in a decentralized finance (DeFi) platform. It is an important metric that reflects the level of activity and liquidity within the platform. The TVL includes the value of all the assets, such as cryptocurrencies and stablecoins, that users have deposited into the platform. The higher the TVL, the more assets are being utilized within the platform, which indicates a higher level of trust and adoption by users. This metric is often used to compare different DeFi platforms and assess their popularity and growth. It provides valuable insights into the overall health and success of a DeFi platform and can influence investment decisions and strategies.
Mar 19, 2022 · 3 years ago
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