Crypto glossary
TVL (total value locked)
TVL, or total value locked, is the dollar value of all crypto assets deposited in a DeFi protocol or blockchain's smart contracts at a given moment.
Total value locked adds up the assets users have deposited in a protocol's contracts, such as collateral in a lending market, tokens in liquidity pools or ETH in a staking service, and converts them to dollars at current prices. Aggregating it across protocols gives the TVL of a whole chain or of DeFi as a sector. DefiLlama is the most widely cited tracker.
TVL is used as a rough gauge of trust and adoption: more deposits generally mean more users willing to put money into a protocol. Analysts also compare a protocol's market value with its TVL to judge whether its token looks expensive.
The metric has limits. It rises and falls with token prices even if no one deposits or withdraws, the same funds can be counted twice when receipt tokens are redeposited elsewhere, and incentives can attract short-term capital that leaves as soon as rewards drop.
Example
If a lending protocol holds 50,000 ETH at $3,000 and 200 million USDC, its TVL is $350 million; if ETH falls 20% and no one moves funds, TVL drops to $320 million.
Related terms
Latest articles on TVL
- Robinhood Chain Surpasses $1.1B in TVL as Stock Tokens Become Loan Collateral
- PancakeSwap TVL Surges 19% to $2.4 Billion Following Fee Overhaul Vote Launch
- Optimism Superchain Tops $14B TVL, Signals OP Stack Ecosystem Growth
- Cardano Gains Momentum as DeFi TVL Hits Record and IOG Advances Scaling Tech
- Phantom Wallet Ends Sui Support on Sept. 24 After Sharp TVL Crash
