Total value locked (TVL)

Total value locked (TVL) refers to the total value of assets, typically cryptocurrencies, that are currently being held in a particular decentralized finance (DeFi) protocol or platform. This metric is used by investors and analysts to measure the popularity and success of a DeFi application. TVL is important because it shows the size of the DeFi ecosystem and can be an indicator of investor confidence in the platform. A high TVL suggests that users find the platform useful, secure, and trustworthy and can attract more investors and developers. However, it is important to note that TVL does not directly reflect the profitability of the platform or the success of a particular project. It is simply a metric that shows the amount of assets that are locked in a platform at a given time.