Glossary
Total Value Locked
Total Value Locked (TVL) is the combined worth of all crypto assets deposited into a decentralized finance protocol at a given moment. It is a common gauge of how much capital a platform is holding and putting to work.
The close-up: Total Value Locked measures the assets that users have committed to a DeFi application — the tokens sitting in its smart contracts to supply liquidity, back loans, or earn rewards. TVL is usually expressed in a fiat currency such as US dollars, which means it moves for two separate reasons: when deposits actually flow in or out, and when the market price of the locked assets rises or falls. A protocol can show a rising TVL simply because its underlying tokens appreciated, even if no new capital arrived.
The wide shot: Analysts often read TVL as a rough proxy for trust and traction — the more capital users are willing to lock, the more the market appears to rely on a protocol. It is widely used to compare platforms, blockchains, and DeFi categories such as lending, decentralized exchanges, and staking.
It has real limits, though. Because TVL is price-linked, it can flatter or overstate a protocol during volatile conditions. Double-counting can also occur when assets are reused across layered protocols, and figures vary by how each source defines "locked." Treat TVL as one signal among many, not proof of quality or safety, and pair it with your own research. See related metrics on our tools page.