Total Value Locked (TVL)

Total value locked (TVL) refers to the total amount of cryptocurrency assets deposited in a decentralized finance protocol or platform. It is typically calculated by summing the value of tokens locked in smart contracts for activities such as lending, staking, and liquidity provision. Total value locked is commonly expressed in a fiat currency, such as US dollars, to allow easier comparison across platforms. This metric reflects how much capital users have committed to a protocol at a given time. Changes in total value locked can indicate shifts in user participation or asset prices.