Why is TVL in crypto considered an important metric?

7 answers

• sodaSep 18, 2020 · 5 years ago
  Total Value Locked (TVL) is a metric used in the crypto industry to measure the total value of assets locked in decentralized finance (DeFi) protocols. It provides insights into the amount of capital invested in these protocols and reflects the level of trust and confidence users have in them. TVL is considered an important metric because it indicates the popularity and adoption of DeFi platforms, and can be used to assess the overall health and growth of the DeFi ecosystem.
  479

  240
• Prithul ChaturvediDec 04, 2021 · 4 years ago
  TVL is like the pulse of the DeFi world. It shows how much money people are willing to put into these decentralized platforms. The higher the TVL, the more people trust the protocols and are willing to invest their assets. It's an important metric because it gives a sense of the overall activity and interest in the DeFi space. Plus, it's a great way to compare different protocols and see which ones are attracting the most capital.
  434

  145
• LARISSA STEFANI DE JESUSJul 13, 2025 · 4 months ago
  BYDFi, a leading crypto exchange, recognizes the importance of TVL as a metric in the crypto industry. TVL provides valuable insights into the growth and adoption of DeFi protocols. It helps investors and traders make informed decisions by assessing the popularity and trustworthiness of different platforms. With TVL, users can gauge the potential risks and rewards associated with investing in DeFi projects. It's definitely a metric worth keeping an eye on.
  460

  115
• Al-hashmy kingAug 15, 2025 · 3 months ago
  TVL, or Total Value Locked, is a key metric in the crypto world. It measures the total value of assets locked in DeFi protocols, which are decentralized platforms that enable financial activities without intermediaries. TVL is important because it reflects the level of activity and capital flowing into DeFi. It can indicate the success and potential of a project, as well as the overall health of the DeFi ecosystem. So, if you're interested in the crypto space, TVL is definitely a metric you should pay attention to.
  520

  104
• gustavo alfonso restrepo mejiaApr 04, 2021 · 5 years ago
  When it comes to the crypto industry, TVL is a metric that can't be ignored. It shows the total value of assets locked in DeFi protocols, which are becoming increasingly popular. TVL is important because it gives an indication of the level of trust and confidence users have in these protocols. It's a way to measure the success and adoption of DeFi platforms, and can help investors and traders identify promising projects. So, if you want to stay ahead in the crypto game, keeping an eye on TVL is a must.
  507

  85
• Lare xabatFeb 18, 2022 · 4 years ago
  TVL, short for Total Value Locked, is a metric that holds a lot of weight in the crypto world. It represents the total value of assets locked in DeFi protocols, which are decentralized financial platforms. TVL is considered important because it reflects the level of activity and interest in the DeFi space. It's a way to measure the popularity and adoption of different protocols, and can be used to identify trends and opportunities in the market. So, if you want to stay informed about the latest happenings in crypto, TVL is definitely a metric to watch.
  558

  80
• Bearcin46Nov 25, 2024 · a year ago
  TVL, or Total Value Locked, is a metric that has gained significant attention in the crypto industry. It measures the total value of assets locked in DeFi protocols, which are decentralized platforms that offer various financial services. TVL is considered important because it provides insights into the level of trust and confidence users have in these protocols. It can also indicate the overall health and growth of the DeFi ecosystem. So, if you're interested in the crypto space, understanding TVL is crucial for making informed investment decisions.
  556

  70