TVL (Total Value Locked)

The total value of digital assets staked or locked in a decentralized finance (DeFi) protocol or ecosystem, typically measured in USD.

What is TVL (Total Value Locked)?

Total Value Locked (TVL) represents the aggregate value of digital assets deposited in a DeFi protocol or across an entire blockchain ecosystem, such as Ethereum or Binance Smart Chain, expressed in a common currency like USD. TVL is a key metric used to gauge the adoption, liquidity, and overall health of DeFi platforms, reflecting the amount of capital actively utilized in activities like lending, borrowing, staking, or providing liquidity in automated market makers (AMMs). For example, assets locked in protocols like Aave, Uniswap, or Lido for lending, trading, or liquid staking contribute to their TVL.

As of September 2025, Ethereum leads with a TVL of approximately $120 billion across its DeFi ecosystem, per DeFiLlama data, driven by protocols like Lido (over $40 billion in staked ETH) and MakerDAO. TVL fluctuates with market prices and user activity; for instance, a 20% drop in ETH’s price directly reduces the USD value of ETH-based TVL, even if the number of tokens remains constant. High TVL often signals user trust and protocol utility, but it can also attract exploits, as seen in 2022’s $3.7 billion in DeFi hacks reported by Chainalysis. On platforms like X, TVL is frequently cited to compare protocol growth or highlight emerging chains like Solana, with users leveraging tools like DeFiLlama or Dune Analytics to track real-time data.

While TVL is a useful indicator, it’s not foolproof—double-counting assets (e.g., tokens used across multiple protocols) or inflated values from volatile prices can skew perceptions. Investors are advised to cross-reference TVL with metrics like protocol revenue or user activity for a comprehensive assessment.