TVL (Total Value Locked)
Total Value Locked (TVL) is a metric that estimates the value of assets deposited in DeFi protocols, such as tokens supplied to lending markets, liquidity pools #Ethereum #ETH #VirtualEthereumIndex
Total Value Locked (TVL) is a metric that estimates the value of assets deposited in DeFi protocols, such as tokens supplied to lending markets, liquidity pools, and staking contracts. TVL is commonly used as a rough gauge of DeFi adoption and liquidity depth on Ethereum and its L2s. However, TVL can be misleading if interpreted alone: it can rise or fall with token prices, it can be inflated by incentive loops, and it can double-count assets when the same collateral is rehypothecated across protocols. For mainstream analysis, TVL is best paired with usage metrics like fees, active addresses, trading volume, and protocol revenue to capture real economic throughput. In institutional research, TVL often appears in web3 market reports and tokenization discussions as an “ecosystem size” indicator. Long-tail keywords such as “Ethereum TVL,” “DeFi TVL chart,” and “TVL vs volume” are common for investors comparing Ethereum to other smart contract platforms. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary