TVL (Total Value Locked)
Total value of assets deposited in DeFi protocols — measure of adoption.
TVL (Total Value Locked) is a key DeFi ecosystem metric — total value of all cryptocurrencies deposited in smart contracts of a specific protocol or ecosystem.
Where to track:
•DefiLlama.com — most comprehensive TVL tracker
•DeFiPulse — original TVL tracker
•CoinGecko DeFi tab
What TVL tells:
•TVL growth = users trust protocol, deposit more
•TVL fall = withdrawal due to reduced trust or yield
•Protocol TVL ranking = indirect market share measure
Largest DeFi protocols by TVL (variable):
•Lido — $30+ billion (liquid staking)
•Aave — $10–15 billion (lending)
•EigenLayer — $15+ billion (restaking)
•Uniswap — $5–8 billion (DEX)
•MakerDAO/Sky — $5–10 billion (CDP)
TVL as signal:
•TVL/Market Cap ratio — if TVL is close to market cap, token potentially undervalued
•Sudden TVL drop = hack signal (attacker withdrawing funds) or exploit
•Organic TVL growth without token incentive = healthier than incentivized TVL