What Is TVL In Defi?

In Decentralised Finance (Defi) TVl Means Total Value Locked. TVL in Defi is a key metric used to assess and represent the total value of all locked or staked assets within a particular protocol's smart contract.

Go Back
Blog Thumbnail

🕒 5:48 PM

📅 Sep 06, 2025

✍️ By kihole

TVL is a way to quantify the level of activity and adoption within a DeFi ecosystem. TVL basically assesses and represents total value of locked or staked assets in Decentralised Finance platform.

TVL is a very important and key factor for user trust and confidence. A high TVL suggests that many users have deposited their assets, indicating a strong belief in the platform's reliability and security. 

A larger TVL in a Defi is crucial because this shows Deeper Liquidity which shows the amount of capital in platform for activities like trading, borrowing providing liquidity for other traders.

TVL allows investors and users to compare the size and financial standing of different DeFi platforms, identifying which ones are leading in terms of asset utilization. 

To conclude a growing TVL helps Defi platforms in attracting new investors and Developers into their project. So TVL might be, or is in the backbone of the success of a protocol.