Market Cap: $2.6864T 2.140%
Volume(24h): $106.2918B -15.750%
Fear & Greed Index:

24 - Extreme Fear

  • Market Cap: $2.6864T 2.140%
  • Volume(24h): $106.2918B -15.750%
  • Fear & Greed Index:
  • Market Cap: $2.6864T 2.140%
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What is TVL? A one-minute introduction to TVL

Total Value Locked (TVL) is a key performance indicator for DeFi platforms, reflecting the total value of assets deposited or loaned into an ecosystem, indicating its liquidity, stability, and user confidence.

Oct 23, 2024 at 06:54 pm

What is TVL? A One-Minute Introduction to TVL

1. Definition

Total Value Locked (TVL) represents the total value of assets deposited or loaned into a decentralized finance (DeFi) platform or protocol. It reflects the amount of liquidity available for use within a specific DeFi ecosystem.

2. Importance

TVL is a key performance indicator for DeFi platforms. It indicates the overall health and trust in a platform's services and security measures. A higher TVL generally indicates greater stability and user confidence.

3. Calculation

TVL is calculated by summing the value of all assets locked within a platform's smart contracts. These assets may include cryptocurrencies, stablecoins, wrapped tokens, or any other supported assets.

4. Use Cases

TVL provides valuable insights into:

  • Platform liquidity and stability
  • User participation and adoption
  • Ecosystem growth and innovation

5. TVL Rankings

Tracking TVL rankings can help investors identify the leading DeFi platforms and monitor market trends. The following are some of the major DeFi platforms ranked by TVL:

  1. OKX
  2. Uniswap
  3. Aave
  4. Curve
  5. MakerDAO

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

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