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What is the total value locked (TVL) in the crypto industry?

avatarDianna ElamDec 25, 2021 · 3 years ago3 answers

Can you explain what the total value locked (TVL) in the crypto industry means and how it is calculated?

What is the total value locked (TVL) in the crypto industry?

3 answers

  • avatarDec 25, 2021 · 3 years ago
    The total value locked (TVL) in the crypto industry refers to the total amount of cryptocurrency assets that are locked in various decentralized finance (DeFi) protocols. It is calculated by summing up the value of all the cryptocurrencies held in smart contracts and protocols. TVL is an important metric that indicates the level of activity and liquidity in the DeFi space. It can be used to assess the popularity and adoption of different DeFi platforms and protocols.
  • avatarDec 25, 2021 · 3 years ago
    TVL is like the 'money in the bank' for the crypto industry. It represents the total value of all the cryptocurrencies that are being used in DeFi applications. This metric is calculated by adding up the value of all the cryptocurrencies that are locked in smart contracts. TVL is a key indicator of the health and growth of the DeFi ecosystem. As the TVL increases, it shows that more people are using DeFi platforms and that there is a higher demand for decentralized financial services.
  • avatarDec 25, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, defines the total value locked (TVL) in the crypto industry as the total value of all the cryptocurrencies that are locked in smart contracts and decentralized finance (DeFi) protocols. This metric is calculated by aggregating the value of all the cryptocurrencies held in these protocols. TVL is an important measure of the liquidity and activity in the DeFi space, and it can be used to assess the popularity and adoption of different DeFi platforms and protocols.