2026-01-06 12:23:23

DeFi Glossary Issue 39: Total Value Locked (TVL)

🔒What is Total Value Locked (TVL)? Simply put, it is the total amount of assets stored in a certain DeFi protocol.

For example—if you deposit $1,000 into a DeFi protocol, this money is now locked in the protocol. Suppose at the same time, 10 other people each deposit $1,000, then the TVL of this protocol is $11,000.

This seemingly simple number actually reflects the scale of funds and ecosystem activity of a DeFi project. The higher the TVL, the more funds the project attracts and the stronger the ecosystem engagement. It is an important indicator for assessing the health of a DeFi protocol.

💡Want to learn more? Let's dive deeper into the world of DeFi!

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LiquidatedDreams

· 19h ago

Can you make money just because TVL is high? Why am I still losing money badly?

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DiamondHands

· 01-08 19:56

A high TVL just means more newbies. Anyway, I only become truly alert when I see the numbers dropping.

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GweiWatcher

· 01-08 09:10

Is high TVL necessarily a good project? I don't think so. The key is whether the funds are genuinely coming in or just artificially inflated.

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NotFinancialAdviser

· 01-06 22:34

High TVL doesn't necessarily mean the project is good; it depends on actual usage.

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FOMOmonster

· 01-06 12:52

Is a high TVL necessarily reliable? Why do I always see projects with skyrocketing TVL that end up running away the fastest?

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ConfusedWhale

· 01-06 12:52

Is high TVL necessarily a good project? I don't think so. Some of it is just fake liquidity pumped up.

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PositionPhobia

· 01-06 12:47

Does high TVL mean the project is reliable? From what I see, a bunch of projects with inflated TVL ended up rugging.

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MevSandwich

· 01-06 12:43

High TVL doesn't necessarily mean the project is good; you also need to consider the quality of the funds and real use cases. Don't just look at the numbers and get caught off guard.

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ZenMiner

· 01-06 12:34

High TVL is the key, anything lower is pointless

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