Crypto Academy | What is Total Value Locked (TVL)?

Total Value Locked (TVL) is a metric used to measure the total value of crypto assets locked on smart contracts in decentralized finance (DeFi) platforms. It represents the amount of funds actively being used on the platform and is widely used to measure the value of a DeFi project. TVL is a very important factor in increasing the popularity of a DeFi project within the ecosystem. A high TVL rate indicates that users are actively using the platform and that funds are being invested in the project. Additionally, TVL can also be used as an indicator of the platform's liquidity.