DeFi Total Value

Definition ∞ DeFi Total Value represents the aggregate amount of capital committed within decentralized finance protocols, encompassing all assets supplied to lending platforms, liquidity pools, and staking contracts. This metric serves as a primary indicator of the overall size and health of the decentralized finance ecosystem. It reflects user confidence and participation across various DeFi applications.
Context ∞ Tracking DeFi Total Value is fundamental for analyzing the expansion and adoption trends within the digital asset market. News outlets frequently reference changes in this figure to assess sector performance. Significant fluctuations can signal shifts in investor sentiment or reactions to major protocol developments and security events, providing crucial context for market observers.