ETH Total Value Locked

Definition ∞ ETH Total Value Locked represents the aggregate amount of Ethereum (ETH) deposited into decentralized finance (DeFi) protocols. This metric quantifies the total ETH collateral securing various DeFi applications, including lending platforms, decentralized exchanges, and staking services. It serves as a key indicator of the Ethereum network’s utility and the health of its DeFi ecosystem. A higher value suggests greater participation and confidence in the associated protocols.
Context ∞ ETH Total Value Locked is a primary benchmark for assessing the growth and adoption of the Ethereum DeFi sector. Fluctuations in this metric often correlate with overall market sentiment and the introduction of new DeFi products. The expansion of liquid staking derivatives and layer-2 solutions continues to influence how ETH is locked across the ecosystem.