High Tvl

Definition ∞ High TVL, or High Total Value Locked, indicates a substantial amount of assets committed to a decentralized finance (DeFi) protocol. This metric measures the total value of cryptocurrency deposited and held within a specific DeFi application, such as a lending platform or decentralized exchange. A high TVL often signifies strong user confidence, deep liquidity, and a robust ecosystem for the protocol. It suggests significant utility and adoption.
Context ∞ High TVL is a key indicator of a DeFi protocol’s success and operational security, frequently cited in industry news and analyses. Protocols with consistently high TVL tend to attract more users and capital, creating a positive feedback loop. However, it also highlights the concentration of assets, which can present systemic risks if security flaws are present.