Definition ∞ Locked capital growth refers to an increase in the amount of cryptocurrency or digital assets that are held in smart contracts, staking mechanisms, or other protocols, rendering them unavailable for immediate trading. This capital is often committed to secure a network, provide liquidity, or earn yield. It signifies active participation and confidence in a protocol’s economic model.
Context ∞ This metric is a key indicator in decentralized finance (DeFi) and proof-of-stake blockchain ecosystems, reflecting user engagement and the health of various protocols. Significant locked capital growth can signal increasing utility, security, and investor interest in a particular digital asset or platform. News reports frequently cite these figures to assess the robustness of DeFi markets.
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