Locked Value

Definition ∞ Locked value refers to the total amount of digital assets currently held within a specific decentralized finance (DeFi) protocol or smart contract. This metric, often expressed as Total Value Locked (TVL), represents the capital committed by users for various purposes, such as lending, staking, or providing liquidity. It serves as a key indicator of a DeFi project’s adoption, utility, and overall economic activity. A higher locked value generally signifies greater user confidence and protocol usage.
Context ∞ Locked value is a frequently cited metric in crypto news, particularly when discussing the growth and health of the DeFi sector. Significant increases or decreases in a protocol’s TVL often correspond with news about new features, security exploits, or changes in market sentiment. This metric helps investors assess the perceived utility and security of decentralized applications, offering a quantitative measure of participation and capital deployment within the DeFi ecosystem.