Network Total Value

Definition ∞ Network total value represents the aggregate worth of all assets, transactions, or economic activity occurring on a specific blockchain network. This metric provides an indicator of the network’s overall utility and adoption. It includes the market capitalization of its native token, the value locked in decentralized finance protocols, and the volume of transactions processed. A higher total value often correlates with increased network security and utility.
Context ∞ Analyzing network total value is a key method for assessing the economic health and growth trajectory of various blockchain ecosystems. Discussions often compare this metric across different chains to evaluate their relative success and potential for future expansion. Investors and developers closely monitor changes in network total value as a proxy for platform relevance and user engagement.