Network Value Locked

Definition ∞ Network Value Locked represents the total monetary value of digital assets held within a specific blockchain network or decentralized finance protocol. This metric measures the amount of capital committed to smart contracts, often for purposes like lending, staking, or providing liquidity. It serves as an indicator of user confidence, protocol utility, and the overall economic activity within a decentralized system. A higher value locked often suggests greater network adoption.
Context ∞ Network Value Locked is a widely reported metric in crypto news, used to gauge the health and popularity of various blockchain platforms and DeFi applications. Changes in this value can signal shifts in market sentiment, user behavior, or the effectiveness of protocol updates. Analysts frequently monitor Network Value Locked to assess the financial stability and growth trajectory of digital asset ecosystems.