Definition ∞ TVL growth trajectory refers to the observed pattern and rate of increase in a decentralized finance protocol’s Total Value Locked. TVL represents the total amount of digital assets deposited into a DeFi application. A positive growth trajectory indicates increasing user adoption and confidence in the protocol. This metric is a key indicator of a project’s market standing and utility.
Context ∞ TVL growth trajectory is a widely reported metric in crypto news, serving as a primary measure of success and activity within the DeFi sector. Analysts closely watch these trends to assess the health and expansion of various protocols. Significant shifts in TVL can signal changes in market sentiment or the emergence of new dominant platforms.