Tvl Record

Definition ∞ A TVL (Total Value Locked) record denotes the historical peak or current highest value of assets deposited and held within a specific decentralized finance (DeFi) protocol or the entire DeFi ecosystem. This metric quantifies the total capital committed to smart contracts for various activities like lending, borrowing, or providing liquidity. A high TVL often signifies strong user confidence and the protocol’s utility and growth. It serves as a key indicator of market adoption.
Context ∞ TVL records are consistently reported and analyzed in cryptocurrency news, serving as a primary indicator of the health, growth, and popularity of decentralized finance protocols. Reaching new TVL highs often signals increasing adoption and liquidity within the DeFi space, while declines can suggest market corrections or shifts in user preferences. The competition among protocols to attract and maintain a high TVL drives innovation in yield strategies and incentive programs.