Value Locked

Definition ∞ Value Locked, often abbreviated as TVL (Total Value Locked), represents the aggregate amount of digital assets deposited or staked within a specific decentralized finance (DeFi) protocol or application. It serves as a key metric to gauge the popularity, liquidity, and overall health of a DeFi project. A higher value locked typically indicates greater user confidence and utility within the protocol. This metric helps assess the scale of a DeFi ecosystem.
Context ∞ Total Value Locked is a widely cited metric in cryptocurrency news and analysis, used to compare the size and adoption of different DeFi platforms and assess market trends. Fluctuations in TVL often reflect shifts in investor sentiment, protocol updates, or broader market conditions. Monitoring changes in value locked provides important context for understanding the growth and stability of the decentralized finance sector.