What is TVL
TVL, or Total Value Locked, is a metric used to measure the total value of assets locked in a particular blockchain, protocol, or smart contract. It's a way to gauge the overall health and adoption of a specific ecosystem within the cryptocurrency space. In simpler terms, TVL represents the total amount of money that is currently being utilized within a particular platform or network.
To understand TVL better, let's consider an example. Imagine a decentralized lending platform that allows users to lend and borrow cryptocurrencies. The TVL of this platform would be the total value of all the assets that are currently being lent or borrowed. This metric gives us an idea of how much value is being generated within the platform and how widely it's being adopted.
TVL is often used to compare the size and growth of different blockchain ecosystems. For instance, we can compare the TVL of Ethereum with that of Cardano to see which one has more value locked in its smart contracts. This metric is particularly useful for investors and researchers who want to understand the market trends and potential of different blockchain platforms.
What is TVL in Crypto?
In the context of cryptocurrency, TVL is an important metric that helps us understand the overall adoption and usage of a particular blockchain or protocol. It's a way to measure the total value of assets that are being utilized within a specific ecosystem. TVL can be used to track the growth of a particular platform over time and compare it with other platforms.
For example, the TVL of DeFi protocols like Aave and EigenLayer can be used to gauge the overall adoption of decentralized finance within the Ethereum ecosystem. Similarly, the TVL of Cosmos and Arbitrum can be used to compare the growth of different layer-1 and layer-2 blockchain platforms.
What does TVL mean for Blockchain Adoption?
TVL is an important indicator of blockchain adoption. A high TVL indicates that a particular platform or protocol is widely adopted and has a large user base. On the other hand, a low TVL may indicate that a platform is struggling to gain traction.
For instance, Ethereum's TVL has consistently been one of the highest in the cryptocurrency space, indicating its widespread adoption and usage. Similarly, Cardano's TVL has been growing steadily over the past year, indicating its increasing adoption and usage.
How does TVL work?
Moreover, TVL is a dynamic metric that can fluctuate significantly based on market conditions, user activity, and protocol developments. When a protocol attracts more liquidity, whether through incentives or enhanced features, TVL rises, indicating increased confidence in the platform. Conversely, if users withdraw their assets or if the market experiences a downturn, TVL may decrease, raising concerns about the platform's viability.
How is TVL Calculated?
TVL is typically calculated by adding up the total value of all the assets that are locked in a particular blockchain or protocol. This can include assets such as coins and tokens that users have deposited or staked.
For example, the TVL of a decentralized lending platform would be calculated by adding up the total value of all the assets that are currently being lent or borrowed. This would include the value of the cryptocurrencies being lent, as well as the value of the interest being earned.
The valuation is typically done in USD and is updated in real-time to reflect changes in the market price of the assets involved. For instance, if a user deposits 10 ETH when the price is $3,000, this contributes $30,000 to the TVL of that platform.
What is the Difference between TVL and Market Capitalization?
TVL and market capitalization are two different metrics that are often used to measure the size and growth of a particular blockchain or protocol. Market capitalization refers to the total value of all the outstanding tokens or coins of a particular cryptocurrency.
On the other hand, TVL refers to the total value of all the assets that are currently locked to be utilized within a particular ecosystem. While market capitalization gives us an idea of the total value of a particular cryptocurrency, TVL gives us an idea of the total value of all the assets that are being utilized within a particular platform or network.
How does TVL Impact the Volatility of Cryptocurrencies?
TVL can have a significant impact on the volatility of cryptocurrencies. A high TVL can indicate that a particular platform or protocol is widely adopted and has a large user base, which can be a source of liquidity and reduce its volatility. On the other hand, a low TVL may indicate that a platform is struggling to gain traction, which can increase its volatility.
It also works the other way around: in a stable market, participants are more eager to stake and lend their funds, while a volatile market might make investors worry about the funds locked and resort to swapping their assets into stablecoins.
What is Bitcoin's TVL?
Between October and December 2024, Bitcoin's TVL skyrocketed sevenfold. The current Bitcoin's TVL is around $7 billion.
What is Ethereum's TVL?
Ethereum's TVL is one of the highest in the cryptocurrency space, with over $60 billion in assets locked in its smart contracts.
What is Cardano's TVL?
At the beginning of 2025, Cardano's TVL has steadily held its ground at approximately $500 million. It is worth noting that ADA's TVL does not include the amount of ADA locked in native staking.
What is Solana's TVL?
Solana's TVL has been rapidly growing, recently reaching $12 billion, a testament to the platform's enduring popularity and widespread adoption within the cryptocurrency ecosystem.
What is Sui's TVL?
What is Aave's TVL?
Aave is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies in a secure, transparent, and decentralized environment. AAVE's TVL is currently around $20 billion.
What is Cosmos's TVL?
CosmosHub's TVL includes combined TVLs of Cronos, dYdX, Thorchain, Kava, Osmosis, Injective, Mantra and smaller blockchains in the Cosmos ecosystem. With all TVLs combined, Cosmos's TVL reaches around $1.5 billion in total.
What is Base's TVL?
Coinbase's Layer 2 blockchain, Base, and its TVL have been growing at a steady pace, reaching a peak TVL of $4 billion and currently holding up at around $3.5 billion.
What is EigenLayer's TVL?
EigenLayer is a DeFi protocol enabling developers to leverage staked ETH or ERC20 tokens as cryptoeconomic security for various protocols beyond Ethereum. EigenLayer's TVL is around $13 billion, comparable to the entire TVL of the Solana blockchain.
What is Ethena's TVL?
Ethena is a decentralized protocol aiming to provide a new stable asset through a combination of algorithmic mechanisms and collateralization. Ethena's TVL is around $5 billion.
What is Arbitrum's TVL?
Arbitrum has consistently maintained a strong presence in the market, hovering around the impressive $3 billion mark.
What is Aptos's TVL?
Following a strong and confident rally, Aptos's TVL has reached $1 billion, marking a significant achievement for the platform.
What is Shibarium's TVL?
Despite Shiba Inu starting out as nothing but a meme coin, Shibarium's TVL has reached a $6 million TVL milestone at its peak and currently holds up at around $3 million.
