DeFi TVL

About the Metric

TVL or Total Value Locked is a metric that measures the total dollar value of the digital asset locked or staked through decentralised finance (DeFi) platforms or decentralised applications (dApps). TVL is one of the most significant metric to value a DeFi protocol as its directly impacts its fees collected or revenue generated.

With respect to a Blockchain network (L1s and L2s), Chain-TVL is also used to refer to the percentage of the total supply of the tokens that is staked natively by validators and other participants. For example, the chain-TVL of Ethereum is the dollar value of all the ETH that is staked by validators.

For in-depth understanding of the metric refer to our guide on TVL.

Significance

TVL is an important metric when evaluating DeFi platforms since it reflects the overall capital invested inaplatform or protocol, indicating its liquidity and popularity. At IndiaCryptoResearch, the ICR score includes the Chain TVL for tokens falling under smart contract platform category and the Platform TVL for DeFi and DEXs. Higher TVL usually indicates higher adoption and thus platforms or blockchains with higher TVL generally score higher than their category counterparts.

To check the historical TVL and analysis of hundreds of platforms and chains visit the 'Our Analysis' section of the token at indiaCryptoResearch such as AAVE.