What is TVL In Crypto? What does TVL mean crypto?

TVL is a commonly used term in decentralized finance, but you might be wondering what is TVL crypto?

TVL meaning crypto is the total amount of assets that are staked in a DeFi protocol, not counting the outstanding loans on the smart contract. All assets staked and secured on the smart contract protocol are considered "locked-in" and represent the TVL of that protocol.

When performing on-chain analysis, asking what is TVL and the TVL crypto meaning of a protocol is necessary to find the right projects.

The TVL of a protocol shows the value of assets in:


  • Staking
  • Lending
  • Liquidity pools.

It is important to note that the TVL meaning only shows the current value of the assets, and not the value of expected returns or profits.

The value of the TVL on a protocol changes according to the market and also the deposits and withdrawals performed on the protocol. If the market price of denominated assets changes, the TVL changes, too.

Some protocols have their native tokens as the dominant asset locked up in their staking or liquidity pools. The TVL of such projects also fluctuate according to the price of the native token.

What is total value locked and how is it calculated?

The three important parameters needed are the current price, the  market cap, and the total amount of assets. The TVL is calculated by multiplying the amount of assets locked in a protocol by the current market prices of the assets.

What does TVL mean to crypto traders?

Traders use the TVL metric to determine the strength of a protocand and make key investment decisions.

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