TVL = Total Value Locked
In Arabic: 'It is the total locked value in the protocol'

It is a measure used to know the amount of money (or rather currencies) that is stored and reserved within a specific project protocol (trading platform, lending platform, yield protocol, etc.).

Where do we see the TVL?

Not just for platforms
• Available for protocols (like Aave, Uniswap…)

• And for blockchain chains (like Ethereum, Solana…)

• And sometimes even for individual projects that have smart contracts with people’s money.

How do we understand it practically?

For example, if a DeFi platform has a TVL of 1 billion dollars
It means people are putting in 1 billion dollars in the form of loans, liquidity, collateral…

Measured in what?

Often in dollars, but you might find TVL measured in ETH or BNB depending on the protocol.

Why is it important?

• The higher the TVL, the more it indicates users' confidence in the platform or currency.

• It may indicate increased activity or higher profits for investors.

• It is considered one of the measures of strength and interest from investors in protocols.

A practical example of TVL:

Since we've explained that TVL means 'the amount of money that people are storing through staking within the project protocol', let's look at this image:


First place: Ethereum, people have put in $88.84 billion!

Second Solana:
At $63.68 billion

SUI and BNB follow

The surprise?

Fifth place HYPE with $15.53B, surpassing Cardano ADA which only has $15.21B!

What do we need to understand from this explanation?

It means people are more confident in these projects than in others in terms of staking, and they are putting in more money!

And here we can practically see the TVL measure, which allows us to compare projects and see where liquidity is actually gathering, helping us make decisions.

$BNB

$SUI

$SOL

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