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According to DefiLlama data, today’s Total Value Locked (TVL) figures show notable shifts across several blockchain networks. While Aptos (APT) and Sonic have seen significant growth in TVL, major platforms like Solana, Ethereum, and Arbitrum experienced slight decreases. This article provides a detailed breakdown of these changes and explains what TVL is and why it matters – all in an easy-to-understand way for newcomers to crypto.

What is TVL and Why is it Important?

Total Value Locked (TVL) refers to the total U.S. dollar value of digital assets (such as coins, tokens, and stablecoins) that are currently locked or staked in decentralized finance (DeFi) applications on a blockchain. This metric is calculated based on the USD value of the assets and is considered an indicator of the level of interest, liquidity, and overall health of that blockchain’s DeFi ecosystem.

Put simply, a higher TVL means more users have confidence in a protocol and are locking up their assets (indicating strong participation and trust), whereas a low TVL might signal that a project is less attractive to investors.