TVL, or total value locked, is a metric used to track the value of digital assets locked in smart contracts on the Ethereum blockchain. It is a useful metric for assessing the health of the Ethereum ecosystem and the growth of DeFi.
The TVL of a smart contract is the sum of all the value locked in that contract. For example, if there are 10 ETH locked in a smart contract, and 20 ETH locked in another smart contract, the TVL of those contracts would be 30 ETH.
TVL is a good metric for tracking the growth of DeFi because it measures the value that is being put into these decentralized protocols. As more and more value is locked into DeFi protocols, it shows that people are confident in these protocols and believe in their long-term viability.
TVL can also be used to track the health of the Ethereum ecosystem. If the TVL of Ethereum-based protocols is growing, it shows that people are still using Ethereum and building on its infrastructure.
This is important for Ethereum’s long-term success. .
What Is the TVL on Ethereum?
The TVL on Ethereum is currently $13.2 billion, which represents the value of digital assets locked in smart contracts on the Ethereum blockchain.
This metric is useful for assessing the health of the Ethereum ecosystem and the growth of DeFi. The TVL has been growing steadily over the past year, which shows that people are confident in Ethereum and believe in its long-term viability.