Total value locked (TVL) in crypto and its important
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What is the Total value locked in crypto?
TVL can be tracked for individual protocols or for the Defi ecosystem as a whole. For protocols, TVL is calculated by adding up the value of all crypto assets locked in the protocol. In addition, for the Defi ecosystem, TVL is calculated by adding up the TVL of all individual protocols.
The total value locked in Defi protocols has been on the rise in recent months, as the sector has seen a surge in popularity. The total value locked in Defi protocols was almost billions in September 2020, according to data from Defi Pulse.
Crypto price
TVL crypto price is down. TVL in decentralized finance (Defi) protocols has dropped from its all-time high of $13.6 billion to$12.4 billion. According to data from Defi Pulse. The drop in TVL comes as the prices of major Defi tokens such as Maker (MKR) and Compound (COMP) have pulled back from their recent highs.
The decline in TVL comes as the Defi sector faces increased scrutiny from regulators. However, the U.S. Securities and Exchange Commission (SEC) has launched an investigation into potential securities law violations by decentralized exchanges (DEXes). Additionally, the SEC has sent letters to a number of Defi projects, warning them that their activities may be subject to securities laws.
The drop in TVL also comes as the overall cryptocurrency market has pulled back from its recent highs. Bitcoin (BTC) and Ethereum (ETH) are both down around 10% from their all-time highs.
Despite the recent drop in TVL, the Defi sector continues to grow at a rapid pace. The number of active users on Defi protocols has doubled over the past month. In fact, the total value locked in Defi protocols is still up significantly from its level just a few months ago.
Total vale locked in all chains
The TVL in all chains is worth over $65 billion USD. This number is growing every day as more and more people adopt cryptocurrency and blockchain technology. The top five chains by value locked are:
These numbers show that the majority of value locked into chains is concentrated in just a few major projects. However, there are many other smaller chains with significant amounts of value locked in as well. For example, the ICON project has over $800 million worth of ICX tokens locked.
In fact, the total value locked into all chains is constantly growing as more people adopt cryptocurrency and blockchain technology. However, with the increasing adoption, the value locked into all chains is expected to grow even further.
How to calculate TVL?
The TVL in a decentralized exchange can be calculated by taking the sum of all the assets deposited into the exchange and subtracting any withdrawals. The result is the total amount of funds that are currently being traded on the platform. This number can fluctuate quite frequently, so it's important to check it regularly to get an accurate picture of the liquidity on the exchange.
It's important to note that the total value locked in a decentralized exchange can change very rapidly. So, it's a good idea to check it often to get an accurate picture of the liquidity on the platform.