TVL (total value locked)
TVL measures how much capital is deposited in a DeFi protocol or an entire blockchain; it is the key size metric for DeFi.
Explained simply
Anyone lending tokens in DeFi, placing them in a pool or depositing them as collateral "locks" them in the smart contract. The sum of all these values at current prices is the TVL.
A high TVL shows users entrust a lot of capital to the protocol. But it moves with prices: if Ether falls 30 percent, TVL drops without a single withdrawal.
From the familiar world
The assets under management of a fund house. It says something about size and trust but nothing about quality or return, and it fluctuates with the markets.
An example
The entire DeFi sector had over 150 billion US dollars in TVL at its peak. After the 2022 market slump the figure fell below 40 billion and later recovered.
Why it matters
TVL is the metric used to compare DeFi protocols and blockchains. Knowing it lets you make sense of reports about "capital outflows from DeFi" without being invested there yourself.
To pass on
„TVL is DeFi's assets under management: how much capital users have entrusted to the programs.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
21 Oaks Capital GmbH acts as a tied agent exclusively for the account and under the liability of AHP Capital Management GmbH, Weißfrauenstraße 12-16, 60311 Frankfurt am Main, Germany. This wiki is a general information service provided by 21 Oaks Capital GmbH. Its content does not constitute individual investment advice and is not a recommendation by AHP Capital Management GmbH. 21 Oaks Capital GmbH, its affiliated companies, the funds it advises or its employees may hold positions in assets explained in this wiki. The explanations are independent of this; the disclosure is made for reasons of transparency.