The Total Value Locked or TVL crypto is the total amount of cryptocurrencies deposited in a protocol or a decentralised application (dApp) in a given timeframe.
TVL is mainly used for decentralised finance (DeFi) applications such as staking or lending protocols.
Total Value Locked is a crypto indicator that is particularly useful for quantifying and analysing the adoption and diffusion of a DeFi protocol among users.
The TVL in crypto is also used to assess the liquidity and thus the soundness of a decentralised platform or application. The more users lock their cryptocurrencies into a protocol, the greater the liquidity available to the project, which is crucial for any DeFi service.