Home Cryptocurrency Why TVL Matters in DeFi: Total Value Locked Explained

Why TVL Matters in DeFi: Total Value Locked Explained

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A project’s TVL doesn’t only change when users make new deposits or withdraw their assets. It is constantly changing in line with the fluctuating dollar value of all those assets in the cryptocurrency market. Some or even all of a DeFi protocol’s deposits may be denominated in its native token. When its native token appreciates in value, the protocol’s TVL grows in tandem.

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