This is quite relevant in the DeFi environment as it was essentially going on a downward trend since late April 2022.
TVL in the crypto market
TVL in crypto refers to the Total Value Locked, which is the total value measured in dollars of all tokens that are locked in decentralized finance protocols.
Obviously most of this TVL is locked within smart contracts on Ethereum, although to date almost 45% is on other chains. Among them, there are also layer-2 solutions on Ethereum, such as Polygon, Abritrum, Optimis, and Base, on which altogether there is another 5%. So combining Ethereum and its layer-2s, it’s a TVL of more than 60%.
Since it is measured in dollars obviously its value also varies just as the market prices of the tokens locked in the DeFi protocols change, which is probably why it fell so much in 2022, and has been rising again in recent weeks.
The 2022 crash
For the same reason, the absolute peak was reached in November 2021, when DeFi’s total TVL came close to $1
We współpracy z: https://en.cryptonomist.ch/2023/11/11/crypto-tvl-finally-rise-again/
