Total value locked (TVL) in crypto and its important

In the cryptocurrency space, TVL is a metric used to track the total value of all digital assets locked in decentralized finance protocols. However, by tracking TVL, analysts and investors can get a sense of how much capital is being deployed in Defi protocols. Besides that investors also get to know which protocols are attracting the most capital. 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...