Table of contents
TVL data is updated every 15 minutes. Sources: defillama.com, santiment.net
Total Value Locked of popular cryptocurrencies
| Cryptocurrency | Total Value Locked (TVL) | Market Cap | Market Cap/TVL Ratio |
|---|---|---|---|
 Bitcoin | $8.67B | $2.34T | 269.7 |
 Ethereum | $91.06B | $521.61B | 5.73 |
 BNB | $7.98B | $141.97B | 17.79 |
 Solana | $12.01B | $119.34B | 9.94 |
 Tron | $6.22B | $32.18B | 5.17 |
 Cardano | $340.06M | $30.64B | 90.1 |
 Chainlink | – | $15.16B | – |
 Avalanche | $2.24B | $12.88B | 5.74 |
 Sui | $2.27B | $12.5B | 5.51 |
 Stellar | $148.16M | $12.37B | 83.46 |
 Hedera | $114.67M | $9.44B | 82.28 |
 Polkadot | – | $6.18B | – |
 Uniswap | $2.86B | $4.77B | 1.67 |
 Aave | $44.4B | $4.36B | 0.098 |
 NEAR Protocol | $173.02M | $3.5B | 20.23 |
 Ondo | – | $2.91B | – |
 Cosmos | – | $1.97B | – |
 Algorand | $75.25M | $1.91B | 25.36 |
 Bonk | $47.42M | $1.56B | 32.9 |
 Sonic (Fantom) | $261.93M | $1.04B | 3.97 |
 Tezos | $42.96M | $731.05M | 17.02 |
 Compound | $2.93B | $411.41M | 0.14 |
 Harmony | $1.18M | $140.54M | 118.96 |
You’ll find more interesting metrics and indicators in our article on analyzing and evaluating cryptocurrencies.
What is the TVL (Total Value Locked) of Ethereum?
The current Total Value Locked (TVL) of Ethereum (ETH) is $91.06B. This figure includes all assets locked on the blockchain or in DeFi protocols. With a market capitalization of $521.61B, this results in a market cap to TVL ratio of 5.73.
How is TVL calculated?
TVL (Total Value Locked) is calculated by summing up all digital assets currently locked in a specific DeFi protocol or smart contract. These assets can include cryptocurrencies, stablecoins, staking deposits, or other tokens used as collateral for loans or to provide liquidity to the platform.
Example: A DeFi platform holds $10 million in ETH, $3 million in USDT, and $2 million in other tokens in its smart contracts. The Total Value Locked (TVL) would therefore amount to $15 million in total.
Market Cap to TVL Ratio
The market cap to TVL ratio is one of many indicators used to evaluate a crypto project. The relationship between the project’s market valuation and its actual usage (TVL = assets locked in the protocol) can signal whether a DeFi protocol might be over- or undervalued. The lower the ratio, the better.
Example: A project has a market capitalization of $5 million and a TVL of $30 million. The market cap to TVL ratio would be 0.16 (5 divided by 30), suggesting that the project might be significantly undervalued.
Use of Total Value Locked (TVL) as an Indicator
TVL is a crucial metric for assessing the overall DeFi ecosystem. It serves as an objective indicator of confidence in a particular protocol. TVL is especially used in the following areas:
Adoption and trust: TVL is a key figure for evaluating the acceptance of DeFi protocols and, more broadly, the entire DeFi ecosystem. A rising TVL indicates a growing user base, reflecting the success and popularity of a protocol. Tracking TVL over time also gives investors insights into the level of trust: an increasing TVL signals growing confidence in the protocol’s functionality.
Liquidity: TVL provides an estimate of the liquidity available within the ecosystem. High liquidity offers better yields and more efficient opportunities for trading, lending, and borrowing in the crypto space.
Performance and security: Regularly monitoring TVL helps track the development and stability of protocols. It’s also useful for assessing the security standards of different Proof-of-Stake (PoS) blockchains.
Comparative analysis: TVL enables direct comparisons between various protocols. For example, it allows analysis of growth rates between newer protocols and established ones.
Limitations of the “Total Value Locked” Metric
While Total Value Locked (TVL) is an important indicator for evaluating DeFi platforms, it should be used cautiously because several factors can limit its significance:
Surface-level measurement of user activity: TVL measures the value of locked assets but doesn’t indicate how active users are. A high TVL can exist even if only a few users are participating, potentially creating the illusion of a dynamic platform despite minimal user engagement.
Not a direct indicator of quality or security: A high TVL doesn’t necessarily guarantee a platform’s quality or security. Some platforms with high TVL may have inadequate security protocols or poor infrastructure, increasing risks for users.
Sensitivity to market fluctuations: TVL is heavily influenced by the price volatility of cryptocurrencies. A sudden rise or fall in asset prices can drastically change the TVL, without necessarily reflecting changes in user activity or the protocol’s fundamental value.
Timeliness and accuracy of data: The reliability of TVL depends on how current and precise the data is. Delays in data collection can create a distorted picture of actual value locked.
Potential for manipulation: TVL can be manipulated through various strategies, such as temporarily injecting large amounts of assets by developers or major investors to create the appearance of strong user participation. Such artificial inflations are often intended to attract attention and capital without reflecting a sustainable user base.
Not a standalone basis for decisions: While TVL is a useful metric, it should not be used in isolation when making investment decisions. A thorough analysis should also consider governance structures, the depth of liquidity pools, community engagement, as well as the long-term sustainability and innovation potential of the platform.
About the author
Hi, I'm Philipp. 👋
Founder coinbird.com
With over 15 years of experience in the IT sector, I love building easy-to-use digital products that actually help people. In 2017, I fell down the Bitcoin rabbit hole and gradually realized that the crypto world lacked simple, user-friendly tools for everyday people. That’s why I created coinbird.com – to make crypto easier to understand, more accessible, and transparent.
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