The current total value of a cryptocurrency that users "lock up" in various lending and staking protocols. Total value locked (TVL) can be crypto locked up in a smart contract for any project, in a liquidity pool for lending or staked in a blockchain node for mining crypto that uses a proof-of-stake (PoS) consensus method. TVL is widely used to measure the health of a crypto. See liquidity pool
, proof-of-stake algorithm
Market Cap/TVL Indicator
Crypto market cap is the current price times total outstanding tokens, which shows the total amount invested at the moment.
The mCap/TVL (market cap/TVL) indicator is more insightful, because the higher the TVL, the greater the interest in long-term investment is presumed. Like a bond, CD or savings account, crypto is lent for yield, and as long as the yield keeps coming in, the investment can stay locked in.