TVL (total value locked) explained in three sentences:
TVL is calculated using the market prices of assets, so price fluctuations alone can change TVL, even when no funds flow in or out.
Many protocols on Ethereum have significant amounts of ETH and ETH-derived assets locked in them, so ETH price fluctuations affect their TVL.
A high TVL does not mean a protocol is safe; protocols with more funds are also more likely to be targeted by hackers.
$ETH 2424.02 (-0.7%)
TVL is calculated using the market prices of assets, so price fluctuations alone can change TVL, even when no funds flow in or out.
Many protocols on Ethereum have significant amounts of ETH and ETH-derived assets locked in them, so ETH price fluctuations affect their TVL.
A high TVL does not mean a protocol is safe; protocols with more funds are also more likely to be targeted by hackers.
$ETH 2424.02 (-0.7%)