How exactly is the total value locked (TVL) often mentioned in the data calculated?
My understanding: The locked assets in many Ethereum protocols include a lot of ETH and ETH-derivative tokens, so fluctuations in the price of ETH can affect these protocols’ TVL.
TVL is not the same as protocol revenue, user numbers, or trading volume.
What I do: When looking at changes in TVL, I first distinguish whether they’re caused by price movements or by funds actually flowing in or out.
Back to the market: $ETH is quoted at 2237.9, 24h -0.25%.
This may not be entirely accurate, so make your own decisions.
My understanding: The locked assets in many Ethereum protocols include a lot of ETH and ETH-derivative tokens, so fluctuations in the price of ETH can affect these protocols’ TVL.
TVL is not the same as protocol revenue, user numbers, or trading volume.
What I do: When looking at changes in TVL, I first distinguish whether they’re caused by price movements or by funds actually flowing in or out.
Back to the market: $ETH is quoted at 2237.9, 24h -0.25%.
This may not be entirely accurate, so make your own decisions.
