> For the complete documentation index, see [llms.txt](https://docs.satoshiterminal.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.satoshiterminal.io/research-suite/data-coverage/tokenomics/total-value-locked-tvl.md).

# Total Value Locked (TVL)

**Total Value Locked (TVL)** represents the total capital locked into DeFi protocols, usually in the form of liquidity pools or collateralized assets. TVL is a critical metric in tokenomics, providing insight into the level of capital invested in DeFi and how it correlates with the value and demand for native tokens.

**Usage**:

* **TVL as a Market Health Indicator**: TVL in DeFi platforms like **Aave** or **Compound** directly impacts the utility and value of governance tokens such as **COMP** and **AAVE**. As TVL increases, so does the demand for the token.
* **Protocol Adoption and Token Demand**: Platforms with higher TVL tend to have more robust token demand, leading to better liquidity and staking rewards for token holders.

**Key Data**:

* **TVL Growth Trends**: Changes in TVL over time, indicating platform growth or contraction.
* **TVL by Protocol**: TVL data for specific DeFi protocols, highlighting the performance of each.
* **Liquidity Provider Impact**: The amount of capital contributed by liquidity providers and its impact on protocol rewards.