TVL, short for Total Value Locked, is defined as the total value of locked crypto assets in smart contracts. It is a metric commonly used to measure the development status of individual or specific DeFi protocols, usually denominated in USD.
Typically, the services of DeFi protocols are based on the crypto assets locked in the platform's smart contracts. TVL can to some extent reflect the liquidity situation of DeFi protocols, with higher TVL generally indicating a better user experience. Additionally, the liquidity locked in the smart contracts of DeFi protocols is usually provided by users, so TVL can also reflect the active user base of DeFi protocols to some extent, with higher TVL generally indicating a larger active user community.