Today, I will teach you how to check TVL, which is often used when looking at public chain projects or DEFI projects.
1. What is TVL?
TVL, which stands for "Total Value Locked." Simply put, it refers to how much capital is locked in applications on the chain.
For example, if you deposit money into a DeFi lending platform and stake it in a liquidity pool, that money will count towards the TVL.
It represents the size of the capital pool of a public chain.
2. How to check TVL?
The simplest tool is DefiLlama.
Open the homepage → select "Chains," and you can see the TVL rankings of various public chains. We can see that Ethereum ranks first, followed by Solana in second, and Bitcoin in third.
By clicking on a specific chain, you can also see its TVL trend chart and which protocols in the ecosystem have the most locked funds.
For example, on Ethereum, the top ones are LIDO, Aave, and Eigenlayer.
Of course, other tools can also be used, but DefiLlama is the most intuitive and free.
3. Why check TVL?
Because TVL = trust level of funds.
A high amount of money indicates that more people are willing to place their funds in applications on this chain, which means a higher trust level.
Chains with high TVL usually have more prosperous ecosystems and more applications.
From an investment perspective, where the funds flow is where the opportunities lie.
4. When to check TVL?
When researching new chains: check its TVL ranking to determine if funds are flowing in.
When evaluating a specific project: for example, if you want to invest in a certain DeFi protocol, first check its TVL ranking and trend.
When comparing the competitiveness of public chains: for example, Ethereum vs Solana vs BNB, see who attracts more funds.
5. What to pay attention to when checking TVL?
Trends are more important than values: is it continuously rising or rapidly falling?
Is it artificially inflated: some projects rely on "mining subsidies" to boost TVL, and once the rewards stop, the funds leave.
Combine with other indicators: a high TVL does not necessarily mean many users; you also need to look at active addresses and trading volume.
In summary
TVL is essentially about how much money is on a chain.
You just need to go to DefiLlama to see the TVL rankings and trends of various protocols on different chains.
But remember: don't just look at the size of the numbers; pay more attention to the trends and whether the funds are "truly flowing in."
Welcome to join the community
Welcome to join the community WeChat: BQ221858
Welcome to follow Weibo: @QuarkMing202
Welcome to follow Twitter: @xian202766693