TVL or Total Value Locked, is a metric typically used by investors to determine the total value of assets staked in a certain blockchain project or dApp. Typically, the higher the TVL of a blockchain project, the more secure or trustable it is. With how volatile the crypto market is, there must be certain indicators of how trustworthy a certain project is, and TVL is one of those indicators.

Back when Bitcoin was first created, in 2009, cryptocurrency was first introduced, and there were many altcoins created, all competing for the top spot. When Ethereum was created in 2015, it introduced smart contracts, which allowed developers to build their own applications. This resulted in a DeFi boom from 2020–2022, where a large number of dApps were created, all offering different services. Not all of these dApps were reliable/trustworthy. One of the key aspects of these dApps was staking, where users would lock away a certain number of tokens in exchange for a loan or some other service. Summing all the funds staked in a dApp is what became known as Total Value Locked or TVL. TVL became a method to measure the reliability of an application $BTC $ETH $BNB #CryptoTradingGuide #Megadrop #BinanceTournament