What is TVL in DEFI?

TVL is an index that measures the health of the DeFi market. It also makes it possible to compare the market share of the different DeFi protocols. You should know that the higher the TVL is in a DeFi project, the better it is for the market. Since the emergence of DeFi in 2017, the total value of locked funds is still on the rise.

What is the total value locked (TVL) in the Defi industry?

Ethereum, BSC, and Tron together made up a large majority of the DeFi industry's total value locked (TVL) in 2022. TVL is the closest metric within the DeFi world to an overall market size. The volatile nature of developments in this new market can also be seen in the transaction volume of NFT for various segments.

Is a Defi token overvalued or undervalued?

Investors can look at TVL when assessing whether a DeFi project’s native token is valued appropriately. The market cap of the token may be high or low relative to the TVL of the project. The more extreme the relationship, the more overvalued or undervalued the token may appear.

What is Defi insurance?

But in a truly decentralized fashion, DeFi insurance basically matches DeFi users looking to earn income with those looking to reduce risk. Nexus Mutual, for instance, is a DeFi insurance platform that allows ETH owners to pool their funds in order to provide insurance for other smart contracts.