Background & Context
In crypto, the term TVL (Total Value Locked) has become one of the most widely used metrics for measuring on-chain activity. It’s often treated as a single, universal number — a quick way to compare the size or success of networks and protocols.
But in reality, TVL isn’t one-dimensional.
Different data providers, analysts, and communities calculate it in different ways — sometimes counting liquidity in DeFi apps, sometimes stablecoin supply, sometimes even staked assets or tokenized real-world value.
As a result, people look at the same blockchain and see multiple TVLs, each telling a different story.
One dashboard shows $500M, another shows $2B — both correct, but describing different parts of the ecosystem.
This confusion matters because TVL drives narratives:
it influences how investors judge ecosystem growth, how projects position themselves, and how communities measure adoption and liquidity.
To make sense of it, we need to separate the layers —
from stablecoin liquidity, to DeFi capital, to staked security, to real-world assets entering the chain.
1️⃣ DeFi TVL (Total Value Locked in DeFi)
Definition:
The total value of all digital assets that are deposited into decentralized finance (DeFi) smart contracts, including lending protocols, liquidity pools, yield vaults, and derivatives platforms.
It measures the amount of on-chain capital actively committed to DeFi activities.
Formula:
DeFi TVL = Σ (value of assets locked across all DeFi protocols on a network)
2️⃣ Stablecoin Supply TVL
Definition:
The total circulating supply of stablecoins (e.g., USDC, USDT, DAI, etc.) that exist on a blockchain — whether they are in wallets, exchanges, or protocols.
It represents the aggregate amount of stable-value tokens available on-chain, regardless of whether they are being utilized in DeFi.
Formula:
Stablecoin Supply TVL = Σ (circulating supply of all stablecoins on the network)
3️⃣ Stablecoin DeFi TVL
Definition:
The subset of stablecoin supply that is actively locked or used within DeFi protocols.
This includes stablecoins supplied to lending markets, deposited into liquidity pools, or staked in yield strategies.
It reflects the portion of stable liquidity deployed in DeFi.
Formula:
Stablecoin DeFi TVL = Σ (stablecoin value locked across all DeFi protocols)
4️⃣ RWA TVL (Real-World Asset TVL)
Definition:
The total on-chain value of tokenized real-world assets (RWAs) — such as tokenized Treasury bills, bonds, real estate, private credit, or commodities — that are held within smart contracts.
It measures the amount of off-chain, tangible asset value represented and secured on-chain.
Formula:
RWA TVL = Σ (on-chain tokenized value of real-world assets)
5️⃣ Native Staking TVL
Definition:
The total value of a blockchain’s native tokens that are staked to secure the network, whether through validator nodes, staking contracts, or liquid staking derivatives.
It reflects the economic security and commitment of capital supporting the blockchain’s consensus mechanism.
Formula:
Native Staking TVL = (total native tokens staked) × (current token price)
Closing Thoughts
TVL isn’t one number — it’s a set of lenses showing where value actually lives on-chain.
Stablecoins show liquidity, DeFi shows activity, staking shows security, and RWAs show connection to the real world.
Once we define TVL clearly, we stop chasing numbers and start understanding how value flows through crypto.
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