TVL change 7d
7-day crypto TVL variation, short-term liquidity
The 7-day variation in TVL (Total Value Locked) is an indicator of decentralized finance, demonstrating investor confidence in this protocol.
TVL measures how much capital is locked into a protocol (staking, lending, liquidity pools, etc.).
A recent increase in TVL may indicate that new investors are putting their funds into the protocol, attracted by a return or a newly announced feature. This is often a positive sign, but it is important to check that the increase is not artificial (e.g., airdrop farming attracting “passing” capital).
A recent decrease in TVL signals a withdrawal of liquidity. Possible causes include:
- a decline in confidence in the protocol (hack, security breach, loss of attractiveness compared to a competitor)
- capital rotation towards another more profitable opportunity
- simple volatility linked to a fall in the price of deposited tokens.
If TVL falls sharply while the token price has not yet fallen, this may be an early warning sign.
Conversely, if the TVL rises rapidly and the token price has not yet reacted (or has reacted only slightly), this may indicate a buying opportunity.
Source: defillama.com. Clicking on the figure takes you to the chart on DefiLlama.