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DeFi TVL Measures Asset Values, Not Net Deposits or Trading Activity

TokenPost·October 16, 2026·1 min read
DeFi TVL Measures Asset Values, Not Net Deposits or Trading Activity

DeFi TVL measures the total value of assets locked in protocols, but it does not reflect net deposits or trading activity. Token price changes can alter TVL without any balance changes. Methodologies vary regarding asset inclusion and double-counting, affecting comparability across platforms.

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