📊 DEFI CONCEPT: TVL ≠ CAPITAL INFLOW
Total Value Locked (TVL) measures the value of assets held in a protocol’s smart contracts.
But a rising TVL does NOT automatically mean:
• 👥 More users are arriving
• 💰 Fresh capital is entering
• 📈 Trading activity is increasing
• 🟢 The protocol is becoming safer
TVL can change because of token prices, deposits, withdrawals, asset movements or methodology.
QUICK CHECK:
☑️ Check TVL trend
☑️ Check stablecoin supply
☑️ Check active users
☑️ Check volume and fees
☑️ Check whether TVL growth comes from new deposits or asset-price changes
Key lesson: TVL shows value locked—not the complete picture of DeFi activity.
October 4, 2026 62
