What is TVL and how can I earn with it? TVL (Total Value Lock | CryptoCoin Post

What is TVL and how can I earn with it?

TVL (Total Value Locked) is the total number of tokens that are in decentralized finance (DeFi) pools/farms.

It indicates the amount of tokens staked in various DeFi products such as liquidity mining, farming, allocation stacking, lending, etc. The higher the TVL - the more effective decentralized finance in a particular network (e.g. Ethereum, Binance Smart Chain, Arbitrum).

When TVL grows, investors are interested in making profit and the demand for tokens increases. The total TVL on all blockchains is currently ~ $50 billion. The Ethereum network is in first place with TVL of ~$29 billion, and Tron is in second place with TVL of ~$5 billion. You can track TVL changes at Defilama (https://defillama.com/).

Also, the higher the TVL of a particular token, the easier its price can be sold. A large number of tokens are not traded, so small volume is easier to manipulate. In the short term, this can lead to a sapley shock - a situation where there is very little supply and high demand, leading to an increase in price.