Total Value Locked (TVL)

Total value locked is a metric that’s used to gauge how well the yielding and DeFi markets are doing overall. On many services, the entire value locked can be tracked.

The supply, the maximum supply, and the current price are the three primary variables taken into account while calculating and examining the market cap TVL ratio for decentralized financial services.

You must multiply the current price by the circulating supply to obtain the market capitalization at this time. You would need to divide that market cap amount by the service’s TVL in order to arrive at the TVL ratio.