Total Value Secured (TVS) is the most important metric for measuring rollup adoption and success. Understanding TVS helps investors, developers, and users make informed decisions about Layer 2 ecosystems. This comprehensive guide explains what TVS is, how it's calculated, and why it matters for the rollup landscape.
Table of Contents
What is TVS (Total Value Secured)?
Total Value Secured (TVS) represents the total dollar value of all assets locked, bridged, or held within a specific rollup ecosystem. It's the primary metric used to measure the economic activity and adoption of Layer 2 scaling solutions.
TVS encompasses all forms of value within a rollup, including:
- Bridged assets from the main chain (ETH, USDC, USDT, etc.)
- Native tokens issued on the rollup
- Wrapped assets representing external tokens
- Protocol-owned liquidity in DeFi applications
- Staked assets in various protocols
Key Definition:
TVS measures the total economic value that users have entrusted to a rollup ecosystem, serving as a proxy for user confidence, adoption, and economic activity.
The Evolution of TVS as a Metric
Originally, the blockchain industry used Total Value Locked (TVL) to measure DeFi protocols. As Layer 2 solutions emerged, TVS evolved as a more comprehensive metric that better reflects the diverse ways value can exist within rollup ecosystems.
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View Live TVS Data →TVS vs TVL: Understanding the Key Differences
While TVS and TVL are related concepts, they serve different purposes and have distinct calculation methodologies:
| Aspect | TVS (Total Value Secured) | TVL (Total Value Locked) |
|---|---|---|
| Scope | Entire rollup ecosystem | Individual DeFi protocols |
| Assets Included | All assets on the rollup | Only locked/staked assets |
| Purpose | Measure rollup adoption | Measure protocol usage |
| Calculation | Sum of all asset values | Locked assets minus debt |
| Volatility | More stable, ecosystem-wide | Can fluctuate rapidly |
When to Use Each Metric:
- TVS: Evaluating rollup ecosystem health, comparing Layer 2 solutions, assessing market share
- TVL: Analyzing individual DeFi protocols, measuring lending/borrowing activity, tracking yield farming
How TVS is Calculated for Rollups
TVS calculation involves several complex steps to accurately represent the total value within a rollup ecosystem:
1. Asset Discovery and Classification
First, all assets within the rollup are identified and classified:
- Native assets: ETH, MATIC, OP, ARB, etc.
- Stablecoins: USDC, USDT, DAI, FRAX
- Wrapped tokens: WETH, WBTC, etc.
- Protocol tokens: UNI, AAVE, COMP
- LP tokens: Liquidity provider tokens
2. Real-Time Price Aggregation
Prices are sourced from multiple data providers to ensure accuracy:
- Major exchanges (Coinbase, Binance, Kraken)
- DEX aggregators (1inch, CoinGecko, CoinMarketCap)
- On-chain oracle networks (Chainlink, Band Protocol)
- Cross-validation to eliminate outliers
3. Double-Counting Prevention
Sophisticated algorithms prevent double-counting of assets across protocols:
- Identifying wrapped vs. underlying assets
- Excluding protocol-owned liquidity where appropriate
- Accounting for debt positions in lending protocols
- Handling cross-protocol composability
Access Detailed TVS Analytics via API
Integrate real-time TVS data, historical trends, and breakdown analytics into your applications with our comprehensive API.
Explore TVS API →Why TVS is Critical for Rollup Evaluation
TVS serves as a crucial indicator for multiple stakeholders in the rollup ecosystem:
For Investors and Funds
- Market dominance: Higher TVS indicates stronger market position
- Growth trajectory: TVS trends reveal ecosystem momentum
- Risk assessment: Diversified TVS suggests lower concentration risk
- Comparative analysis: Easy comparison between rollups
For Developers and Protocols
- Deployment decisions: Higher TVS rollups offer larger addressable markets
- Liquidity availability: More TVS typically means deeper liquidity
- User base size: TVS correlates with active user populations
- Integration opportunities: More protocols to potentially integrate with
For End Users
- Network effects: Higher TVS indicates more dApps and services
- Stability: Large TVS suggests more stable and reliable infrastructure
- Trading opportunities: More assets and deeper markets
- Security confidence: Higher stakes align with better security practices
Market Intelligence
TVS provides clear insights into rollup market dynamics and competitive positioning
Strategic Planning
Make informed decisions about where to deploy capital, applications, or development resources
Opportunity Identification
Spot emerging rollups with rapid TVS growth before they become mainstream
Risk Management
Assess concentration risks and evaluate the stability of different rollup ecosystems
Current TVS Rankings and Market Landscape
The rollup ecosystem has experienced explosive growth, with TVS distribution revealing clear market leaders and emerging contenders:
Tier 1 Rollups (>$1B TVS)
- Arbitrum One: Leading with sophisticated DeFi ecosystem and institutional adoption
- Optimism: Strong focus on public goods and developer-friendly environment
- Polygon zkEVM: Leveraging Polygon's ecosystem and ZK technology
- Base: Coinbase-backed rollup with rapid TVS growth
Tier 2 Rollups ($100M - $1B TVS)
- zkSync Era: Innovative ZK technology with growing ecosystem
- Starknet: Cairo-based ecosystem with unique advantages
- Linea: ConsenSys-developed with enterprise focus
- Scroll: EVM-equivalent ZK-rollup gaining traction
Emerging Rollups (<$100M TVS)
- Blast: Native yield-generating rollup
- Mantle: Modular architecture with BitDAO backing
- Metis: Decentralized sequencer focus
- Mode: DeFi-focused with revenue sharing
Live TVS Rankings Dashboard
Track real-time TVS changes, growth rates, and market share shifts across the entire rollup ecosystem with interactive charts and analytics.
Key Factors That Drive TVS Growth
Understanding what drives TVS growth helps predict rollup success and identify investment opportunities:
1. Infrastructure and Technology
- Transaction speed: Faster confirmations attract more users
- Cost efficiency: Lower fees increase adoption
- EVM compatibility: Easier migration increases developer adoption
- Security model: Stronger security attracts institutional capital
2. Ecosystem Development
- DeFi protocols: AMMs, lending platforms, yield farms
- NFT marketplaces: Gaming, collectibles, digital art
- Gaming applications: Play-to-earn and blockchain games
- Social applications: Decentralized social media platforms
3. Strategic Partnerships
- Exchange integrations: Direct deposits/withdrawals
- Wallet support: MetaMask, Trust Wallet integration
- Institutional partnerships: Traditional finance onramps
- Developer incentives: Grants, hackathons, acceleration programs
4. Market Dynamics
- Token incentives: Liquidity mining and airdrops
- Yield opportunities: Attractive returns drive capital flow
- Network effects: More users attract more users
- Regulatory clarity: Clear regulations reduce uncertainty
Deep Dive into TVS Analytics
Access comprehensive documentation, API endpoints, and integration guides to build your own TVS tracking solutions.
View Documentation →Understanding TVS Limitations and Considerations
While TVS is a valuable metric, it's important to understand its limitations for comprehensive rollup analysis:
Potential Issues with TVS
Common Limitations:
- Price volatility: TVS can fluctuate significantly due to asset price changes
- Token inflation: New token issuance can artificially inflate TVS
- Wash trading: Fake volumes can temporarily boost TVS figures
- Double counting: Complex DeFi interactions may lead to inflated numbers
- Concentration risk: A few large holders can skew TVS significantly
Complementary Metrics to Consider
- Active addresses: Number of unique daily/monthly active users
- Transaction count: Daily transaction volume and growth
- Developer activity: GitHub commits, protocol deployments
- Gas usage: Network utilization and demand indicators
- Bridge activity: Inflow and outflow patterns
Best Practices for TVS Analysis
- Time-weighted analysis: Look at TVS trends over extended periods
- Asset composition: Understand what assets make up the TVS
- Growth rates: Focus on percentage growth, not just absolute numbers
- Comparative context: Always compare TVS relative to other metrics
- Market conditions: Consider broader crypto market trends
How to Effectively Monitor TVS Data
Successful TVS monitoring requires the right tools, methodologies, and analytical frameworks:
Essential Monitoring Features
- Real-time updates: Live TVS tracking across all major rollups
- Historical data: Long-term trends and growth patterns
- Asset breakdowns: Detailed composition of TVS by asset type
- Comparative analytics: Side-by-side rollup comparisons
- Alert systems: Notifications for significant TVS changes
Professional Analytics Tools
- Interactive dashboards: Visual representations of TVS data
- API access: Programmatic data integration
- Custom reports: Tailored analysis for specific needs
- Data exports: CSV/JSON downloads for further analysis
- Webhook integrations: Real-time data streaming
For Traders
Use TVS momentum indicators to identify emerging opportunities and market shifts
For Developers
Monitor TVS to choose optimal deployment targets and assess ecosystem health
For Researchers
Analyze TVS patterns to understand rollup adoption cycles and market dynamics
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Conclusion
Total Value Secured (TVS) has emerged as the definitive metric for evaluating rollup success and adoption. By understanding what TVS represents, how it's calculated, and what factors drive its growth, stakeholders can make better informed decisions about the rapidly evolving Layer 2 landscape.
As the rollup ecosystem continues to mature, TVS will remain a critical indicator of economic activity, user confidence, and long-term viability. However, it's essential to use TVS in conjunction with other metrics to get a complete picture of rollup health and potential.
Whether you're an investor evaluating opportunities, a developer choosing where to build, or a user deciding which rollups to use, understanding TVS dynamics will give you a significant advantage in navigating the Layer 2 ecosystem.
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