Description
Definition. The total USD value locked inside the Ethereum side of bridge smart contracts, broken out per destination blockchain. Locked tokens are unavailable on Ethereum and available on the target chain.
Technical. TVL is computed daily by multiplying the number of tokens locked in each bridge smart contract by the latest daily price for each token. Bridges are protocols that transfer digital assets from one blockchain to another. When an asset leaves Ethereum, it is deposited and locked into a bridge smart contract, and when it returns to Ethereum it is withdrawn and released. This metric only includes bridge contracts on the Ethereum side, covering deposits into both L1 and L2 blockchains. Each bridge represents a single destination chain, except those labeled multichain, which fan out across multiple chains.
Interpretation. A rising series means value is flowing out of Ethereum into the target chain, and a falling series means value is flowing back into Ethereum.