Total value locked (TVL) is a commonly used metric in decentralized finance (DeFi) to gauge the popularity, adoption, and overall well-being of DeFi projects. David Silverman, SVP of Strategic Product Initiatives at Polygon Labs, suggests that while TVL grabs attention, it might not present a comprehensive view of a chain's actual value.

In an interview with BeInCrypto, Silverman discussed the limitations of TVL and introduced the concept of Chain-Aligned TVL (CAT) as a potentially more insightful measure for the crypto landscape.

TVL is considered by Silverman as a tool for generating headlines and offering a general overview of the assets held within a DeFi platform or chain, without delving into the specifics. While Ethereum dominates in TVL value, there are concerns regarding the accuracy and relevance of this metric.

Silverman highlighted the need for a metric like CAT that focuses on the active utilization of assets within a chain rather than just their presence. He emphasized the importance of assets contributing to the ecosystem's growth and value, rather than idly sitting in wallets.

Chain-Aligned TVL aims to reflect the total value of assets that actively support and strengthen the chain they are on, whether directly held or within aligned protocols. The metric could help users identify high-yielding opportunities and encourage the development of more effective and user-friendly applications.

By prioritizing projects with higher chain-aligned TVLs, chains can promote applications that benefit their ecosystems. Silverman suggested that this approach could lead to better user experiences, improved interest rates, and enhanced engagement with features like games and NFTs.

While transitioning to metrics like CAT may pose challenges due to the dominance of TVL, the industry's evolution and the growing need for precise evaluations of chain health could drive acceptance of more meaningful measures like CAT in the future.