What is the significance of Total Value Locked (TVL) in DeFi platforms like Aave?

What is the real significance of Total Value Locked (TVL) in DeFi platforms such as Aave? Is it merely a marketing metric, or does it genuinely reflect the platform's health and user trust? How should investors interpret TVL when assessing the viability and potential risks of these decentralized finance ecosystems?

#Crypto FAQ

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