Liquidity Locked in DeFi serves as a key indicator of market participation and confidence in decentralized protocols. A growing liquidity lock suggests increasing investor engagement and protocol utility, while a decline may signal market uncertainty or capital flight. High liquidity levels improve market efficiency, reducing slippage and enhancing trade execution. Investors use this metric to assess DeFi platforms' sustainability and compare growth rates across different protocols. Monitoring liquidity trends can help traders adjust strategies in response to shifting DeFi dynamics.