According to The Defiant, the total value locked (TVL) in the decentralized lending protocol Aave briefly dipped over the weekend but surpassed $24 billion again yesterday, achieving a significant milestone: Aave’s TVL accounts for 20% of the entire decentralized finance (DeFi) ecosystem.
According to data from DeFiLlama, Aave’s TVL reached a historical high this month, peaking at $25.22 billion last week, making it the largest DeFi protocol by TVL. In second place is the liquidity staking protocol Lido, which currently has a TVL of approximately $23 billion.
Aave total value locked changes, source: DeFiLlama
The protocol’s native token AAVE has also risen alongside the increase in TVL, trading at $256 at the time of publication, marking a 78% increase over the past month, with a market capitalization nearing $4 billion.
Growth Rate Surpassing the Overall DeFi Market
Aave’s growth is linked to the overall DeFi market’s boost from the significant rebound in the price of Ether (ETH), with the sustained growth in the lending sector being one of the main reasons.
The crypto analysis platform SeaLaunch points out that Aave’s share of the total TVL in the DeFi ecosystem has nearly doubled since January 2024, rising from 11% to 20%. During the same period, the total TVL in DeFi has doubled from $56 billion to $115 billion, while Aave’s TVL has grown from $6.6 billion to $23.8 billion, an increase of 3.6 times.
This outstanding performance highlights that, amid the slow recovery of the DeFi market since the beginning of this year, the demand for decentralized lending is rapidly increasing. Data from DeFiLlama indicates that the total TVL in the lending sector has reached $54.5 billion, expected to break the previous high of $55.4 billion set at the end of last year soon. Additionally, the TVL of the top five lending protocols has seen at least 20% growth in the past month.
At the same time, Aave is also actively expanding its footprint beyond Ethereum. On Monday, the protocol announced that its V3 version has been successfully deployed on the Aptos blockchain.
