Aave Crosses $40B in Deposits as DeFi Lending Roars Back

Aave, one of the leading protocols in decentralized finance, has just reached a new milestone, with over $40 billion now deposited across its lending markets.

The achievement, fueled by rising crypto prices and renewed user activity, signals a strong rebound for the DeFi lending sector.

According to DeFiLlama, Aave v3—the protocol’s latest version—holds the bulk of the value, reflecting a steady influx of assets throughout 2025. Analysts note that this increase isn’t just a byproduct of crypto market gains, but also the result of significant net inflows into the platform, especially from Ether and its derivatives.

Measured in ETH terms, Aave’s holdings have surged from around 6 million ETH at the start of the year to nearly 10 million ETH, showcasing real growth in onchain participation. That metric helps cut through price noise and points to sustained user demand for yield-generating strategies.

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The protocol’s rise coincides with Ether’s strong recovery. In just one month, ETH has climbed from roughly $1,500 to around $2,500. Meanwhile, AAVE—the platform’s governance token—has jumped 25% in the past seven days, boosted by positive sentiment and an approved token buyback initiative.

For many in the DeFi community, this moment confirms Aave’s position at the top of the lending space. “It’s not just about TVL in dollars—it’s about long-term users trusting the protocol with billions in real assets,” noted one DeFi analyst.

As Ethereum’s momentum builds and lending strategies evolve, Aave appears well-positioned to capitalize on the renewed appetite for decentralized borrowing and lending.

Alexander Stefanov