The lending protocol Aave now controls deposits that would place it among the top 60 commercial banks in the United States if it were chartered like a traditional institution. With $42 billion in total value locked (TVL), its balance sheet would outsize thousands of federally insured lenders.

A Revenue Powerhouse

Size isn’t Aave’s only headline. Fee generation has accelerated, with the protocol pulling in nearly $25 million in a single week. That figure puts it behind only the largest centralized stablecoin issuers, Tether and Circle, and makes Aave one of the most lucrative decentralized applications globally. Within DeFi, only Pump.fun and Uniswap surpass its revenues.

Aave’s loan book has grown to over $30.5 billion, giving it a commanding 65% share of all active loans across decentralized platforms. Its nearest competitor, Morpho, has less than one-sixth of that total, highlighting the extent of Aave’s lead. The platform’s scale effectively makes it the core liquidity provider of DeFi lending.

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Why Users Choose Aave

Traders often turn to Aave to borrow against existing crypto holdings and gain leverage without selling their assets. Others see it as a safer way to put dormant funds to work. With consistently higher yields than conventional banks, the protocol offers savers an attractive alternative that doesn’t require intermediaries.

Consider stablecoin deposits: USDC on Base currently earns an annualized 5.76%, compared to the 0.39% average return on U.S. savings accounts. Across Ethereum and Avalanche networks, yields hover around 5% for both USDC and USDT, while Linea’s USDT pays nearly 4%. For many, those differences justify the risks of decentralized markets.

The Bigger Picture

The growth of Aave highlights a shift in investor behavior. Rather than treating crypto as purely speculative, users are increasingly adopting DeFi protocols for functions that mirror – and in some ways surpass – traditional financial services. Aave’s combination of scale, revenue, and yield advantage suggests it has become less an “experiment” and more a cornerstone of the decentralized economy.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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