Aave Surpasses 1T in Total Loans Amid Institutional Expansion Growth Trend

TLDR

• Aave exceeds 1T dollars in cumulative onchain lending volume
• Protocol secures 27.2B in total value locked across chains
• Aave generates 83.3M in fees over the past 30 days
• Horizon targets institutions borrowing stablecoins against real assets

Aave has surpassed 1 trillion dollars in cumulative lending volume, becoming the first DeFi protocol to reach this level. The milestone comes as the platform expands its services for institutional participants and traditional finance firms.

The protocol now secures 27.2 billion dollars in total value locked across multiple blockchains. Over the past 30 days, Aave generated 83.3 million dollars in fees, nearly four times more than its closest competitor.

Stani Kulechov, CEO of Aave Labs, stated on X, “A decade ago, DeFi and Aave didn’t exist. They were just ideas.” He added that Aave now serves as a backbone for onchain lending.

Institutional Expansion Drives Growth

Aave Labs launched Aave Horizon in August as a dedicated lending market on Ethereum. The product targets traditional finance firms and institutional investors.

Horizon allows participants to borrow stablecoins against tokenized real-world assets. Early participants include VanEck, WisdomTree, and Securitize. These firms use the platform to access decentralized liquidity within a regulated framework.

Kulechov said Aave aims to become the “largest, most efficient liquidity network in the world.” He noted that builders, banks, and fintech firms can integrate with the protocol.

On Feb. 15, Kulechov also referred to tokenizing assets such as solar infrastructure and robotics. He expects these asset classes to reach a combined value of 50 trillion dollars by 2050.

Market Position and Competitive Landscape

Aave remains the largest DeFi protocol by total value locked. It accounts for more than 28% of the DeFi market with 27.5 billion dollars across chains.

Morpho ranks as the second largest lending protocol with 5.8 billion dollars in total value locked. Other platforms such as JustLend, SparkLend, Maple, Kamin Lend, and Compound Finance each hold over 1 billion dollars.

Despite its market share, AAVE trades near multi-year lows. The token is priced around 122 dollars, giving it a 1.9 billion dollar fully diluted valuation. It reached 380 dollars in December 2024 and 660 dollars in 2021.

Aave was originally launched as ETHLend in 2017 before rebranding in 2018. The protocol enables users to deposit crypto assets and earn interest, while borrowers access liquidity using collateral.

DAO Funding Proposal Sparks Debate

The lending milestone comes during a governance dispute within the Aave community. Aave Labs has requested up to 42.5 million dollars in stablecoins and 75,000 AAVE tokens from the DAO.

In return, Aave Labs would route revenue from Aave-branded products to the DAO treasury. The proposal outlines a DAO-funded operating structure.

Some delegates have criticized Aave Labs’ product track record and funding requests. Marc Zeller of Aave-Chan Initiative published a report reviewing Labs’ performance and product launches.

BGD Labs announced plans to halt its work with the DAO. The decision followed discussions around the transition from Aave V3 to V4. Kulechov stated that once V4 matures, V3 parameters would gradually adjust to support migration.

The governance debate continues as tokenholders review the funding package. Meanwhile, Aave maintains its lead in lending volume and fee generation within the DeFi sector.

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