{"id":26423,"date":"2025-05-12T23:01:59","date_gmt":"2025-05-12T23:01:59","guid":{"rendered":"https:\/\/dogewisperer.com\/defi-lender-aave-reaches-40b-in-value-locked-onchain\/"},"modified":"2025-05-12T23:01:59","modified_gmt":"2025-05-12T23:01:59","slug":"defi-lender-aave-reaches-40b-in-value-locked-onchain","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=26423","title":{"rendered":"DeFi lender Aave reaches $40B in value locked onchain"},"content":{"rendered":"
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\"DeFi<\/p>\n

Aave, a decentralized finance (DeFi) protocol, has reached a new record of funds\u00a0onchain, according to data from DefiLlama.<\/p>\n

In an X post<\/a>, Aave said it topped $40.3 billion in total value locked (TVL) on May 12. Onchain data reveals<\/a> that Aave v3, the latest version of the protocol, has approximately $40 billion in TVL. <\/p>\n

Aave is a DeFi lending protocol that lets users borrow cryptocurrency by depositing other types of cryptocurrency as collateral. Meanwhile, lenders earn yield from borrowers.\u00a0<\/p>\n

\u201cWith these milestones, Aave is proving its dominance in the Lending Space,\u201d DeFi analyst Jonaso said in a May 12 X post<\/a>. TVL represents the total value of cryptocurrency deposited into a protocol\u2019s smart contracts.\u00a0<\/p>\n

\"DeFi
Aave v3\u2019s TVL over time. Source: <\/em>DeFiLlama<\/em><\/a><\/figcaption><\/figure>\n

Related: AAVE soars 13% as buyback proposal passes among tokenholders<\/strong><\/em><\/p>\n

Breaking all-time highs<\/h2>\n

In December, Aave achieved an all-time high TVL largely because the price of Ether (ETH<\/a>) rose roughly 60% from the prior month. Ether and its staking derivatives make up nearly half of Aave\u2019s TVL, according to data<\/a> from DefiLlama.\u00a0<\/p>\n

This time around, Aave\u2019s all-time high TVL is also driven by inflows of deposits by users.\u00a0<\/p>\n

In Ether-denominated terms, Aave\u2019s TVL rose from around 6 million ETH at the start of 2025 to nearly 10 million ETH on May 12. Measuring TVL in ETH accounts for the impact of fluctuating cryptocurrency prices. <\/p>\n

\"Cryptocurrencies,
Aave says its net deposits broke $40 billion this week. Source: <\/em>Aave<\/em><\/a><\/figcaption><\/figure>\n

Before US President Donald Trump prevailed in the November election, Ether traded at less than $2,500. It peaked at almost $4,000 the following month, according to data from Google Finance.\u00a0<\/p>\n

In the past month, Ether has also clocked substantial gains, rising from around $1,500 per Ether 30 days ago to roughly $2,500 as of May 12, according to data from Google Finance.\u00a0<\/p>\n

The price of Aave\u2019s native AAVE (AAVE<\/a>) token has risen approximately 25% in the past seven days, reflecting a buoyant crypto market and ongoing TVL inflows, according to data<\/a> from CoinMarketCap.<\/p>\n

Magazine:\u00a0<\/strong><\/em>Adam Back says Bitcoin price cycle \u201910x bigger\u2019 but will still decisively break above $100K<\/strong><\/em><\/a><\/p>\n