Aave, a leading decentralized finance protocol, witnessed a remarkable year amid a host of significant milestones.
But the Aave (AAVE) protocol, which offers a non-custodial platform that allows users to both earn interest on their deposits and borrow assets, is eyeing an even “bigger” year in 2025.
The DeFi giant shared the outlook in its year-end overview on X, noting key milestones such as the introduction of Aave 2030 and V4. The proposal for V4 looks at Aave’s strategic evolution within DeFi with improved modularity, reduced governance overhead, capital efficiency and innovative liquidity rollout.
Aave wants to strengthen its position with these future implementations.
The aim is to build on a year in which Aave launched new markets and set records as the total value of the protocol reached a new record. Indeed, TVL peaked when net deposits reached $35 billion, while new markets included Aave DAO’s expansion into Scroll, BNB Chain, ZKSync Era, and Ether.fi. The new markets offered a combined value size of $2.55 billion.
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In 2025, more than six new chains will be added through the approval of Aave DAO management. Current proposals include targeted integrations with Sonic, Mantle, Linea, Spider Chain from Botanix Labs and Aptos.
GHO, the decentralized, overcollateralized stablecoin native to the Aave protocol, will also see notable momentum for further growth. The project has plans for cross-chain expansion after its debut on Arbitrum in 2024. GHO will go live on Base and Avalanche in the coming months.
The markets have seen the price of the Aave token rise to a high of $385 over the past twelve months – a peak last seen in September 2021. While AAVE has managed to undermine recent gains, the current price of it DeFi token up over 183% in the past twelve months. last year and down about 52% from its all-time high above $661 reached in May 2021.
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Disclosure: This article does not represent investment advice. The content and materials on this page are for educational purposes only.