TOP Lending Protocol Aave has surpassed a broader decentralized financing growth (Defi) growth over the past three months, as a result of which the market share is extracted as the capital continues to flow into important protocols.
The total value of the decentralized loan protocol increased by the end of the quarter of $ 16.7 billion in April to more than $ 25.4 billion to more than $ 25.4 billion, an increase of more than 52% of $ 16.7 billion, according to Defillama data. For comparison: the total Defi TVL grew by 26%, from $ 92 billion to $ 116 billion, in the same period.
Aave’s share in the Defi -credit market has also grown to 48%, with the sector, which has surpassed $ 58 billion in TVL. Moreover, with $ 28 billion in TVL accounts for almost 23% of the TVL throughout Defi, the largest of each protocol.
Aave vs Defi TVL: Source: Avara’s head marketing on X
In the meantime, a recent report from DWF Laboratories showed that Aave’s share in the total deposits and loans in 2025 has grown from around 40% to around 60% ($ 16.5 billion).
Earlier this week, Aave also reported in a post on X that the total cumulative loans reached $ 775 billion. In response, Stani Kulechov, the founder and CEO of Aave, said the “next stop $ 1 trillion”.
“As one of the more established names in the credit space, Aave has solidified its position as the market leader,” said the DWF Labs report. “Compared to the Defi -Summer from 2021 and 2022, Aave has even increased its market share and dominance, despite a significant increase in competition.”
These milestones emphasize the rapid growth of Aave and reflect a wider shift in Defi, where users are increasingly going to Layer 2 (L2) networks for lower costs and faster transactions.
Mike Cahill, CEO of Douro Labs, a leading contribution to the Pyth Network, told The Defiant that the steady growth of Aave points to a broader trend in web3: rising investor question to more established and reliable Defi protocols.
“In a market that is still recovering from the risk-off sentiment of 2022–23, protocols such as Aave benefit from a ‘flight to quality’ dynamics in which users give priority to the liquidity depth, cross-covering and institutional integrations,” explained Cahill, adding: adding: adding: adding: adding: adding:
“The launch of GHO has also helped to restore the interest and a Native Stablecoin tool offers on top of the Aave credit engine.”
Gho was launched in 2023 and is the native Stablecoin of Aave who linked 1: 1 to the US dollar. It currently has a market capitalization of almost $ 312 million, per Coeningecko.
Evolving technology
The DWF LABS report further points to Aave’s evolving technology as an important reason for its continuous growth. The upcoming V4 -upgrade, for example, will use a new “Hub and Spaak” design to bring the liquidity together and make it easier for developers to build.
The upgrade is expected to significantly stimulate capital efficiency and modularity. It also builds on the Horizon initiative of Aave, which is aimed at the Real-World assets (RWAS) in the chain of institutional quality and make them useful as collateral in Defi-credit markets.
A few months ago, Aave revealed that, apart from new initiatives such as Aave V4 and Horizon by Aave Labs, “much more to come”.
The price of the Native Governance of Aave, Aave, also performs well, in addition to the growth of the protocol, more than 240% in the past year.
In a recent Defi Daily newsletter, the Defiant noted that although Aave clearly dominates Defi, Challenger protocols such as Spark, Morpho, Venus, Sonne Finance, Maple and Sadyless start to help market share.
