On February 26, it was announced that the decentralized lending protocol Aave’s total lending volume has officially surpassed $1 trillion, making it the first DeFi platform to reach this scale. Stani Kulechov, CEO of Aave Labs, confirmed this milestone on social media. Since its inception as ETHLend in 2017 and its rebranding in 2018, the protocol has continued to expand and is now the largest decentralized lending network by total value locked (TVL).
(Source: DefiLlama)
Data shows that Aave’s current TVL is approximately $27.2 billion, significantly ahead of competitors like Morpho, JustLend, SparkLend, and Compound Finance. Over the past 30 days, protocol fee income reached $83.3 million, nearly four times that of its closest rival, reflecting its dominant position in the on-chain lending market.
Institutional adoption has become a key growth factor. Earlier in 2026, Aave Labs launched Aave Horizon, targeting traditional financial institutions, supporting borrowing stablecoins against real-world assets as collateral. VanEck, WisdomTree, and Securitize were among the first to participate, indicating that DeFi infrastructure is extending into institutional capital. Kulechov also mentioned the potential of asset tokenization, projecting that by 2050, the scale of “wealth assets,” including energy and robotics, could reach hundreds of trillions of dollars, providing a long-term narrative for protocol expansion.
However, community governance has seen disagreements. A DAO proposal suggests providing up to $42.5 million in stablecoins and 75,000 AAVE tokens to Aave Labs in exchange for revenue backflow to the brand’s treasury. Discussions around financial control and decentralization principles are ongoing.
In terms of price performance, AAVE is currently around $117, down over 40% in the past year. Its market cap is about $1.8 billion, with a market cap-to-TVL ratio below 0.1. Some analysts believe this valuation level is attractive compared to historical cycles, but it still depends on protocol revenue growth and DeFi market activity. Whether AAVE can benefit from expanding lending volumes and institutionalization will be an important indicator to watch in the decentralized finance sector by 2026.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Gate Daily Report (April 21): Lido discloses the EarnETH exposure protection mechanism; DeFi losses exceed $600 million over the past three weeks
Bitcoin (BTC) sees a V-shaped rebound. As of April 21, it is temporarily around $76,028. U.S. President Trump says he is willing to hold direct talks with Iran’s top leadership. Lido said that the EarnETH treasury holds an exposure of about $21.6 million in rsETH, and the loss-protection mechanism is ready. DeFi has lost more than $600 million over the past three weeks, and the Kelp DAO incident has dragged DeFi TVL down to a one-year low.
MarketWhisper8h ago
Musk’s X introduces smart tags, driving $1 billion in global trading volume in 3 days
Musk’s social platform X rolled out a brand-new “Smart Cashtags” feature on the evening of April 15 (last Tuesday). On April 17, Nikita Bier, X’s product lead, announced that in just 3 days the feature drove about $1 billion in trading volume across global markets, based on aggregated data from X’s trading pilot program.
MarketWhisper04-20 06:32
Gate Daily Report (April 20): RAVE’s crash sparks warnings about altcoin manipulation; Charles Schwab Wealth Management considers entering prediction markets
Bitcoin gives back some of its recent gains, trading at $74,240. The RAVE token plunged 95%, prompting a warning about market manipulation. Charles Schwab and Castle Securities are considering entering prediction markets. U.S. stocks rose, and investors are watching the Middle East situation and the earnings season. Market liquidity is low, so a near-term pullback doesn’t need to be overly worrying.
MarketWhisper04-20 01:38
Gate Daily (April 17): Musk’s X Money hits a roadblock with New York crypto regulation; Yuga Labs appoints a new CEO
Bitcoin (BTC) is flat at $74,920. A ceasefire between Israel and Lebanon has taken effect, and Trump says Iran agreed not to develop nuclear weapons. Mizuho Bank warns that Musk’s X Money could be affected by New York’s crypto regulation. Yuga Labs replaces its CEO: Greg Solano becomes Chairman of the Board, and Michael Figge takes over. The market is broadly optimistic. A record-high Bitcoin buying wave in the past decade has emerged, suggesting the price may be moving toward $90,000.
MarketWhisper04-17 01:37
Solana and Ripple's 'XRP' Posts Highlight $100M Wrapped XRP Integration
Solana's recent post about "XRP" led to Ripple's reply, influencing XRP's price. This comes amid the launch of wrapped XRP on Solana through Hex Trust and LayerZero, attracting significant liquidity, highlighting an evolving collaboration in the crypto space.
GateNews04-16 11:51
