- Aave passes $1 trillion in cumulative lending volume and leads DeFi credit markets
- Aave secures $27.2 billion in total value locked and earns $83.3 million in monthly fees.
- Tokenholders review $42.5 million funding plan as Aave debates DAO revenue control.
Aave has surpassed a cumulative lending volume of $1 trillion, being the first DeFi protocol to do so. The figure reflects years of steady borrowing activity across crypto markets. At the same time, Aave continues to lead rivals in both locked value and fee generation.
The protocol now secures $27.2 billion in total value locked. Over the past 30 days, it generated $83.3 million in fees. That amount stands nearly four times higher than its closest competitor. These numbers confirm Aave’s strong grip on decentralized lending.
Aave Crosses $1 Trillion in Lending
Aave began in 2017 under the name ETHLend. It later rebranded in 2018 and expanded its product suite. Since then, the platform has grown into one of the largest liquidity hubs in crypto.
Users deposit digital assets to earn interest. Meanwhile, borrowers access funds by posting crypto as collateral. This simple structure has attracted both retail and institutional participants. As activity increased, cumulative lending volume steadily climbed.
Making it to $1 trillion is an indication of the extent to which decentralized lending has gone. Aave currently handles volumes of loans that seemed inconceivable in crypto markets. The milestone also highlights broader growth in onchain finance.
Strong Fee Growth and Clear Market Lead
Aave leads other major DeFi lenders in total value locked. Competitors such as Morpho, JustLend, SparkLend, Maple, Kamin Lend and Compound Finance each hold over $1 billion. However, none approach Aave’s current scale.
In the last month alone, Aave generated $83.3 million in fees. Morpho, its closest rival, earned significantly less during the same period. This gap reflects deeper liquidity and higher user engagement on Aave.
Higher fees also support ongoing protocol upgrades. In addition, strong revenue strengthens the broader Aave ecosystem.
Institutional Push With Aave Horizon
In August, Aave Labs introduced Aave Horizon on Ethereum. The new market targets traditional finance firms and institutional investors. It allows them to borrow stablecoins against tokenized real-world assets.
VanEck, WisdomTree and Securitize joined as early participants. Their involvement shows rising interest from established financial players. The Horizon market aims to connect traditional capital with decentralized liquidity.
Aave leadership mentioned earlier this year that they intend to tokenize solar, battery storage and robotics. It is estimated that these assets can be valued up to $50 trillion by 2050. Tokenized lending could expand alongside that growth.
Governance Debate Over Funding
The milestone comes amid a governance discussion within the Aave community. Tokenholders are reviewing a proposal for Aave Labs. The package includes up to $42.5 million in stablecoins and 75,000 AAVE tokens.
Under the proposal, Aave Labs would direct all revenue from Aave-branded products to the DAO treasury. The plan would shift operations toward a DAO-funded structure. In December, Aave founder Kulechov faced scrutiny for buying $10 million of AAVE before a key DAO vote. However, community members continue to debate funding levels and revenue control.
