AAVE TVL has surged to an all-time high near $40 billion, representing roughly 51% of DeFi lending TVL and generating $3M+ in daily fees, underlining AAVE’s dominant liquidity position and growing token utility.
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AAVE controls ~51% of DeFi lending TVL, enabling deeper liquidity and lower slippage.
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AAVE posted $3M+ in protocol fees over 24 hours, outpacing other lending protocols combined.
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Network fees rose 39% QoQ to $178M and revenue jumped 51% to $28.3M, marking the protocol’s strongest quarter.
AAVE TVL hits ~$40B, commanding 51% of lending TVL; high fees and rising revenue underscore token utility—read the full analysis and takeaways.
What is AAVE TVL and why does it matter?
AAVE TVL is the total value locked in the AAVE protocol, currently near $40 billion, and it matters because TVL measures liquidity depth, fee generation potential, and a protocol’s real-world usage. Higher TVL reduces slippage for users and increases protocol fee revenue, supporting token economics.
How dominant is AAVE in DeFi lending?
AAVE accounts for roughly 51% of combined lending TVL, with total lending TVL at about $78.5 billion. That dominance gives AAVE substantial market share advantages: better liquidity, improved borrowing/lending spreads, and stronger network effects that reinforce user and capital inflows. Source: DeFiLlama (data reported as plain text).
Why this matters: deeper liquidity enables larger trades and lending positions with lower execution risk. Higher on-chain activity drives protocol fees and increases long-term token utility, a key driver for investors and active users.
Frequently Asked Questions
How has AAVE’s TVL trended recently?
AAVE’s TVL doubled from December levels and hit near $40 billion in late August, reflecting substantial capital inflows and growing protocol adoption. This surge underscores stronger market confidence in AAVE’s liquidity provisioning and lending markets. Source: DeFiLlama (reported as plain text).
What do fee and revenue numbers reveal about AAVE?
Network fees jumped 39% QoQ to $178 million and revenue rose 51% to $28.3 million, indicating improved monetization. Daily protocol fees exceeded $3 million, showing robust short-term cash generation and supporting token utility. Source: Token Terminal (reported as plain text).
Key Takeaways
- AAVE dominance: AAVE controls ~51% of DeFi lending TVL, giving it a market leadership position.
- Fee growth: $3M+ daily fees and strong quarterly revenue indicate rising protocol monetization.
- Token implications: Higher TVL and fees support AAVE token utility and strengthen long-term value drivers.
Conclusion
AAVE’s TVL surge to roughly $40 billion and its 51% share of lending TVL, combined with strong fee and revenue growth, cement the protocol’s leadership role in DeFi. These fundamentals—backed by on-chain data from DeFiLlama and financial metrics reported by Token Terminal—support the narrative of growing token utility and long-term resilience. COINOTAG will continue monitoring on-chain metrics and revenue trends for updated analysis and trade-ready insights.
On-chain activity for AAVE [AAVE] underscores its DeFi expansion.
Since breaking $22 billion in December, AAVE’s TVL has doubled, hitting a $40 billion all-time high in late August. For a lending protocol, this TVL surge signals strong capital inflows and solid network traction.
In fact, across all lending protocols, combined TVL stands at $78.5 billion, meaning AAVE accounts for roughly 51% of the market, highlighting its dominance in the DeFi lending space.
Source: DeFiLlama
Why does this matter? Deeper TVL means more liquidity for borrowers and lenders, smoother execution, and lower slippage. That translates to higher protocol fees, boosting token economics.
Backing this up, AAVE pulled in $3 million+ in fees over the last 24 hours, outpacing all other lending protocols combined.
All of this highlights AAVE’s strong network effects. On a macro level, it cements AAVE as the go-to lending protocol as modern finance continues shifting toward DeFi.
AAVE’s fundamentals fuel token’s long-term upside
AAVE’s protocol growth continues to support token utility and demand.
Amid broader risk-off flows, AAVE closed August +20.96% from its $260 base, reclaiming $300 for the first time since Q1. A push past $400 would put the token back near 2021 levels, signaling renewed strength.
On the numbers side, things are looking solid. Network fees jumped 39% QoQ to $178 million and revenue popped 51% to $28.3 million, making this AAVE’s fattest quarter since Q4.
Source: Token Terminal
In short, the token’s utility is showing through in the numbers. Its strong fundamentals are moving in tandem with price action, highlighting the protocol’s long-term health and resilience.
Moreover, as both a protocol and a token, AAVE remains at the forefront of DeFi’s transition, making its $300 price point an attractive entry for potential upside.
COINOTAG — Published: 2025-09-01 — Updated: 2025-09-01
