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
Ondo Finance Issues Tokenized Securities in IBIT and GLXY
The essay discusses the recent entry of large companies and ETFs into the tokenized securities market, highlighting growth driven by regulatory support and increasing institutional demand, with Ondo Global Markets managing over 250 tokenized instruments valued at nearly $2.6 billion.
CryptoBreaking1h ago
Gemini Faces Class-Action Suit Over Prediction Market Pivot, Plummeting Stock Price
Gemini faces a class action lawsuit from shareholders alleging that the company misled investors about its business viability and concealed its shift to prediction markets, contributing to a significant decline in stock value.
Decrypt1h ago
Today's Top 100 Token Market Cap Gainers and Losers: TAO up 13.94% leading gains, RIVER down 10.80% leading losses
On March 20, the performance of the top 100 cryptocurrency tokens by market cap: Bittensor (TAO) rose 13.94%; River (RIVER) fell 10.80%. Other tokens that gained include Kite, FET, Aptos, and SHIB, while tokens that declined include MemeCore, Kaspa, Worldcoin, and XDC Network.
GateNews2h ago
Senator Cramer Urges CLARITY Act Markup Before Easter
Senator Kevin Cramer urged Congress to expedite the CLARITY Act before Easter to prevent legislative delays affecting crypto regulation. He discussed banking concerns and stablecoin reward structures, emphasizing the need for swift action to maintain U.S. leadership in digital assets.
CryptoFrontNews2h ago
BTC falls below 70000 USDT, intraday decline of 0.09%
Gate News, on March 20th, according to market data, Bitcoin broke below the 70,000 USDT level, currently trading at 69,991.06 USDT, with a daily decline of 0.09%.
GateNews5h ago
