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- AAVE controls 51% of DeFi lending TVL at $40B.
- Protocol revenue jumped 51% QoQ, hitting $28.3M.
- AAVE token regained $300, with $400 in sight.
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Decentralized finance lending protocol AAVE [AAVE] has cemented its dominance after its total value locked (TVL) doubled from $22 billion in December to an all-time high of $40 billion in late August. According to DeFiLlama, AAVE now commands roughly 51% of the $78.5 billion combined lending TVL, signaling its position as the market leader in DeFi lending.
This expansion highlights deeper liquidity for borrowers and lenders, enabling smoother execution and lower slippage. As a result, AAVE continues to draw significant capital inflows, reinforcing its network effects.
Protocol Revenue Hits New Highs
Beyond TVL growth, AAVE’s fundamentals are also shining. The protocol generated more than $3 million in fees within 24 hours—outpacing all other lending protocols combined. Quarterly results underline this strength, with network fees up 39% QoQ to $178 million and revenue surging 51% to $28.3 million, marking its strongest quarter since late 2021.
The increase in fees and revenue translates to healthier token economics, strengthening AAVE’s long-term position in the DeFi ecosystem.
AAVE Token Reclaims $300
On the market side, AAVE’s token has followed the protocol’s momentum. Closing August with a 20.96% gain, the token reclaimed the $300 mark for the first time since Q1. Analysts suggest that a push toward $400 could bring AAVE closer to its 2021 highs, signaling renewed strength in the asset.
The token’s utility is increasingly tied to protocol growth, making AAVE both a functional network cornerstone and an attractive investment candidate amid DeFi’s ongoing expansion.
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AAVE’s surging TVL, robust revenue growth, and strong token performance highlight its pivotal role in DeFi’s evolution. With half of the lending market under its control, the protocol is well-positioned to remain the go-to platform for borrowers and lenders, while the AAVE token’s fundamentals suggest further upside potential.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: DeFi TVL Surges Past $160B as Lido and AAVE Hit Record Highs
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
