Aave’s loan volume has tripled in the past year, now exceeding $10 million

Leading decentralized finance (DeFi) protocol Aave has hit a notable milestone, reaching $10 billion in active lending.

It marks a 300% increase in lending activity since the beginning of the year, when the figure stood at $3.4 billion.

DeFi Renaissance

Data from the DeFi tracking platform on the Token Terminal chain shows that in the last 30 days, active loans on the platform increased by 16.4% to reach $10.04 billion. At the same time, its Total Value Locked (TVL), which is the total value of crypto deposited into the protocol, increased by 26.7% to $15.96 billion.

Looking at other metrics, fees are up 48% to $40.34 million, annualized to more than $490 million, which is a 33% improvement over the last 30 days. This has increased monthly revenue by 82% to $9.36 million. Likewise, annualized revenue projections now stand at $113.84 million. This increase has boosted Aave’s earnings, which are up 1,628% over the past 30 days.

In addition, there are currently close to 173,000 token holders, a slight increase of 0.9% compared to the previous month. The figure has been boosted by a more than 40% increase in daily active users in this period, exceeding 6,200 a day and nearly 30,000 a week.

As Aave founder Stani Kulechov pointed out, the protocol’s explosive growth is a reflection of the broader “renaissance” of DeFi.

Aave’s expanding ecosystem

Beyond its core lending activities, Aave is looking to explore new frontiers, including a possible deployment on Spiderchain, a Bitcoin Layer 2 network designed by Botanix Labs. The potential integration would combine Bitcoin’s deep liquidity with Aave’s lending ecosystem, allowing Ethereum-based applications to interact with BTC assets.

The Aave-Chain Initiative (ACI) is reportedly currently seeking feedback from its community on the proposal. If successful, it could further solidify the platform’s leadership within DeFi.

In October, President-elect Donald Trump’s fledgling DeFi project, World Liberty Financial (WLF), issued a proposal to Aave to establish an instance on the platform. The proposal contained an offer of 20% of all protocol fees, as well as 7% of the supply of WLF’s governance token, WLFI.

In the same month, Aave saw an increase in deposits of Coinbase’s wrapped Bitcoin offering, cbBTC, with 56% of the cryptocurrency hosted there.

However, despite the platform’s latest triumph, its native AAVE token is down 3.4% from its level 24 hours ago. Moreover, over seven days, it lost more than 12% of its value, reflecting a sharp underperformance against the global crypto market, which has risen by 4.90%.

However, over the past three months, AAVE has increased by 31.7% and has also gained 81% over the past six months.

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