Aave Dominates DeFi Lending with Record $30.5B in Active Loans

Aave has solidified its position as the leading decentralized finance (DeFi) lending protocol, with active loans hitting a record $30.5 billion on Sept. 18. This figure represents a commanding 65% share of the $46.72 billion total active loans across all DeFi platforms. Token Terminal data underscores Aave's dominance, with its nearest competitor, Morpho, holding less than $5 billion in active loans.

The protocol's total value locked (TVL) stands at $42 billion, making it the largest DeFi protocol by this metric, according to DefiLlama. If Aave operated as a traditional U.S. commercial bank, its deposit base WOULD rank it 53rd—placing it among the top 2.5% of banks nationwide based on June 30 regulatory filings.

Aave generated $24.6 million in fees over the past week, ranking fifth among all crypto protocols when including centralized stablecoin issuers like Tether and Circle. Among purely decentralized platforms, it trails only Pump.fun and Uniswap in fee generation. The protocol's utility extends beyond basic lending, serving as a liquidity source for Leveraged trading and yield-seeking investors.