Aave Surges 18% in a Week: Ecosystem Boom and Stablecoin Supremacy Fuel Rally
Aave's native token rockets into double-digit gains as DeFi's lending titan flexes its muscles. Here's why traders are piling in—and why Wall Street's still scratching its head.
Stablecoins Steal the Show
Dai and USDC liquidity pools swell to record levels, turning Aave into the go-to yield machine for risk-averse crypto capital. Who needs banks when algorithms offer better rates before breakfast?
Developer Frenzy Pays Off
New smart contract deployments on the protocol spike 32% month-over-month. Turns out, when you build useful stuff, people actually use it—a novel concept in crypto.
The rally defies broader market lethargy, proving once again that in DeFi, fundamentals occasionally matter. Just don't tell the meme coin brigade.
Aave controls 5% of stablecoin lending
The project is also expanding its AHAB program with $1 million in stablecoins, in an effort to further boost stablecoin adoption. This MOVE comes as Aave’s stablecoin adoption is growing. According to crypto analyst Leon Waidmann, Aave now controls 5% of all stablecoin circulating supply in lending. This figure puts Aave ahead of all CeFi lenders combined, showcasing the growing appeal of decentralized lending.
Did you realize AAVE alone now holds 5% of stablecoins?
Yep, that's more than all CeFi lenders combined.
The shift isn't coming, it’s already here. pic.twitter.com/5in2WFpuZe
For this reason, whales are jumping on the token. Nansen metrics indicate significant whale accumulation, while data from Santiment shows a significant drop in exchange supply. The supply of Aave on exchanges dropped to 2.9 million, the lowest level since February 2021. This usually indicates that investors are moving tokens to self-custodial wallets, holding them for the long run.
The overall Aave network total value locked has spiked since the start of July, reaching $28.9 billion from $25 billion in June. Its TVL overtook last year’s December highs of $22 billion already in April of 2025. This consistent growth suggests rising adoption for this Ethereum (ETH) based DeFi lending protocol.
