Aave Surpasses $50 Billion in Net Deposits: A Significant Milestone for DeFi

Aave has become the first DeFi lending protocol to surpass $50 billion in net deposits, as highlighted by the project’s founder, Stani Kulechov.

“This is a significant milestone for the entire DeFi ecosystem. We are aiming for trillions,” he stated.

Kulechov also noted that Aave’s infrastructure is increasingly attracting TradFi companies. In March, the project team launched the Horizon initiative to integrate Real World Assets (RWA) into DeFi. He mentioned that institutional interest is fueling the protocol’s growth.

Another contributing factor is the historical correlation between lending and market phases. In recent days, Bitcoin has set several price records, which has positively impacted the broader cryptocurrency market.

According to DeFi Llama, at the time of writing, Aave’s total value locked (TVL) is also at an all-time high, standing at $29.8 billion. This marks a 45% increase since the beginning of the year.

Alongside the ecosystem, its native token, AAVE, is on the rise as well. As per CoinGecko, its price surged by 6.8% in the past 24 hours, trading above $320 at the moment.

Additionally, Santiment has announced the beginning of an altcoin season; however, analysts have cautioned about several concerning signals.