Aave’s loan volume triples YTD, currently exceeding $10B

Leading Decentralized Finance (DeFi) protocol Aave has hit an impressive milestone by hitting $10 billion in active loans.

This figure represents a 300% increase in loan activity since the beginning of the year, when it stood at $3.4 billion.

DeFi renaissance

Data from the on-chain DeFi tracking platform Token Terminal shows that active loans on the platform have increased by 16.4% to $10.04 billion over the past 30 days. At the same time, the total value locked (TVL) of the crypto stored on the protocol increased by 26.7% to $15.96 billion.

Looking at other metrics, fees rose 48% to $40.34 million, year-over-year to $490 million, a 33% improvement over the past 30 days. This increased monthly revenue by 82% to $9.36 million. Likewise, the annual revenue forecast now stands at $113.84 million. This increase boosted Aave's revenue, which is up 1,628% in the last 30 days.

Additionally, there are currently around 173,000 token holders, a slight increase of 0.9% from last month. The figure has increased by more than 40% to more than 6,200 users daily and nearly 30,000 users per week during that period.

The protocol's explosive growth is a reflection of the broader “renaissance” of DeFi, as explained by Ave founder Stany Kulekov.

Aave's expanding ecosystem

Beyond its core lending activities, Ave is looking to explore new frontiers, including a Bitcoin layer-2 network designed by Botanix Labs that can be deployed on Spiderchain. A potential merger would combine Bitcoin's deep liquidity with Aave's lending ecosystem, allowing Ethereum-based applications to connect to BTC assets.

According to reports, the Ave-Chain Initiative (ACI) is currently seeking community feedback on the proposal. If successful, it will further strengthen the platform's leadership in DeFi.

In October, President-elect Donald Trump presented Eve with a proposal to create a prototype for Diffie's fledgling project, World Freedom Finance (WLF). The proposal contains a 20% protocol fee as well as a 7% supply of the WLF governance token WMFI.

In the same month, Ave Coinbase's wrapped Bitcoin offering, cbBTC, saw an increase in deposits, with 56% of the cryptocurrency sitting there.

However, despite the platform's recent victory, the native AAVE token is down 3.4% from 24 hours ago. Moreover, in seven days, it has lost more than 12% of its value, showing a 4.90% higher performance compared to the global crypto market.

However, in the last three months, AAVE has increased by 31.7%, and has also gained a high of 81% in the last six months.