Aave now holds 20% of the total DeFi TVL, surpassing $24 billion, making it the largest protocol in the sector. Its token AAVE has surged 90% in a month to $262. DeFi’s total TVL rebounded to $151 billion in May. Aave’s V3 was recently launched on Aptos, reflecting its cross-chain expansion and growing market dominance.
Aave, the decentralised lending protocol, has reached a new industry milestone, now representing one-fifth of the total value locked (TVL) within the decentralised finance (DeFi) ecosystem. According to data from DeFiLlama, Aave’s TVL has surpassed $24 billion, establishing it as the largest DeFi protocol by market share.
This milestone highlights the platform’s accelerated growth over the past 16 months. In January 2024, Aave’s TVL stood at approximately $6.6 billion, representing 11% of DeFi’s total locked value. As of 20 May 2025, this has increased more than threefold to $23.8 billion, while DeFi’s overall TVL has doubled from $56 billion to $115 billion in the same period.
TVL growth reflects rising demand for decentralised lending
The substantial rise in Aave’s dominance—from 11% to 20%—suggests growing interest in decentralised lending amid a broader recovery in the DeFi ecosystem. The sector experienced a significant decline earlier this year, with TVL dropping from a high of $179 billion in December 2024 to a low of $109 billion by April 2025, following a volatile post-election period. However, recent momentum has reversed the trend, with DeFi TVL increasing by 38% over the past month, reaching $151 billion.
A contributing factor to this resurgence has been the sharp rise in Ethereum’s value. ETH has gained nearly 60% in the past month, providing a tailwind for DeFi protocols that rely heavily on Ethereum-based assets.
AAVE token performance and cross-chain developments
The value of Aave’s native governance token, AAVE, has risen in tandem with TVL growth. As of the latest data, AAVE is trading at $262, marking a 90% increase over the past month. The token’s market capitalisation is now approaching $4 billion, according to CoinGecko.
In addition to its performance on Ethereum, Aave is expanding its reach across other blockchain networks. On Monday, the protocol confirmed the deployment of its V3 iteration on the Aptos blockchain, a move intended to diversify its user base and enhance its cross-chain capabilities.
Continued growth in a recovering market
Data from analytics platform SeaLaunch reinforces the narrative of Aave’s outperformance. While the DeFi market has seen a general revival, Aave’s faster-than-average TVL growth positions it as a leading force in the sector’s ongoing recovery.
As DeFi regains momentum, Aave’s strategy of cross-chain expansion and strong user demand for decentralised lending products continues to drive its growth, securing its role as a central pillar in the evolving digital finance landscape.
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