What you need to know:
- Aave’s total lending volume has exceeded $1 trillion.
- The altcoin achieves a total value of $27.2 billion and generates $83.3 million in fees over the past 30 days.
- The symbolic DAO proposal initiates a discussion on the $42.5 million financing package.
Aave has reached a milestone that no other DeFi protocol has been able to achieve. The credit giant has surpassed $1 trillion in cumulative lending volume. The current system of on-chain credit comes from ETHLend, which started in 2017.
Stani Kulechov founded Aave, which rebranded itself in 2018. The platform acts as the main hub for decentralized finance. The platform holds the total value, which is $27.2 billion. Users have the ability to deposit cryptocurrency, generate returns and access instant loans based on their collateral. The system works with basic components. The system works at a comprehensive level that goes beyond basic operations.
The token has collected $83.3 million through its fee structure in the past month. The amount represents almost four times the value of the nearest competing company. In the DeFi lending space, financial results deliver a stronger message than business obligations.
Also Read: Aave Governance Dispute Escalates as ACI and Aave Labs Publish Dueling Reports in 2026
Aave dominates DeFi lending with record metrics
The Aave platform has the highest total value of locked TVL among all leading credit protocols. In total, six platforms, including Morpho, JustLend, SparkLend, Maple Kamin Lend and Compound Finance, have reached market capitalizations of more than $1 billion. Aave dominates the market with a locked total value of $27.2 billion, while no competitor approaches this level.
The Labs team introduced the token Horizon through an Ethereum launch in August. The organization wanted to achieve one specific mission, namely to create an on-chain solution for institutional customers. The companies VanEck WisdomTree and Securitize participated in the initial phase using stablecoin loans backed by their actual assets.
Kulechov believes the next frontier lies in tokenizing “abundant assets” such as solar energy, battery storage and robotics. He estimates that these sectors could reach a value of $50 trillion by the year 2050. DeFi lending should establish tokenization for its operations, allowing the industry to access traditional economic markets beyond cryptocurrency users.
Aave DAO’s proposal leads to an administrative debate
The expansion of our organization has created operational challenges. The board proposal requires token holders to approve the funding of $42.5 million in stablecoins, along with 75,000 tokens for the Labs.
Aave Labs will send all revenue from token branded products to the DAO treasury. Supporters see coordination. Critics see a concentration of influence.
The community must make the final choice. Aave has shown that it is capable of growing. The organization must find a way to achieve its goals while maintaining its decentralized structure as it seeks to maintain its status as the premier liquidity network used in international finance.
Also read: AAVE faces a brutal 19% make-or-break wave
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