The lending DeFi protocol Aave has established itself as a major player in the decentralized finance ecosystem, with total active borrowings currently valued at $30.2 billion, as reported by Token Terminal. Holding an impressive market share of approximately 65%, Aave significantly outpaces its nearest competitor, Morpho, which has $4.3 billion in active borrowings.
In addition to its borrowing metrics, Aave also showcases a record Total Value Locked (TVL) of $42.1 billion, positioning it firmly at the forefront of the DeFi sector. This dominance, however, is closely contested, with Lido and EigenLayer reporting volumes of $38.4 billion and $19 billion, respectively.
Over the past week, Aave generated $24.7 million in revenue, driven by various components including interest payments, flash loan fees, liquidation fees, and penalties imposed on borrowers. When compared to other DeFi protocols, Aave ranks just behind decentralized exchanges such as Pump.Fun, which garnered $39.4 million, and Uniswap, with $29.2 million. However, these figures pale in comparison to Tether, the leading stablecoin issuer, which reported revenues exceeding $152 million.
In a recent development, Aave’s developers announced a detailed roadmap for the deployment of the fourth version of the protocol, aiming for a rollout in the fourth quarter of 2025. The roadmap outlines completed milestones and what remains as Aave V4 progresses through its final stages, including review, testing, and deployment. One of the initial steps includes launching a test network and the publication of the codebase, enabling community members and service providers to experiment with the new workflows prior to the public launch.
The anticipated upgrade is designed to introduce a more modular, efficient, and resilient architecture, which aims to enhance the platform’s capacity for future innovations. This news follows an unsettling incident in August, when fraudsters exploited Aave users through the Google Ads service, highlighting the ongoing challenges within the DeFi landscape.
