- AAVE by itself held 5% of the stablecoin supply, surpassing all CeFi lenders combined.
- AAVE has had 2.5 years of continually keeping 60 to 80% of the whole lending sector proportion.
DeFi might finally be outgrowing its underdog status.
This is mainly due to streamlining that came after the SEC’s DeFi roundtable in the second quarter of this year. Aave [AAVE] was among the beneficiaries of the SEC’s action.
With this in action, AAVE grew in circulating stablecoins, surging from 3% in January to over 5% in July 2025 as per analyst Leon Waidmann. This steady growth meant that there was growing interest in DeFi and trust in the lending model.
That sharp growth not only signals growing trust in decentralized lending models but also reveals a wider shift in how users—retail and institutional—are parking capital.
Deposits and borrowing patterns show divergence in demand
The volume of deposits on AAVE showed that USDC was the most used, with a deposit volume of $669 million. WETH (Wrapped ETH) followed with a deposit volume of $180.3 million.
In contrast, borrowing activity was dominated by USDe and USDT, at $604.5 million and $282.7 million, respectively.
Interestingly, USDC was deposited in large numbers, but it was borrowed less, at $87.4 million. USDe, however, reversed the case with higher borrowing but low deposits.
Such a disbalance indicated a transition in the demand for borrowing more stablecoins.
From a revenue standpoint, AAVE continued to dominate the DeFi lending sector. Since January 2023, its share of total lending revenue has remained between 60% and 80%, based on Dune data.
Source: Dune Analytics
In June 2025, that figure stood above 50%, translating to a projected annualized revenue nearing $100 million.
AAVE also continued to be in its persistent activity with 1.46k active addresses and 179k holders as per IntoTheBlock.
However, the most active addresses and general holders of DeFi tokens were the most active, with DAI ranking first, then closely followed by Uniswap.
Source: IntoTheBlock
This indicates that while AAVE may be leading on capital metrics, other DeFi protocols maintain stronger day-to-day user activity.
Price stalls as liquidity crunches
Coinalyze’s 2-hour chart showed that AAVE’s price fluctuated between $248 and $284, with the most recent rebound failing to cross previous highs.
Over the last two days, liquidity in the order books declined, adding to the sideways action.
Source: Coinalyze
Between the 24th of June and the 1st of July, Long and Short Liquidations spiked without sustained direction. The price eventually settled within a tighter band of $260–$270, though momentum weakened.
As long as the price fails to break either above the level of $284 or below the level of $260 then AAVE will stagnate in the range with deteriorating momentum.
