Aave Hits $40B TVL, Setting New All-Time High Amid ETH Surge

Rising cryptocurrency prices and increased user deposits contributed to Aave’s milestone, with Ether and its derivatives making up a large portion of TVL.

  • Aave reached a new all-time high of $40.3 billion in total value locked (TVL) on May 12, according to DefiLlama.
  • The price of Aave’s native token, AAVE, rose 25% in the past week, reflecting strong inflows and broader market gains.

Aave, a major platform in decentralized finance, reached a new record of funds locked on its protocol, as shown by data from DefiLlama. On May 12, Aave announced through an X post that its total value locked (TVL) surpassed $40.3 billion. TVL is the total value of cryptocurrency assets deposited into a platform’s smart contracts.

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According to onchain data, Aave v3, the latest version of the protocol, holds around $40 billion of these funds. Aave lets users borrow digital assets by providing other cryptocurrencies as collateral, while lenders can earn yield from these loans.

“With these milestones, Aave is proving its dominance in the Lending Space,” wrote DeFi analyst Jonaso in a May 12 X post. Data from DefiLlama shows that Ether and its staking derivatives account for nearly half of Aave’s TVL.

In December, Aave saw a previous TVL high due to a roughly 60% increase in Ether’s price from the prior month. This recent surge is credited both to increasing crypto values and a rise in new user deposits. In terms of Ether, Aave’s TVL grew from about 6 million ETH at the start of 2025 to almost 10 million ETH by May 12. Reporting TVL in ETH, rather than USD, helps show growth without the impact of market price fluctuations.

Before the November U.S. presidential election, Ether traded below $2,500 but nearly doubled to almost $4,000 in the following month. Over the last 30 days, Ether climbed from about $1,500 to $2,500, according to Google Finance.

The price of Aave’s native AAVE token increased by roughly 25% in the last week, supported by data from CoinMarketCap. The token’s rise reflects positive sentiment in the broader cryptocurrency market and ongoing inflows into the protocol.

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