Aave’s surge in net deposits has vaulted it toward the $100 billion mark, putting the DeFi protocol on par with major traditional banks.
Key Takeaways
- Aave’s net deposit made a notable surge, from $50 billion in July to about $59.32 billion as of August 11, 2025, making the $100 billion milestone a possible run before end of the year.
- With 66.7% share of the $91.7 billion DeFi lending sector, Aave’s holdings substantially outpace its closest competitor, Morpho.
- At this scale, Aave rivals Deutsche Bank and ranks 41st among U.S.-chartered banks. However, growing exposure raises rehypothecation and liquidity concerns, especially via USDe deposits.
Aave founder Stani Kulechov posted on X (formerly Twitter) yesterday, August 10, that Aave could reach $100 billion in net deposits by the end of this year or even sooner, based on its current pace of expansion. As of today, August 11, 2025, the DeFi (decentralized finance) protocol holds roughly $59.324 billion, according to token terminal’s latest net deposits data from the top 10 projects, where Aave secures the number one spot.
Meanwhile, a recent report from CryptoSlate highlights that Aave now commands 66.7% of the $91.7 billion DeFi lending market, dwarfing its nearest competitor, Morpho, which holds just $7.7 billion.
Top 10 projects by net deposits
DeFi Protocol Rivals Global Banking Giants
Antonio Garcia-Martinez, Director of Base Ads at Coinbase, noted that hitting this potential milestone would make it possible for Aave to make it to the top 35 banks globally and become comparable to Deutsche Bank. Meanwhile, U.S. Federal Reserve data further puts Aave’s deposit volume at 41st among U.S.-chartered commercial banks, even ahead of Barclays.
What’s Driving the Surge?
Aave’s rapid growth in net deposits is fueled by DeFi-native momentum and increasing interest from traditional finance players. Nasdaq-listed BTCS (Blockchain Technology Consensus Solutions) has turned to Aave to enhance yield and bolster ETH holdings.
However, risk management firm Chaos Labs has flagged concerns over rehypothecation, where collateral is reused across multiple transactions. This heightens potential liquidity strain and systemic leverage risk, especially due to USDe-related exposure.
AAVE Price Holds Steady Amid Deposit Boom
As of writing (12:00 PM UTC), the price of Aave (AAVE) is at approximately $296.3, down 1.7% over the past 24 hours, according to the latest market data from TradingView. However, the intraday high reached over $312.19, while the low touched $300.29.
Though price action remains subdued, the surge in deposits underscores strong backing in its native token, potentially laying groundwork for further appreciation, especially if growth accelerates or traditional finance engagement intensifies.
What’s Next
Aave’s rapid growth while on its way toward $100 billion in net deposits demonstrates its emergence as a top performing DeFi protocol, making it on par and a direct competitor to traditional banks with the potential of being a promising platform globally. However, as it hints at huge potential in achieving this significant milestone, the protocol must navigate emerging risks tied to liquidity and rehypothecation. If managed prudently, this achievement could make a huge and favorable difference, bridging DeFi infrastructure with the legacy financial system, reinforcing Aave’s position at the forefront of decentralized finance.
Summary
Aave’s deposits have surged from $50B in July to over $59B in mid-August, aiming for $100B before year’s end. Its dominance in DeFi lending rivals major banks like Deutsche Bank, but liquidity and rehypothecation risks remain under watch.
