Aave's total lock-up position has surpassed 41.1 billion USD, setting a new historical record! This is equivalent to the 37th largest bank in the United States, occupying 50% of the DeFi lending market.

The decentralized lending protocol Aave set a historical record of $41.1 billion in total Lock-up Position (TVL) on August 24. If we include the $28.9 billion in outstanding loans, its managed asset scale reaches $71.1 billion. According to Fed data, Aave is equivalent to the 37th largest commercial bank in the United States, ranking in the top 1.7% of banks nationwide. The protocol currently holds a 50% share of the $81.5 billion total size of the DeFi lending market, and its Token AAVE has risen over 177% since the low in April, with institutional adoption and stablecoin deposits becoming the core driving force for growth.

1. Bank-level scale: A milestone comparison between DeFi protocols and traditional finance.

According to the Fed's data as of June 30, Aave's $41.1 billion TVL has surpassed Prosperity Bank ($38.4 billion in deposits) and is just $300 million short of Bank OZK. If the $28.9 billion in outstanding loans is included, Aave manages $71.1 billion in assets, placing it 37th among commercial banks in the United States (out of 2,156 banks nationwide, in the top 1.7%).

Aave founder Stani Kulechov emphasized: "The AAVE protocol is equivalent to the 37th largest bank, but it is not a bank; it is a network accessible to any financial institution for obtaining non-Fed associated returns."

2. Dominance in the lending market: 50% share and trillions in capital flow

DefiLlama data shows that Aave accounts for as much as 50% of the TVL in the DeFi lending market, with a scale nearly 6 times that of its largest competitor Morpho (7 billion USD). Last week, the protocol continuously broke through key milestones:

• As of August 15, total deposits reached 3 trillion US dollars.
• On August 13, active loans exceeded 29 billion USD (close to historical peak)

Institutions adopting become the core driving force of expansion:

• The NASDAQ-listed company BTCS uses Aave to obtain returns on Ethereum holdings.
• Ethena's $6.4 billion USDe stablecoin and related assets are deposited on the platform.

Three, Token Performance and Ecological Evolution: AAVE surged 177% confirming the fundamentals.

The price of AAVE Token has continued to rise from a low of $114.05 on April 8, reaching $316.74 at the time of writing, an increase of over 177%. This performance resonates with the improvement in the fundamentals of the protocol:

• Institutional-grade financial infrastructure positioning has been recognized.
• Traditional financial institutions are gradually integrating decentralized lending services.
• The scale of stablecoin and RWA (Real World Assets) deposits continues to expand.

Four, Conclusion

Aave has established an absolute dominant position in the DeFi lending sector with a TVL of $41.1 billion and a 50% market share, showcasing its ability to compete with traditional financial giants. The massive influx of institutional funds (especially in stablecoins and tokenized government bonds) indicates that DeFi is transitioning from a fringe experiment to a core component of financial infrastructure. Investors should pay attention to the changes in protocol revenue and AAVE Token staking rates, as these metrics will determine its ability to continuously capture value in the wave of integration with traditional finance.