The DeFi protocol Aave has strengthened its position as the largest lending service in the Ethereum ecosystem, concentrating 82% of all active loan positions on the network. About 1,000 unique borrowers use the platform daily, and the total volume of issued loans has reached $25 billion.
Aave has become a center of trust on Ethereum
According to The Block, Aave’s share in the Ethereum lending sector has been growing since 2021, reflecting user trust and the protocol’s resilience through various market cycles. The total value locked (TVL) is about $50 billion, half of which is used for active loans, while the rest is available for new borrowers.
Aave has become a key part of Ethereum’s infrastructure, providing liquidity for traders, yield farmers, and capital management protocols. Its model allows users to deposit assets for interest and take out collateralized loans, forming the basis for many leveraged and arbitrage strategies in DeFi.
How Aave became the core of DeFi infrastructure
Market share dynamics show that users prefer platforms with deep liquidity and an impeccable security reputation. That is why Aave has become the center of market consolidation, not through mergers, but through the natural outflow of users from less resilient projects.
In addition to standard functions, Aave offers flash loans — instant loans without collateral, which are repaid within a single transaction. Also available is Efficiency Mode (eMode), which allows borrowing with higher leverage when working with highly correlated assets, such as stablecoins.
These tools make Aave not just a lending platform, but an infrastructure layer for complex strategies in DeFi — from arbitrage to automated investment schemes.
Users choose reliability
The growth of Aave’s share reflects not only the concentration of liquidity but also the shift of users to protocols that have proven their resilience in stressful conditions. After a series of market shocks, investors are increasingly choosing a ‘flight to quality’ — moving to safer and more proven platforms.
At the same time, Ethereum retains its status as the center of lending activity. Despite the development of multichain solutions, the main volumes of liquidity and trust remain in the network of the second largest blockchain by capitalization.
What’s next?
Having secured its dominance, Aave is unlikely to lose its leadership in the near future. However, analysts suggest that new protocols with unique risk models or specialized assets may occupy niche positions.
The main task for Aave in the coming year is to maintain a balance between security and innovation, preserving investor trust and developing flexible lending products.
Read more: Joseph Lubin launches a token economy platform on Linea. A new step towards market governance without centralization
