Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Aave now holds $25 billion in outstanding loans, tightening grip on Ethereum lending as market consolidates

Aave now holds $25 billion in outstanding loans, tightening grip on Ethereum lending as market consolidates

The BlockThe Block2025/10/20 16:00
By:By Brandon Kae and Ivan Wu

Quick Take Aave currently serves nearly 1,000 unique borrowers daily, facilitating approximately $25 billion in outstanding loans on Ethereum. The following is excerpted from The Block’s Data and Insights newsletter.

Aave now holds $25 billion in outstanding loans, tightening grip on Ethereum lending as market consolidates image 0

Aave has solidified its position as the dominant lending protocol on Ethereum, now accounting for 82% of all outstanding debt on the network. This market share has grown steadily since 2021, reflecting the platform's ability to attract and retain users across multiple market cycles.

The chart below tracks the distribution of outstanding debt across Ethereum lending platforms, effectively showing where users choose to borrow against their collateral. Aave's expanding share indicates both growing absolute usage and market consolidation around the protocol.

Aave currently serves nearly 1,000 unique borrowers daily, facilitating approximately $25 billion in outstanding loans on Ethereum. The protocol's total value locked stands at roughly $50 billion, with the difference between TVL and debt representing supplied assets that remain available for borrowing.

As a money market protocol, Aave enables users to deposit crypto assets to earn yield while simultaneously allowing others to borrow these assets by posting collateral. This mechanism forms a foundational layer of DeFi infrastructure, enabling leveraged trading, yield farming strategies, and capital efficiency across the ecosystem.

Beyond basic lending and borrowing, Aave offers features like flash loans (uncollateralized loans that must be repaid within a single transaction) and efficiency mode, which allows higher leverage for correlated assets. These capabilities have made the protocol essential for sophisticated DeFi strategies.

The lending market exemplifies a broader trend of consolidation across crypto verticals, though this represents a flight to quality rather than formal mergers. Users gravitate toward platforms with the deepest liquidity, longest track records, and most robust security practices. The protocols' concentration around Ethereum underscores the network's continued role as the center of DeFi lending and borrowing activity.

Aave's entrenched position suggests it will likely remain the market leader, though emerging protocols with novel mechanisms or risk parameters may carve out niches.

This is an excerpt from  The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Gates' Climate Transition: Balancing Human Progress and Emission Goals

- Bill Gates urges global leaders to prioritize human health and economic gains over climate doomsday scenarios, emphasizing immediate societal benefits. - He highlights clean energy innovations and "Green Premiums" to drive adoption, aligning with UN reports showing a projected 10% emissions decline by 2035. - Gates argues economic growth can reduce climate-related deaths in low-income countries by over 50% by 2100, advocating policies that measure progress by lives improved. - His Breakthrough Energy ven

Bitget-RWA2025/10/28 14:18
Gates' Climate Transition: Balancing Human Progress and Emission Goals

OceanPal Strives to Empower Large-Scale User-Controlled AI Through Blockchain-Based Infrastructure

- OceanPal completes $120M PIPE to launch SovereignAI, a blockchain-native AI subsidiary collaborating with NEAR Foundation. - SovereignAI aims to commercialize NEAR Protocol by accumulating 10% of its tokens and building NVIDIA-powered AI infrastructure. - Crypto-native investors and industry leaders back the initiative, emphasizing NEAR's potential for privacy-first AI infrastructure. - OceanPal maintains shipping operations while diversifying into AI sovereignty, leveraging NEAR's chain abstraction for

Bitget-RWA2025/10/28 14:18
OceanPal Strives to Empower Large-Scale User-Controlled AI Through Blockchain-Based Infrastructure

Ethereum News Update: Optimistic Trends for Ethereum Face Downside Threats as $7,000 Milestone Approaches

- Ethereum (ETH) shows bullish patterns similar to gold's 2025 breakout and Bitcoin's pre-halving trends, with analysts projecting $7,000–$8,000 by December. - Technical analysis highlights ETH's consolidation between $3,700–$4,700 and a "triple bottom" pattern, but descending channel resistance remains a key challenge. - Mixed on-chain data reveals ETF outflows and large holder accumulation, while geopolitical tensions and macroeconomic risks create bearish headwinds. - Analysts remain divided: some targe

Bitget-RWA2025/10/28 14:18
Ethereum News Update: Optimistic Trends for Ethereum Face Downside Threats as $7,000 Milestone Approaches

Aster News Today: CZ's Forgiveness Sparks Aster's Token Repurchase to Strengthen Investor Trust

- Aster, a CZ-backed decentralized exchange, announced its S3 token buyback and airdrop with full on-chain transparency. - The buyback uses 70-80% of S3 trading fees, while CZ's U.S. presidential pardon boosted investor confidence and token prices. - Airdrop distributions prioritize repurchased tokens, with remaining allocations unlocked from the S3 pool to reward holders. - Mixed investor reactions highlight risks from crypto volatility, though sustained trading volume could reinforce Aster's competitive

Bitget-RWA2025/10/28 14:18
Aster News Today: CZ's Forgiveness Sparks Aster's Token Repurchase to Strengthen Investor Trust