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Aave, a key DeFi protocol on Ethereum, has become the focus. According to The Block data, Aave's total locked value (TVL) broke through $30 billion around May 19, 2025, growing 50% from its early-year low point, demonstrating Aave's strong momentum and suggesting that the Ethereum DeFi ecosystem is "reigniting".

AAVE Surges Over 80% This Month

Aave currently generates an average daily fee income of over $1 million, with outstanding loans of around $10 billion. The approximately 33% debt-to-TVL ratio also shows that the protocol maintains good liquidity while providing yields. This growth is attributed to flash loans, dynamic interest rates, multi-chain deployment, and integration of new stablecoins like Ripple's RLUSD and its own stablecoin GHO (with annual circulation growth exceeding 4.5 times).

The recovery of Ethereum's price and user confidence are also important drivers.

The AAVE token price rose over 22% today (20th), reaching $266.4 at the time of writing, with a monthly increase of 88%.

Broad Impact and Market Outlook

Aave's TVL growth directly enhances Ethereum's overall liquidity, promoting lending and trading activities (with decentralized exchange trading volume on Ethereum recently growing 30%), consolidating Ethereum's leadership in the DeFi field. Will this recovery of Ethereum and its top DeFi protocols lead the DeFi sector into a new expansion cycle? This is worth our continued attention.