AAVE gains capital share in DeFi, yet its prices stall – What’s missing?

• AAVE by itself held 5% of the stablecoin provide, surpassing all CeFi lenders mixed.
• AAVE has had 2.5 years of frequently protecting 60 to 80% of the entire lending sector proportion.

DeFi would possibly lastly be outgrowing its underdog standing.

That is primarily on account of streamlining that got here after the SEC’s DeFi roundtable within the second quarter of this 12 months. Aave [AAVE] was among the many beneficiaries of the SEC’s motion.

With this in motion, AAVE grew in circulating stablecoins, surging from 3% in January to over 5% in July 2025 as per analyst Leon Waidmann. This regular progress meant that there was rising curiosity in DeFi and belief within the lending mannequin.

That sharp progress not solely alerts rising belief in decentralized lending fashions but additionally reveals a wider shift in how customers—retail and institutional—are parking capital.

Deposits and borrowing patterns present divergence in demand

The amount of deposits on AAVE showed that USDC was essentially the most used, with a deposit quantity of $669 million. WETH (Wrapped ETH) adopted with a deposit quantity of $180.3 million.

In distinction, borrowing exercise was dominated by USDe and USDT, at $604.5 million and $282.7 million, respectively.

Curiously, USDC was deposited in massive numbers, however it was borrowed much less, at $87.4 million. USDe, nevertheless, reversed the case with increased borrowing however low deposits.

Such a disbalance indicated a transition within the demand for borrowing extra stablecoins.

From a income standpoint, AAVE continued to dominate the DeFi lending sector. Since January 2023, its share of whole lending income has remained between 60% and 80%, primarily based on Dune knowledge.

Supply: Dune Analytics

In June 2025, that determine stood above 50%, translating to a projected annualized income nearing $100 million.

AAVE additionally continued to be in its persistent exercise with 1.46k energetic addresses and 179k holders as per IntoTheBlock.

Nevertheless, essentially the most energetic addresses and normal holders of DeFi tokens had been essentially the most energetic, with DAI rating first, then intently adopted by Uniswap.

Supply: IntoTheBlock

This means that whereas AAVE could also be main on capital metrics, different DeFi protocols preserve stronger day-to-day person exercise.

Worth stalls as liquidity crunches 

Coinalyze’s 2-hour chart confirmed that AAVE’s worth fluctuated between $248 and $284, with the newest rebound failing to cross earlier highs.

During the last two days, liquidity within the order books declined, including to the sideways motion.

Supply: Coinalyze

Between the twenty fourth of June and the first of July, Lengthy and Brief Liquidations spiked with out sustained route. The worth finally settled inside a tighter band of $260–$270, although momentum weakened.

So long as the value fails to interrupt both above the extent of $284 or beneath the extent of $260 then AAVE will stagnate within the vary with deteriorating momentum.