For people new to the crypto space who recently joined because of the meme tokens on Solana, especially the new hype around $TRUMP, AAVE might not be well-known or familiar.
In a simpler explanation, AAVE is a decentralised lending app that has been a part of the crypto community for years.
This DApp allows users to lend or borrow money on-chain using smart contracts.
In this case, for people who want to earn revenue from lending their money to others, the AAVE Dapp is a great choice because it is one of the pioneering leaders in this industry.
Why is AAVE Interesting to Observe?
AAVE themselves is one of the decentralised lending and borrowing platforms that has grown immensely during the early bull run of 2024.
According to DefiLlama, the Total Value Locked (TVL) in AAVE has increased rapidly, rising from $6.628 billion in January 2024 to $20.408 billion in January 2025, with a consistent $17.644 billion TVL attributed to Ethereum.
Additionally, their revenue has been growing steadily when examining their annual data. AAVE's generated annual fees are currently at $763.57 million (as of 28 January), with an accumulated total of $1.128 billion. Furthermore, their reported annual revenue stands at $145.52 million, according to DefiLlama.
How Did AAVE Token Perform Last Year?
With the total increase in TVL on the platform, alongside the fees and revenue generated from its services, the price of AAVE has followed suit.
Over the past 365 days, AAVE has grown by 226.23% (1y) compared to its price last year, currently sitting at a $4.52 billion market cap.
AAVE and 2025
Based on the data and the significant increase in the token price, this performance highlights that decentralised lending and borrowing platforms continue to play an important role in the growth of the crypto space. Furthermore, AAVE and other platforms with similar functions could potentially become pivotal during the upcoming bull run. As more conservative investors, curious about crypto, enter the market and choose to park their money on-chain while dollar-cost averaging (DCA) their portfolios, these platforms are likely to experience enormous inflows from this type of investor.
---
---
---
And that's all for today🚀
$AAVE has been really interesting for myself.
Anyway, feel free to give your comment on this!
And if you like this kind of $BTC $ETH $BNB and other crypto coins/tokens information on your timeline, consider following me for more!
Both here and Twitter 🐦
