Aave, the leading decentralized lending protocol on Ethereum, is driving the recovery of DeFi as TVL reached $30 billion yesterday, a 50% increase since the beginning of the year. Could this be a sign of a new DeFi cycle?

The Impressive Return of $AAVE

After a period of market stagnation, when many believed DeFi was 'dead', Aave proved otherwise. Aave's TVL not only surpassed $30 billion but also peaked at $40.3 billion on 12/05/2025, mainly thanks to Aave V3. In terms of $ETH , TVL increased from 6 million ETH at the beginning of the year to nearly 10 million ETH, reflecting a strong breakout. With the price of ETH rising from $1,500 to $2,500 over the past month, and the AAVE token increasing nearly 25% in 7 days, Aave has risen to the position of the second-largest dApp by TVL, just after Lido.

Growth Momentum: No More FOMO

The 50% growth is not due to FOMO or short-term capital flows, but stems from a change in investor behavior. From a defensive stance, they have shifted to seeking sustainable yields as systemic risk decreases and macro stability returns. Lending/borrowing has become the backbone of DeFi, with Aave recording over $10 billion in outstanding loans – a debt-to-TVL ratio of 33%, an ideal level to ensure safe liquidity.

Aave currently generates over $1 million in protocol fees daily, reflecting real user interaction from borrowers, not just depositors waiting for the right moment. Unlike the first DeFi cycle that relied on airdrops or liquidity mining, this time it is driven by real demand, genuine users, and long-term capital – factors that were rare in crypto before.

Impact and Outlook

With crypto fund inflows reaching $3.4 billion last week and projected accumulation of $330 billion into Bitcoin by 2029, alongside Ethereum's (at $2,500) growth, Aave is leading the new DeFi trend. In the next 1-2 years, if this trend continues, DeFi could expand significantly, attracting more institutional capital.

Conclusion: Has the New DeFi Cycle Begun?

Aave's TVL of $30 billion, up 50% from the beginning of the year, is a positive signal for the new DeFi cycle, not based on FOMO but on real demand. With sustainable growth potential, Aave promises to shape the future of DeFi, but investors need to keep a close watch to seize the opportunity. #anhbacong