After a long period of being overshadowed, DeFi is finally regaining its position in the market.
This mainly comes from a more streamlined and clearer process following the DeFi seminar organized by the U.S. Securities and Exchange Commission (SEC) in the second quarter of this year. Aave (AAVE) is one of the beneficiaries of this move by the SEC.
As a result, the circulating stablecoin supply on AAVE has surged, from 3% in January to over 5% in July 2025, according to analyst Leon Waidmann. This steady growth indicates an increasing interest in DeFi and confidence in the decentralized lending model.
The aforementioned surge not only reflects an increasing confidence in the decentralized lending model but also indicates a larger shift in how users — both retail and institutional investors — allocate capital.
The deposit and borrowing models show divergence in demand.
AAVE's deposit volume shows that USDC is the most used stablecoin, with a total deposit value of up to $669 million. Following is WETH (Wrapped ETH) with $180.3 million.
In contrast, USDe and USDT dominated borrowing activity, reaching $604.5 million and $282.7 million, respectively.
Notably, USDC was deposited in large amounts but was borrowed less, only about $87.4 million. Meanwhile, USDe showed the opposite trend — being borrowed a lot but with low deposits.
This imbalance indicates a shift in demand, as users increasingly want to borrow more stablecoins, especially those like USDe.
In terms of revenue, AAVE continues to maintain a dominant position in the DeFi lending space. Since January 2023, AAVE's total revenue market share has fluctuated between 60% and 80%, according to data from Dune.
In June 2025, AAVE's revenue rate remained above 50%, equivalent to an estimated annual revenue of nearly $100 million.
AAVE continues to maintain a stable level of activity, with 1,460 active addresses and 179,000 holders, according to data from IntoTheBlock.
However, in terms of the most active addresses and the total number of DeFi token holders, other projects dominate, with DAI leading, closely followed by Uniswap.
This indicates that although AAVE may lead in capital metrics, other DeFi protocols maintain stronger daily user activity.
Prices stagnated due to tightened liquidity.
The 2-hour chart from Coinalyze shows that AAVE's price fluctuated between $248 and $284, with the most recent recovery failing to surpass previous peaks.
Over the past two days, liquidity in the order book has decreased, contributing to the sideways trading price and lack of breakthroughs.
From June 24 to July 1, Long and Short liquidations surged but without a clear trend. Ultimately, AAVE's price stabilized within a narrow range of $260–$270, although market momentum weakened.
As long as the price cannot break above $284 or fall below $260, AAVE will continue to struggle within this price range with a decreasing momentum.