The post AAVE Tops TVL Rankings in 2026 – Impact on the Crypto Explained appeared on BitcoinEthereumNews.com. Aave takes the poll position in the list of leadingThe post AAVE Tops TVL Rankings in 2026 – Impact on the Crypto Explained appeared on BitcoinEthereumNews.com. Aave takes the poll position in the list of leading

AAVE Tops TVL Rankings in 2026 – Impact on the Crypto Explained

  • Aave takes the poll position in the list of leading protocols by total value locked (TVL).
  • Borrowed liquidity on the protocol remained elevated despite cooling down slightly in H2 2025.
  • Find out why AAVE crypto could bounce back in January from its recent lows.

The DeFi segment cooled substantially over the last six months, but some protocols still demonstrated healthy activity. Among them was the Aave protocol, which has been holding a solid lead in the segment.

DeFiLlama has just published its top 10 protocol list by total value locked (TVL), with Aave emerging at the top. It had over $34 billion worth of value locked within its ecosystem, and a lead of more than $7 billion compared to the runner-up.

Leading protocols/ source: DeFiLlama

It took a substantial hit despite its TVL lead. The protocol’s TVL peaked above $45 billion in October last year. However, AAVE price declined substantially during the bearish months in the second half of the year.

Nevertheless, it still retained a large figure, which has allowed it to secure the lead in the list of top protocols by TVL. That confirmed healthy adoption and robust utility, but the value borrowed may offer a much clearer view.

Here’s How Borrowed Funds on AAVE Fared in 2025

Aave’s main business model revolves around lending and borrowing. The TVL primarily reflects the liquidity that investors inject into its ecosystem to earn a passive yield.

The borrowed liquidity metric provides a much better picture of the utility that the network has been experiencing. For context, the Aave protocol experienced a massive surge in borrowing in 2024 and 2025.

It recorded just over $3 billion in borrowed funds at the start of 2024. That figure ballooned to over $30.5 billion at its peak in September 2025.

AAVE borrowed funds and revenue/ source: DeFiLlama

Just as expected, the bearish market faces watered-down DeFi activity. That was evident in the drop in borrowed funds to just over $22 billion currently. Still a substantial amount despite the cool-off, but it confirmed that Aave was still experiencing robust demand.

2025 also marked the year that Aave saw its highest monthly revenue at $14.4 million in January. Revenue peaked at $13.3 million in September in the second half of the year and closed December at $7.57 million.

Is AAVE Price on the Verge of a Recovery?

AAVE crypto price did not come close to retesting its historic top despite its aggressive rally from April to August 2025. It also gave up almost all of those gains courtesy of its bearish price action since then.

For reference, AAVE crypto peaked at $385 in 2025 but has since cooled to $164 at press time. Moreover, this was after a 10% upside in the last 24 hours as the market pushed for a bullish start to the year.

AAVE price/ source: TradingView

The heavily discounted price reflected the bearish conditions over the last few months. Nevertheless, its native protocol’s top ranking by TVL suggests that organic demand remained strong, but not enough to offset speculative forces.

In summary, the Aave protocol just kicked off 2026 on a high note as the leading DeFi protocol by TVL. This suggests that it is still one of the protocols experiencing healthy activity.

Moreover, its discounted native token may be a candidate for a healthy rally. The utility aspect may attract investors and potentially enable AAVE price to achieve further upside once the market enters a bullish recovery phase.

Source: https://www.thecoinrepublic.com/2026/01/03/aave-tops-tvl-rankings-in-2026-impact-on-the-crypto-explained/

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