Aave tops $1T in loans as TVL hits $27.2B amid RWA push

• Lyla Velez
• February 26, 2026
• News
• 0 Comments

Key Points:

• Aave surpassed $1 trillion in cumulative loans, a DeFi first.
• Cumulative volume measures throughput, including leverage loops and flash loans.
• Milestone signals scalable on-chain credit, but durability hinges on liquidity and risk.

Aave has crossed $1,000,000,000,000 in all-time loans, a historic first for decentralized lending, according to Bitget News (bitget.com). The figure reflects cumulative lending volume processed by the protocol over time.

Cumulative lending volume measures the total notional value originated and repaid across Aave markets. It includes repeated borrowings, leverage loops, and flash loans, so it signals throughput rather than capital parked.

The milestone matters because it evidences on-chain credit rails achieving scale on public infrastructure, originally centered on Ethereum. However, long-term health is determined more by liquidity depth, risk controls, and durable fee capture than by gross flow alone.

Cumulative volume vs. TVL vs. fees: key differences

Cumulative volume is a flow metric tallying all originations and repayments; it can be elevated by recursive positions and one-block flash activity. Total value locked (TVL) is a stock measure of assets currently supplied as collateral or liquidity. Fees and net revenue reflect monetization and are closer to operating performance.

As reported by MoneyCheck (moneycheck.com), Aave currently secures about $27.2 billion in TVL and generates roughly $83.3 million in monthly fees, underscoring both scale and monetization among DeFi lenders. These figures contextualize the $1T milestone with sustained liquidity and recurring usage.

Leadership frames the milestone less as a headline figure and more as evidence that an open liquidity network can support builders and institutions. That framing highlights network effects beyond one-off volume spikes.

“A decade ago, DeFi and Aave didn’t exist. They were just ideas. Today, Aave stands as the backbone of on-chain lending, powering a new financial system that is open, global, and unstoppable,” said Stani Kulechov, CEO of Aave Labs, as reported by Cointelegraph (cointelegraph.com).

At the time of this writing, AAVE trades near $117 and is down roughly 40% over the past 12 months, as reported by CoinCentral (coincentral.com).

Outlook: institutional adoption, RWA on Ethereum, and key risks

Surpassing $1T coincides with rising institutional interest in on-chain credit, as per BanklessTimes (banklesstimes.com), which noted momentum around larger counterparties. If that trend persists, it could translate into deeper liquidity and more predictable borrowing demand.

Real‑world assets on Ethereum remain a key vector: tokenized collateral and settlement rails can bring non-crypto cash flows on-chain, broadening borrower profiles and duration. Execution depends on compliant onboarding, robust valuation methods, and oracle reliability.

Analysts have also cautioned that regulatory developments could slow growth or reshape market access, as reported by InteractiveCrypto (interactivecrypto.com). Areas to monitor include KYC/AML expectations, potential securities classification, and the interplay between DeFi credit and banking rules across jurisdictions.

Key technical risks persist: smart contract vulnerabilities, liquidation mechanics during volatility, and liquidity fragmentation across deployments. For tokenholders, the lending milestone does not mechanically determine AAVE’s price; outcomes depend on governance utility, risk parameters, and how fees and incentives accrue over time.