AAVE gains capital share in DeFi, yet its prices stall – What’s missing?

Key Points

1. AAVE holds 5% of the stablecoin supply, surpassing all CeFi lenders combined, and has maintained 60-80% of the lending sector proportion for 2.5 years.

2. AAVE's circulating stablecoins grew from 3% in January to over 5% in July 2025, with USDC being the most deposited stablecoin ($669M) and USDe/USDT dominating borrowing activity.

3. AAVE's share of total lending revenue remained between 60-80% since January 2023, with projected annualized revenue nearing $100M in June 2025.

4. AAVE's price fluctuated between $248-$284, with declining liquidity and momentum, failing to break key resistance or support levels.

5. Despite capital dominance, other DeFi protocols like Uniswap and DAI show stronger day-to-day user activity compared to AAVE.