Aave broke an all-time high TVL of more than $40 billion
Aave, a decentralized finance (DeFi) protocol, has achieved a record total value locked (TVL) of $40.3 billion as of May 12, with Aave v3 contributing approximately $40 billion. Aave allows users to borrow cryptocurrency by using other cryptocurrencies as collateral, while lenders earn yield. The recent TVL increase is attributed to user deposit inflows. In December, Aave's TVL reached an all-time high due to a 60% rise in Ether (ETH) prices, which constitute nearly half of Aave's TVL. As of May 12, Aave's TVL rose from around 6 million ETH to nearly 10 million ETH. Ether's price increased from approximately $1,500 to $2,500 in the past month. The AAVE token has also seen a 25% rise in value over the past week, reflecting a positive crypto market and ongoing TVL growth.
