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      Aave V4 Deposits Exceed $1 Billion, Doubling in a Month

      Aave's fourth-generation decentralized finance (DeFi) lending protocol has surpassed $1 billion in deposits, achieving this milestone around September 16-17, 2026. This rapid growth marks a significant increase from just below $340 million at the beginning of August, with deposits rising to approximately $577 million by early September. Currently, the total deposits are estimated at $1.16 billion, alongside active loans ranging between $300 million and $310 million.

      The surge in deposits is largely attributed to the Ether.fi Cash market on the Optimism network, which alone contributed over $300 million. Aave V4 employs a novel 'hub-and-spoke' liquidity model, allowing developers to create specialized markets that connect to a central liquidity hub, in contrast to the previous versions that pooled all assets into a single market.

      Launched on the Ethereum mainnet in March 2026, Aave V4 has seen a steady increase in activity, with active loans jumping from approximately $115 million to over $200 million in August. Despite this impressive growth, Aave V4 still represents less than 4% of Aave's total deposit base, which is dominated by the earlier version, Aave V3, holding around $31 billion in deposits. The AAVE token has also responded positively, testing resistance levels near $145 as adoption of V4 increases.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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