Aave gains capital share in DeFi, yet its prices stall – what’s missing?

AAVE’s share of the stablecoin supply has grown from 3% in January to over 5% by July 2025, outperforming Centralized Finance (CeFi) platforms. Despite this growth, AAVE’s price remains constrained by liquidity issues and market conditions.

The dynamics of deposits and borrowing on AAVE reveal a shift in demand, as USDC leads deposits but is borrowed less, while USDe sees higher borrowing activity. AAVE maintains a revenue share of 60-80% in the DeFi sector, indicating strong user interest.

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