Understanding Aave’s 55% lending share and what it means for $290 support

Key Takeaways

How strong are AAVE fundamentals now?

Revenue climbed to $192 million with a 55% share, supported by $28.4 billion in Active Loans.

What signals does AAVE’s price show?

Token traded at $292 support, down 2%, with a breakout likely if loan demand and revenue momentum persist.

Aave  [AAVE] showed strong signs of renewed revenue momentum from borrowers on the Ethereum [ETH] network recently.

According to Token Terminal data, Aave’s protocol revenue on Ethereum surged to $192 million, with a lending Market Share of 55%.

The latest weekly run rate reflected $3.08 million, signaling steady growth in user activity.

Source: Token Terminal

Borrowing activity is driving growth

The real story lies in Aave’s loan book.

Active loans on the protocol have surged past $28 billion, continuing an uptrend that’s been building steadily in recent months.

Historically, increased borrowing demand has translated into higher protocol revenue, as users pay fees that strengthen Aave’s financial fundamentals.

This surge also signals broader momentum across Ethereum’s DeFi ecosystem.

The expansion in lending activity reinforces the view that investors are increasingly shifting toward decentralized finance over centralized lenders.

More borrowing typically means stronger revenue and growing confidence in DeFi protocols.

Price action yet to catch up

Interestingly, AAVE’s price has not mirrored the surge in protocol revenue.

The token traded in a sluggish range, with its prices shrinking by 2% over the last 24 hours, at press time, leaving a gap between fundamentals and investor sentiment.

Price tested a confluence of a demand zone near $290 and an ascending trendline support.

Source: TradingView

Having said that, such gaps between fundamentals and price rarely persisted.

Either enthusiasm around the token might catch up with the growth in Aave’s revenues, or the momentum in lending activity could cool.

For now, the fundamentals looked stronger than price action. If loan demand held above $28 billion, Aave could be preparing for a breakout in the coming weeks.