Aave ( $AAVE ) Transformed Itself From a Whale-Dominated Platform to One That Caters to Everyday Users

Aave, the largest lending and borrowing protocol on Ethereum, is transforming itself dramatically. Over the past couple of years, the dynamics of the platform’s supply and borrow usages

A striking shift in the dynamics of the largest lending and borrowing protocol on Ethereum, Aave, has come to light, revealing a dramatic change in the platform’s supply and borrow usages over the past couple of years.

As Dynamo DeFi highlighted, the concentration of big 'whale' users' supply and borrow activities has decreased significantly, shifting the balance of power toward everyday users. Two years ago, over 80% of Aave's activity was in the hands of large users, but now, that user type only commands roughly 20% of Aave's activity.

This shift in user demographics is a response to DeFi adoption. As finance becomes more decentralized, we have more control over our money, and platforms like Aave are set up to meet our needs. Aave lets you earn interest on assets you just have lying around. You can effectively rent them out to people who want to take out loans. You can also take out a loan yourself from the same platform. Aave is set up to do these things without anybody getting in the way, and it was apparently designed with people in mind who have previously been somewhat shut out of the finance sector.

This is a change that is sure to have a positive impact on the broader DeFi ecosystem, as it will make it easier for smaller users to participate in and benefit from decentralized finance.

Aave ( $AAVE)

Biggest lending/borrowing protocol on Ethereum

$19.5B+ in TVL, $60M annualized revenue with no token unlocks left

Starting $1M/week token buybacks soon, which will add some buying pressure. pic.twitter.com/ucLWiqO3qN

— Sjuul | AltCryptoGems (@AltCryptoGems) March 27, 2025

Aave has already hit the top spot as the largest DeFi platform for lending and borrowing on Ethereum, with more than $19.5 billion in TVL. It has a reputation for offering very innovative, very interesting financial products—in fact, it’s become the certification authority for such products in the crypto space. If you want to earn interest on something, or if you want to pledge something as collateral to take out a loan, Aave is pretty much the place to go if you want to do it in a DeFi way. The platform happens to be incredibly user-friendly as well, which also counts for something. And you have to give them credit for being strong, transparent, and getting governance right—all of which matters for both institutional players and individual users.

Aave is also known for being very community-focused. The protocol’s team has been engaging closely with its community on various proposals and initiatives, like the introduction of new features and the integration of new crypto assets.

The protocol’s core structure is also seeing continued advancement. The total value that is now locked (TVL) in Aave has gone past $19.5 billion, keeping Aave distinctly above any nearest rivals as the largest lending and borrowing protocol on Ethereum. Even when not paying attention to the growing user base, it’s clear that Aave’s leadership in decentralized finance is being solidified by some very interesting, innovative, and user-friendly features.

This protocol’s remarkable total value locked mirrors not just its triumph in drawing users—it also indicates a win in keeping cash on hand, which is necessary for the protocol to make the transactions it needs to make and be competitive in the DeFi lending space. Aave sitting at the head of the Ethereum lending market speaks volumes about the protocol’s capacity to pivot when necessary.

In the DeFi ecosystem, Aave is working to strengthen its position further. It has some new initiatives in place that are aimed at driving growth and, more importantly, creating a lot more value for the holders of its token. One of the most exciting programs that are now set to launch is Aave’s new buyback program. It’s a huge buyback program that is going to start quite soon. Aave is going to buy back $1 million worth of its token every week for potentially a long time.

The buybacks show that the Aave team is working to add value to its ecosystem, which in turn benefits both holders and users of its tokens. Now that all the tokens that were slated for unlocking have been unlocked, the Aave team is focusing on giving back to the community that supports it and on driving the token’s market position in a way that is beneficial to both holders and users.