Aave Surpasses Lido in DeFi TVL with 39% Share

Aave has recently surpassed Lido in several key metrics, marking a significant shift in the decentralized finance (DeFi) landscape. Aave, a leading DeFi lending and borrowing platform, has outpaced Lido, a prominent liquid staking solution, across all measured indicators. This development has sparked discussions within the crypto community about the implications for both platforms and the broader DeFi ecosystem.

Aave's ascent can be attributed to its robust lending and borrowing protocols, which have attracted a substantial user base and liquidity. The platform's innovative features, such as flash loans and rate switching, have further enhanced its appeal. In contrast, Lido's focus on liquid staking, while innovative, has not been able to match Aave's comprehensive suite of financial services.

The competition between Aave and Lido highlights the evolving nature of DeFi. As more users and developers enter the space, platforms are continually innovating to stay ahead. Aave's success suggests that a diversified range of financial services may be more attractive to users than a single, albeit innovative, feature like liquid staking.

Aave has officially crossed $775 billion in cumulative borrow volume, marking one of the largest usage milestones in DeFi history. The protocol’s borrowing curve has climbed consistently since early 2021. Founder Stani Kulechov believes that the protocol is on track to breach $1 trillion next. That vision may not be far-fetched—the protocol’s adoption shows that decentralized credit has moved from experimental to essential.

Data from Token Terminal confirmed this significant turnaround of DeFi. Aave overtook Lido Finance in Total Value Locked (TVL). At one point, Lido commanded 37% of DeFi TVL, while Aave sat at 24%. However, as of July 2025, AAVE had 39% of DeFi TVL and Lido dropped to 21%. The AAVE platform alone accounted for 22% of all DeFi TVL and nearly half, about 46% of the TVL inside the lending area. That ascent made it clear: Lido’s influence had waned, while Aave’s steady growth since March positioned it as DeFi’s new utility backbone.

At the time of writing, the price structure comparison of 4-hour charts of the two showed that AAVE was in a constant uptrend. This showed a bullish structure with higher highs and a clean trendline support, which indicated the strength of the price. In the meantime, LDO was above its trendline but lost it, having a tough time rebounding. The MACD on AAVE was bullish, but for LDO was flat, showing indecision.

AAVE gained 253% over the past 12 months, while LDO declined by 55%. The former could increase its advantage, in case of trendline support, but in case of a breakdown, the correction could start. In the case of LDO, sentiment may move with the re-take of its trendline. Therefore, as of press time, AAVE was in the lead, but it could soon decrease depending on the LDO replenishing structure or macro conditions changing.

However, the question remains whether this is just the beginning of a larger trend. Some analysts predict that Lido could bounce back, leveraging its strengths in liquid staking to regain its position. The DeFi landscape is known for its volatility, and it is possible that future developments could alter the current dynamics.

For now, Aave's lead across all metrics is a testament to its strategic positioning and user-centric approach. The platform's ability to adapt and innovate has set it apart in a crowded field. As the DeFi ecosystem continues to grow, it will be interesting to see how Aave and Lido, along with other players, navigate the challenges and opportunities ahead.