Institutional Interest Drives DeFi Lending Growth: 72% Increase in Total Value Locked

Decentralized finance (DeFi) lending protocols have surged in total value, rising 72% YTD to $127 billion in cumulative total value locked. The growth is attributed to institutional adoption of stablecoins and tokenized real-world assets (RWAs). Maple Finance and Euler saw a significant rise, with Maple Finance experiencing a 586% increase. Binance Research believes DeFi lending protocols will further capitalize on institutional adoption of stablecoins and tokenized assets.

Decentralized finance (DeFi) lending protocols have seen a remarkable surge in total value, rising by 72% year-to-date (YTD) to $127 billion in cumulative total value locked (TVL). This growth can be attributed to the increasing institutional adoption of stablecoins and tokenized real-world assets (RWAs) [1].

Aave, a leading DeFi protocol, has achieved a significant milestone by exceeding $1 billion in total fees collected over a period of three years. This marks a substantial lead over its closest rival, Venus, with fees amounting to $1.1 billion dollars and a 55.2% share [1]. Aave's impressive performance underscores the growing demand for decentralized lending services and the broader expansion of the DeFi ecosystem.

In addition to its fee milestone, Aave has also seen a 100% growth rate in fees over the past 90 days and maintained about 65% of the active loan volume. This indicates growing adoption and institutional interest in DeFi lending protocols [1].

Further driving this growth is the launch of Aave Labs' Horizon platform, which permits stablecoin loans backed by tokenized RWAs. The platform launched in partnership with Centrifuge, Circle, Ethena, and VanEck [2]. Horizon is designed to provide 24/7 borrowing infrastructure that meets institutional standards, drawing insights from Aave's institutional DeFi framework, Arc.

The launch of Horizon follows a rise in institutional adoption of stablecoins and growing interest in tokenized RWAs. Financial firms such as BlackRock and Franklin Templeton have already launched tokenized funds, while JPMorgan is testing tokenized transactions via its Kinexys blockchain. This trend highlights the potential for DeFi lending protocols to attract more institutional users, particularly in markets like the U.S. where demand for yield on digital assets remains high [2].

Maple Finance and Euler also saw significant rises, with Maple Finance experiencing a 586% increase in TVL. Binance Research believes DeFi lending protocols will further capitalize on institutional adoption of stablecoins and tokenized assets, indicating a promising future for the DeFi lending market [1].

References:

[1] https://www.cryptotimes.io/2025/09/02/defi-lending-protocol-aave-hits-1-billion-fee-milestone/
[2] https://www.fxstreet.com/cryptocurrencies/news/aave-launches-institutional-stablecoin-lending-platform-horizon-in-partnership-with-centrifuge-circle-others-202508272050