Aave, a decentralized finance (DeFi) protocol, has achieved a record total value locked (TVL) exceeding $40.3 billion on May 12, marking the highest for any DeFi protocol to date. The total value locked represents the cryptocurrency deposited into Aave's smart contracts, with the latest version, Aave v3, holding substantial amounts. Recent growth has been driven by user deposits and the price surge of Ether (ETH), which skated from approximately 1.5 million ETH to nearly 10 million ETH from the start of 2025 to May 12. Aave's TVL climbed significantly due to rising Ether prices, which increased from under $2,500 to around $2,500 over the span of a month. Aave's native token, AAVE, also saw a 25% price rise within the week leading up to this milestone, reflecting a positive trend in the overall crypto market. Analysts suggest that these developments solidify Aave's leading position in the lending sector of DeFi.

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