This post is for educational and informational purposes only and must not be constructed as containing investment advice. The blogger who wrote this post is not a financial advisor, depending on your country and local regulation, you should seek advice from the appropriate financial advisors to ensure you are informed about the risks.
Status: ongoing writing.
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Last update: Mar 14, 2026
Summary
1- Category
2- Utility
3- Supply
4- the protocol
5- DeFi metrics
6- Market capitalization
7- Ecosystem
7-a- ecosystem - Contributor
Bored Ghosts
chaos labs
7-b- ecosystem - Delegator
7-c- ecosystem - Regulatory
7-d- ecosystem – technology arm
8- Stakeholders
8-a- Borrowers
8-b- Exchange traded funds
8-c- Holders
8-d- institutional
9- Aave ups and downs
9-a- Aave appp
- individuals
- traders
- businesses
- corporate
- institutional investor
9-b- Aave crypto
- Governance
- Buyback program
- Development - innovation
- new crypto listing
- new crypto listing – tokens holders
- new crypto listing – Blockchain network
- Parameters setting
- Ecosystem Reserve
10- where to trade Aave?
10-a- Buy
10-b- Sell
11- How to stay informed about Aave?
Summary
there is no isolated small shop in small street corner operating as a bank, who will trust the guy siting there. People will go deposit their saving in the bank with the tallest headquarters because they think that their money is safe there.
Big organization such as banks are not designed to care about the small guy, a lot of people hate big banks and want to replace them. Once blockchain bank start to fail, which is possible, people will hate blockchain banks!!!
An entire blockchain bank, that could be interesting. Aave is a blockchain version of the lending and borrowing business, but it is deployed in different terms than those employed in the banking sector.
big money at play for Aave, lending and borrowing is the main nerve in the banking sector, they choose the worst. Aave should probably stop growing this business, let other DeFi platforms share the poisonous cheesecake, and diversify in other fields, such as insurTech and PropTech.
I wonder what bonds traders think about Aave, what auditors specialized in lending and borrowing will say about Aave. I think that Aave Labs should go public through an IPO as soon as possible, for transparency and acountability.
Allocating no more than 0.5 % of an entire crypto portfolio to Aave is i think the way to go, depending on the size of the portfolio.
1- Category
Aave is used as the center of gravity of Aave protocol governance. Aave is used to vote and decide on the outcome of AAVE IMPROVEMENT PROPOSALS (AIPs). Apart from this, Aave can be staked within the protocol safety module to provide a backstop in the case of a shortfall event, and earn incentives for doing so.
2- Utility
- Governance,
- Staking,
- Payment,…
3- Supply
| AAVE | |
|---|---|
| Circulating supply | 13,000,000 |
| ecosystem reserve | 3,000,000 |
| capped supply | 16,000,000 |
4- the protocol
Aave is a decentralized non-custodial liquidity protocol where users can participates as suppliers or borrowers. Suppliers provide liquidity to the market while earning interest, and borrowers can access liquidity by collateral that exceeds the borrowed amount. List of assets that can be deposited or borrowed can be found HERE.
5- DeFi metrics
Aave is a lending and borrowing protocol, it belong to the DeFi (decentralized finance) category. Usualy the market capitalization is used to compare cryptocurrencies which still true for Aave, but in the DeFi it self the TVL (Total Value Locked) makes sens, it refers to the total value of digital assets that are currently staked or locked in a decentralized finance (DeFi) protocol or platform. According to DefiLlama as of Mars 12, 2026 Aave is largest protocol by TVL with $25.221B, followed by LIDO with $18.944B.
6- Market capitalization
According to coinmarketcap as of Mars 10, 2026 Aave rank 42 with a market capitalization of $1.7B.
7- Ecosystem
7-a- ecosystem - Contributor
Bored Ghosts
Bored Ghosts was a web3 development initiative that aimed to contribute to Aave.
chaos labs
chaos labs serves leading DeFi protocols, crypto-native organizations, and select digital-asset institutions, including customers like Aave, Jupiter, and GMX,...
7-b- ecosystem - Delegator
The Aave-Chan Initiative (ACI) was a delegate platform, it aimed to participate in governance discussions on Aave and create snapshot votes & AIPs to be submitted to community vote for the benefit of the Aave protocol.
7-c- ecosystem - Regulatory
Push is the Aave Labs subsidiary that secured crypto-asset service provider (CASP) license under the European union’s markets in crypto-assets regulation (MICAR) from the central bank of ireland.
7-d- ecosystem – technology arm
Aave Labs
Aave Labs is the original author and contributor to Aave. The Aave Protocol is governed by the Aave DAO, not Aave Labs. Token holders propose and vote on all key changes. Aave Labs contributes proposals and code, but decisions are made by the community.
8- Stakeholders
8-a- Borrowers
Aave customers include other blockchains, protocols and institutional such as :
| Collateral | Loan | |
|---|---|---|
| World liberty financial | $52M | $7.5M |
| Ethereum foundation | $2M | |
| Galaxy digital |
8-b- Exchange traded funds
Asset managers providing exposure to Aave without the crypto wallet complications of owning and managing cryptocurrencies:
| ETF | Asset manager | AUM | as of |
|---|---|---|---|
| 21shares Aave ETP | 21shares | 6,015,085.04 | Mars 11, 2026 |
| Global X Aave ETP | globalx | 66,404.00 | Mars 11, 2026 |
8-c- Holders
| AAVE | |
|---|---|
| Circulating supply | 12,448,369 |
| Circulating supply - Aave DAO treasury | 551,631 |
| ecosystem reserve | 3,000,000 |
| capped supply | 16,000,000 |
8-d- institutional
the Aave Horizon RWA Market enables institutional entities to leverage their regulated assets to access the liquidity of the DeFi ecosystem within a compliant framework.
9- Aave ups and downs
we need to separate two different things here, Aave the lending and borrowing app and the Aave the crypto.
9-a- Aave app
Aave is a solution to a treasury problem, a cash problem, a liquidity problem. This problem is faced by individuals, traders, businesses, corporate, institutional,…
- individuals
an employee can need money to make ends meet. Let’s say someone is working for a company and is getting payed $10,000.00 USD every end of the month but he end up receiving a bank transfer from his employer every first week of the month, between the 3rd and the 6th.
Let’s say we are march 14, 2026, the same employee has no saving, but he hold 20 ETH he bought on Oct 8, 2025 for $4,500USD and he got some unexpected bills to pay, so he spend $9,500.00 USD from the $10,000 USD from the bank transfer he received on the first week of february and now he has $500USD, which is not enough to cover his expenses until he get paid on the first week of April.
The employee can not sell his ETH because the price is half what it was on October 2025, so he need a $5,000 USDT loan, and Aave can provide that.
- traders
let’s say john is a trader who bought 10 ETH for $4,500USD on October 2025, today Mars 14, 2026 john got some bills to pay and he need money, he can not sell his ethereum, because the price now is $2,000USD, if he do, he will loose half his initial investment, which is catastrophic for him. Aave can help him with that, john can get a USDT loan if he give his ETH as a collateral.
- businesses
Let’s say an electric vehicles battery maker holding 100 ETH, but you have no money in the bank and you have to pay some bills before Mars 20, 2026. Aave can help this battery maker with that, they can get a USDT loan if they give their 100 ETH as a collateral.
- corporate
let’s say you are a treasurer working for a holding company, the holding has 4 subsidiaries each working in a specific sector :
- - gaming,
- - social media,
- - adtech,
- - edtech…
every morning, using data from bank accounts and treasury inflows and outflows timeline you are refreshing treasury plans of the holding and the 4 subsidiaries, pooling cash from subsidiaries that have surplus cash, sending bank transfer to subsidiaries that need cash and investing the remaining cash in the money market.
Mars 13, 2026, the situation is bad ! The treasury plans reveal that the group of companies need $1M by Mars 17, 2026.
the holding company invested in 100 ETH on October 2025 and has no intention to sell them because they are a strategic long term investment for the holding. Aave can help this group of companies with that, the holding can get a USDT loan if he provide their 100 ETH as a collateral.
- institutional investor
let’s say David is working for a real estate investment trust as a CFO, the company has many multi-family residential complex, retail and office buildings. following an earthquake, the company had to do some repair and maintenance. At the end of all repair work, David is getting a $10M bill he must pay on Mars 20, 2026.
the REIT has a large diversified portfolio including tokenized treasury bonds, David compare all liquidity cost and opportunity alternatives and think that Aave is the most efficient one.
He plan to get a loan from Aave by providing some of the REIT tokenized treasury bonds as collateral.
9-b- Aave crypto
Aave has a capped supply, so supply through issuance of new Aave tokens has less influence on Aave price. The focus should be on demand for Aave, the question here is where the demand for Aave crypto came from ?
Well, there’s a demand from pure investors, traders or speculators. If we put aside those, what constitute organic demand for the Aave crypto ? Or, why would someone want to buy Aave crypto ?
- Governance
governance.aave.com allows Aave tokens holders to participate in governance, it means that a holder can publish an AIP (Aave improvement proposal) on the governance forum and vote on proposals made by other holders.
Many of the proposal can have a financial impact on Aave lending and borrowing platform users, specially if the users is a large lenders or borrower on the platform, this include proposals on :
- - Loan fees reduction,
- - rewards for Aave token holders,
- - new crypto listing on Aave app as collateral,….
- Buyback program
token holders can vote on proposals for increase or reduction of Aave buyback budget, this in theory can have two kinds of impact on Aave crypto price :
- - buyback increase : reduction of Aave crypto market supply, leading to Aave price going up,
- - buyback decrease : maintain a large market supply of Aave tokens, leading to Aave price going down,
basically an Aave tokens speculator can be interested in buyback increase, but this can repel other users and push to the competitor LIDO.
- Development - innovation
Aave is operating in a very large market, and transaction speed can attract institutional. blockchain banking just started and there is a lot at stake. Aave can be JP morgan chase or blackrock in the future, if they do everything right.
Aave token holders investing for the long term can vote for the development of features or apps that can attract new users. By doing so they can increase Aave crypto market price.
The question here is if institutionals are interested in participating in Aave governance!?
- new crypto listing
- new crypto listing – tokens holders
if a corporate structure hold a large amount of a token ABC that is not listed on Aave, it can make a proposal to list ABC as a collateral to facilitate their access to liquidity on Aave.
- new crypto listing – Blockchain network
in theory, a blockchain network growth manager will seek opportunities for revenue growth and can consider making a proposal for the deployment of Aave on his employer network.
- Parameters setting
token holders can propose and vote on proposal related to the lending and borrowing platform parameters such as risk level and ratios. This case is important for insuring that a loan will be recovered even if user fail to repay and the assets provided as collateral lost their value in a crashing crypto market for example.
In the banking sector those ratio are defined through frameworks such as BASEL III that sets requirements and international standards for mitigating risk of bank failures and bank runs.
A platform like Aave have to deal with two kind of users, those who wants to get more USDT for their collateral, and those who wants to give less to borrowers for the collateral borrowers provided, because they fear loosing their assets put in common basket.
Users will have to buy Aave to vote depending on their risk posture.
- Ecosystem Reserve
Aave tokens holders can vote on ecosystem reserve increase which can lead to reduction of Aave market supply and push the price up.
10- where to trade Aave?
I recommend using BloFin.com, a crypto trading solution that provides an easy-to-use, secure and reliable trading experience to beginners and experienced traders.
BloFin allow users to trade +500 cryptocurrencies and provide services and features such :
- - DCA,
- - trading bots,
- - demo trading,
- - copy trading,
- - staking,….
To start trading Aave you need to Sign up, you can use this LINK to quickly register as a user with no KYC needed, or use this checklist if you are interested in getting more details.
Once you are registered you can follow steps bellow to start trading Aave:
As a beginner you should start using 2 order types:
- Market order : allow trader to buy or sell immediately at the best available price in the market,
- Trigger order : trigger orders convert to market order when ever a specific condition is met,
10-a- Buy
- go to spot tab,
- click on spot,
- select AAVEUSDT,
- go to the order panel (trade) on the right side,
- click on buy,
- select order type,
- enter the order amount,
- review the order details,
- click AAVE Buy,…..
10-b- Sell
- go to spot tab,
- click on spot,
- select AAVEUSDT,
- go to the order panel (trade) on the right side,
- click on sell,
- select order type,
- enter the order amount,
- review the order details,
- click AAVE sell,….
11- How to stay informed about Aave?
Here you can find a list of resources to stay informed about Aave.
11-a- Aave News:
11-b- Limited access / require subscription:
| News Outlet | |
|---|---|
| 1 | bloomberg.com/search?query=aave |
| 2 | forbes.com/search/?q=aave |
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