Aave’s V3 deployment on Monad crossed $100 million in deposits within 48 hours of its July 3 launch, marking one of the fastest adoption rates in the protocol’s history. The market, which opened with 12 supported assets including GHO, USDT0 and cbBTC, saw over $75 million flow in on the first day, partly fueled by $15 million in incentives from the Monad Foundation. The influx helped push Monad’s total value locked to an all-time high of $477 million.
Meanwhile, Aave V4 surpassed $250 million in total deposits, reflecting strong user interest in the upgraded lending features and improved capital efficiency. However, a significant portion of those funds migrated from Aave V3, making fresh capital inflows essential for sustained growth. Encouragingly, new deposits continue to arrive alongside the migrated assets, and cbETH deposits nearly quadrupled to around $70 million from roughly $18–$20 million in May, bolstering borrowing capacity and collateral diversity.
Institutional participation added another bullish layer: deposits of Invesco’s tokenized U.S. Treasury fund (USTB) on Aave jumped 300% quarter-over-quarter in Q2, strengthening the protocol’s real-world asset narrative. The combination of rapid TVL growth and institutional inflows has lifted AAVE’s price toward the $100 mark, with the token recently trading near $96 and bulls eyeing resistance at $99.28 and a Fibonacci extension target of $117. Coinglass data shows retail longs outweigh shorts, though whale accounts have been building short positions, setting up a tug-of-war that could determine the next leg of AAVE’s trajectory.
