White House policy changes! Aave becomes the biggest winner. How can a 50 billion deposit fortress reconstruct the trillion-dollar RWA market? |RWA trillion dollar vulnerability |DeFi swallows traditional banks

White House policy changes! Aave becomes the biggest winner. How can a 50 billion deposit fortress reconstruct the trillion-dollar RWA market? Aave's deposits exceeded 50 billion! How DeFi giants swallowed up the traditional financial landscape In the early morning of July when the traditional financial world has not yet fully awakened, the decentralized lending agreement Aave quietly crossed the net deposit threshold of $50 billion, becoming the first DeFi project to achieve this epic milestone. This figure is more than just a record – it symbolizes that institutional funds are pouring into DeFi at an unprecedented rate, and Aave has become the biggest winner in this wave with its multi-chain expansion and product innovation. --- 01 Data surges, Aave leads the wave of DeFi revival. After years of silence in crypto winter, Aave is recovering lost ground at an astonishing speed and setting a record high. According to the latest data from The Block, the total net deposits of Aave protocol exceeded the $50 billion mark for the first time on July 14, an increase of more than 300% from the October 2023 low. This figure covers the total collateral assets of the 34 chain market minus outstanding borrowings, demonstrating Aave’s undisputed scale advantage. In sync with the surge in deposits is the strong performance of Aave tokens. On July 15, the price of AAVE once exceeded US$330 and finally closed at US$316, with a single-day increase of 8%. What’s even more amazing is the long-term trend - AAVE soared by 88% in the past month, becoming the well-deserved leader in the DeFi sector. The core engine driving this growth is Aave's multi-chain expansion strategy. From BNB Chain, ZKsync Era to emerging networks such as Sonic and Mantle that will be integrated, each deployment brings about $200 million to $300 million in liquidity injection. This "chain group effect" has enabled Aave's total lock-in value (TVL) to exceed US$30 billion, accounting for more than 20% of TVL in the entire DeFi market. Table: Overview of Aave's key indicators growth | Indicators | Value | Growth situation | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The v3.1 and v3.2 upgrades launched in 2024 significantly optimize risk management and capital efficiency, while the upcoming V4 version will introduce revolutionary functions such as modular markets and account abstraction. The most eye-catching thing is the stunning debut of its stablecoin GHO. On July 15, GHO was launched on the Ethereum main network for only 48 hours, and its total minting value exceeded US$2.5 million. This over-collateralized stablecoin is supported by diversified assets such as ETH and AAVE. It currently has circulating 2.61 million coins, anchored around US$0.99. Its success marks that Aave has broken through the boundaries of pure lending business and built a complete money market ecosystem. What attracted traditional financial institutions even more attention was the promotion of the Horizon project - the plan allows institutions to borrow stablecoins with real-world assets (RWAs) such as tokenized real estate and money market funds. This innovation seamlessly connects on-chain liquidity with traditional financial assets, opening the floodgates for the trillion-dollar RWA market. Technical indicators also confirm AAVE's bullish trend. CoinDesk analysis confirmed: - The key support level is in the range of $304.25-$305.63, forming a solid price foundation - The resistance cluster is at $327.40, and the upward space is fully opened after the breakthrough - Trading volume surged to 159,078 units, indicating that institutional funds continue to flow in --- 03 Policy winds, regulation breaks the ice and reshapes the industry structure in Washington, DC, a regulatory change that concerns the fate of DeFi is brewing. In early July, the White House Office of Management and Budget (OMB) publicly supported the SJRes.3 bill, aiming to repeal the IRS’ strict “DeFi broker rules.” The rule has required the DeFi protocol to collect user transaction information and report income, which has brought heavy compliance burdens to platforms such as Aave. Senator Cynthia Lummis said bluntly: "The IRS regulations fundamentally misunderstand how decentralized technology works." The White House’s change in position means that the US DeFi project may usher in a more relaxed development environment. At the same time, the advancement of the GENIUS Act has created unique opportunities for Aave. Digital asset management company 21Shares pointed out in its latest report: "As the largest lending platform in the decentralized finance field, Aave may become the main beneficiary of the bill." The bill's friendly framework for decentralized protocols will allow Aave to gain significant advantages over centralized opponents in compliance. The direct effect of regulatory loosening has emerged: Aave currently holds 5% of the market's stablecoin supply, and the proportion used to earn more than any other DeFi protocol. This fund aggregation effect will be further accelerated after the supervision becomes clear. --- 04 Token revolution, the value capture mechanism is fully upgraded. On March 4, the Aave community proposed a subversive "Aavenomics" token economic model reform, marking a qualitative leap in its value capture capabilities. The core of the plan is to launch a token buyback using more than $115 million in DAO cash reserves—an initially implemented at a weekly scale of $1 million for six months. The exquisiteness of the repurchase mechanism lies in the improvement of triple value: - Reduce circulation supply: Directly shrink AAVE circulation through secondary market repurchase - Enhanced pledge income: allocate repurchase tokens to StkAAVE and StkBPT holders - Funding efficiency optimization: Terminate the LEND migration contract and recover residual tokens worth $65 million. At the same time, the agreement launches Anti-GHO reward tokens, allocating 50% of GHO stablecoin revenue to pledgers. Based on the current GHO lending scale, additional revenues can be generated per year, allowing AAVE holders to enjoy real agreement dividends. This series of economic changes is right at the right time. With the probability of the Fed hike in July as high as 96.7%, the attractiveness of traditional financial market yields has declined, and Aave's innovative return mechanism is attracting a large number of institutional capital seeking returns. --- 05 In the future journey, the goal of a thousand yuan and a trillion yuan vision. When we stretch the camera further, Aave's growth trajectory will become more magnificent. Technical analysis shows that AAVE has broken through the key resistance level of US$295, with a short-term target of US$325, and is expected to challenge the US$400 mark in the medium term. The long-term forecast is more optimistic - it may exceed $853 by 2028 and aim to reach the peak of $1,387 in 2031. Table: Pricing forecasts of authoritative institutions for AAVE (USD) | Year | Changelly | DigitalCoinPrice | CoinCodex | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- RWA scale: Leveraging trillion-level traditional financial markets through tokenizing real-world assets. In the wave of recovery of DeFi's total locked warehouse value approaching US$120 billion for the first time since December 2024, Aave has quietly built an unshakable moat with its 50 billion deposit fortress, innovative stablecoin matrix and token economic revolution. When traditional financial institutions began to adopt them as lending infrastructure, Aave's journey was no longer to replace traditional finance, but to become the underlying agreement for the future financial system. --- As the Fed's interest rate hike cycle is coming to an end, more than $115 million of repurchase funds are ready to be released, the deflation mechanism of the AAVE token is about to be launched. The regulatory warm wind from Washington has greatly reduced Aave's institutional risks in the US market. When traditional financial institutions' balance sheets begin to allocate GHO stablecoins, and when pension funds enter Aave's liquidity pool through RWA, this DeFi revolution truly completes the identity conversion from subversion to dominant.