Aave drew about 155,000 monthly active users in February, setting a new record for the DeFi lending protocol. The figure was almost double that of six months earlier, according to Token Terminal data. The increase came as more investors looked for yield in decentralized lending.
That growth arrived during a tense period for Aave’s governance. Even so, the protocol’s lending and borrowing activities kept going as usual. Aave now holds nearly $27 billion in total value locked across 20 blockchains, according to DeFiLlama. Its governance token, AAVE, traded near $107 and remained well below its 2021 all-time high of $661, according to CoinGecko data.
The rise in users reflects a wider change in crypto market behavior. Investors appear to be moving away from trades that once offered easier returns.
Sean Dawson, head of research at on-chain options platform Derive, told Decrypt that the decline of the basis trade has pushed users elsewhere. He said investors once earned between 10% and 30% by holding sUSDe. That return has now dropped below 4%.
With fewer low-risk yield options available, capital has started flowing into lending platforms. Dawson said that dynamic has made decentralized lending one of the few remaining choices for users seeking steadier returns.
Peter Chung, head of research at Presto Labs, told Decrypt that Aave’s role in DeFi also helps explain the continued growth. He said many DeFi firms still look experimental, but a small number have become core parts of on-chain finance. In his view, Aave is one such platform.
The jump in activity comes as Aave faces internal strain. Last week, the Aave Chan Initiative said it would wind down operations. The group claimed addresses tied to Aave Labs influenced the outcome of the “Aave Will Win” temperature check vote.
That proposal involved $51 million in funding and passed with 52.58% support. ACI founder Marc Zeller said the result would have changed without votes linked to Aave Labs, including a 111,000 AAVE delegation from founder Stani Kulechov.
The group’s exit statement said there was little room for an independent service provider when the biggest budget recipient could influence approval of its own proposal. Soon after, BGD Labs, the team behind Aave’s V3 codebase, also stepped away after strategic disagreements with Aave Labs. Two major contributors left in quick succession.
Also Read: Crypto News Today: Aave Hits US$1 Trillion as DeFi Lending Reaches New Scale
Despite the governance dispute, on-chain activity continues normally. Still, the market has reacted with caution. AAVE traded around $105.64, while its RSI stood at 38.66, a level that suggests the token is nearing oversold territory.
Analysts said a move above the upper Bollinger Band at $125.54 could open the door to a rally toward $135 or even $140. For now, traders remain focused on whether AAVE can reclaim higher resistance levels.
At the same time, downside risk remains. A drop below $105.55 could send the token toward $103.59 or the key $100 mark. Whale activity and thin liquidity have added to recent swings. Recovery may depend on whether AAVE can break back above $122, but governance uncertainty still hangs over the protocol. What happens if user growth keeps rising while confidence in governance keeps slipping?
Aave users reached a record 155,000 in February as investors moved toward DeFi lending for yield. Even with governance tensions and token weakness, protocol activity remains strong. The main takeaway is clear: traders now watch user growth, TVL, and key price levels to judge Aave’s next move.