Aave v4 deposits on Ethereum surpass $50M, doubling in just one month

Aave v4 has seen rapid early adoption on Ethereum, with deposits topping $50 million as of May 9, 2026 — a 100% rise from roughly $25 million a month earlier, per DeFiLlama. The conservative, staged launch (activated by DAO vote on May 4) has limited credit lines and asset onboarding, reducing immediate risk but constraining near-term scale. The next governance vote to loosen parameters is the key catalyst that could unlock further deposit growth. Market implications: early demand validates v4’s design and could shift TVL toward Aave if parameters expand, but the March 2026 ~$50M slippage loss and ongoing MEV/liquidity risks keep a watchful tone. Competitive pressure from modular rivals (Morpho, Spark, Fluid) also tempers upside.