Aave’s Lending Recovery Faces a New Test as V4 Expands Beyond DeFi

Aave is attempting to build new sources of borrowing demand through cryptocurrency-backed payments, tokenized equities and institutional credit, even as its established lending business remains substantially smaller than a year ago. The decentralized lending protocol recorded its third consecutive month of growth in September, with total value locked (TVL) averaging $31.4 billion and outstanding loans reaching $12.6 billion, according to Token Terminal’s September 2026 report, shared in X . Yet the recovery remains uneven. Deposits increased 13.9% from August, while active loans grew 8.1%, leaving both measures more than 55% below their September 2025 levels.

Source: Crypto News Flash