Decentralized lending giant Aave has made history after surpassing $1 billion in tokenized real-world assets (RWAs) on its platform. The milestone underscores rising institutional participation in blockchain finance and strengthens Aave’s position at the forefront of the rapidly growing tokenization market.
Aave Reveals $1 Billion RWA Tokenization Milestone
In a recent post on X, Aave revealed that it has officially crossed $1 billion in tokenized real-world assets deposited on the platform. The protocol is the first lending platform to reach this benchmark, marking a significant moment for both the lending protocol and the broader DeFi ecosystem. Interestingly, the protocol, through its market, Aave Horizon, recorded $600 million in deposits in January 2026, but the figure doubled in less than a month.
Meanwhile, the real-world assets market is currently valued at approximately $25 billion, dominated largely by tokenized U.S. Treasury bonds and real estate products. These assets are increasingly favored for their relative stability and yield potential compared to purely crypto-native collateral.
Interestingly, Stani Kulechov, the platform’s founder, recently predicted that the RWA sector could grow into a $50 trillion market by 2050. According to Kulechov, solar energy startups alone could account for as much as $30 trillion of that projected valuation, signaling strong confidence in tokenized infrastructure and sustainable finance.
Institutional Interest and DAO Revenue Growth
The surge in RWA deposits on the lending protocol indicates that more institutional players are now entering the tokenization sector. For Aave, this milestone translates directly into higher borrowing activity and increased protocol fees. More deposits typically mean greater lending capacity, stronger liquidity, and improved revenue generation.
In fact, Aave DAO revenue surged to $140 million in 2025, reflecting robust growth across its markets. It is also worth noting that the platform had recently advanced a proposal tagged “Aave Will Win,” aimed at funneling all product revenue into the DAO treasury under a token-centric model.
The move was designed to strengthen value-accrual mechanisms and reinforce the ecosystem’s long-term sustainability. Meanwhile, coinciding with the RWA announcement, Aave deposits on Mantle surged to $350 million within just one week, further signaling renewed capital inflows across its multi-chain deployments.
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AAVE Price Action
AAVE, the governance token of the lending protocol, has responded positively to the milestone. The token climbed 1.7% over the past 24 hours, trading around $124 at the time of writing.
Interestingly, market expert Michaël van de Poppe recently stated in an X post that the token appears poised for further upside. His comments hint at growing bullish sentiment among analysts who believe that strengthening fundamentals, particularly rising institutional inflows and expanding DAO revenues, could support further price appreciation.
While broader market conditions remain a determining factor, Aave’s historic RWA milestone has injected fresh optimism into the token’s outlook, with traders closely monitoring whether the momentum can translate into a sustained breakout.
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Evans Kelvin
The CoinRemark Team
