Aave V3 captures 79% of $873M USDT0 deposits in DeFi

Nearly four out of every five dollars of USDT0 sitting in DeFi protocols live inside Aave V3. The lending giant controls 78.6% of the roughly $872.7 million in USDT0 deposits across decentralized finance, a concentration of stablecoin liquidity that would make most traditional banks jealous. That number becomes even more striking when you zoom out. Aave V3’s share of the combined USDT and USDT0 total value locked sits at approximately 62.8% of $6.1B across 29 protocols, translating to about $3.83B in stablecoin deposits under its roof. The numbers behind the surge Over a roughly 90-day stretch leading into late July 2026, net USDT deposits on Aave V3’s Core market jumped by $526 million. That pushed holdings from $1.93B to approximately $3.03B, a 57% increase in about three months. Utilization rates on the platform frequently exceed 90%. Those sky-high utilization rates have forced Aave’s governance to keep pace. The protocol’s community passed several votes to raise supply caps, including a June 2026 increase that pushed the ceiling to $3.48B. USDT0 and the cross-chain factor USDT0 itself deserves some explanation. Launched in early 2025, it’s essentially Tether’s omnichain versio...