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      Tether's USDT Deposits on Aave V3 Increase by $526 Million Amid Rising DeFi Demand

      Tether's USDT deposits on Aave V3 have surged by $526 million over the past three months, reflecting a renewed demand for stablecoins in decentralized lending. This increase raised the total USDT deposits on Aave V3's Core market from $1.93 billion to approximately $3.03 billion between May and late July, marking a total deposit increase of $1.1 billion when considering the overall trajectory.

      The majority of the new USDT supply was absorbed by borrowers, with $717 million linked to active loans. By July, active USDT loans on Aave V3 reached $2.5 billion, a rise of $400 million within a single month. Inflows peaked at over $600 million in just 11 days, prompting the protocol's governance to respond by increasing USDT supply caps.

      Aave's community has passed several proposals to raise these supply caps, with one significant vote in June raising the limit to $3.48 billion due to utilization rates frequently hitting between 90% and 97%. As of late August, the supply-side annual percentage yield (APY) for USDT on Aave V3 was around 3.15%, with the platform accounting for approximately 63% of all USDT deployed across decentralized finance (DeFi) lending protocols.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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