Aave Founder Believes that Declining Rates Could Ignite DeFi Revival

TheCryptoTimesОпубліковано о 2025-10-01Востаннє оновлено о 2025-10-01

While speaking at Token2049 in Singapore, Aave’s Founder and CEO, Stani Kulechov, stated that low interest rates will aid growth of decentralized finance (DeFi). Kulechov also believes that tokenized real-world assets (RWAs) will become increasingly important in the future of DeFi, particularly as regulations become more favorable.

“I think every single rate cut by a central bank, whether it’s by the Fed or ECB … is basically additional arbitrage for these DeFi yields,” Kulechov said during a discussion. “As rates are gonna go down, we’re gonna see a really good bull market for DeFi yield.”

Kulechov’s comments align with the novel trends in the DeFi space. In August 2025, Ethereum’s price jumped to a new high of $4,953 following increasing institutional demand and notable inflows in spot Ethereum ETFs. Additionally, the “capital rotation” from Bitcoin to Ethereum has helped its ecosystem total value locked (TVL) rise by 41% to more than $90 billion, as per DeFillama data. 

Aave at the forefront in the DeFi space

In the first week of September, Aave achieved a milestone by exceeding $1 billion in total fees collected over a period of three years. Furthermore, it achieved a 100% growth rate in fees over the past 90 days and held about 65% of the active loan volume. 

On September 24, Galaxy, a financial services firm, turned to Aave to manage its treasury, improve borrowing efficiency, and build structured DeFi products tailored for large-scale institutional use. Galaxy stated that it chose the platform because of strong liquidity, attractive borrowing rates, and clear risk principles. 

Also Read: Telegram CEO Pavel Durov Says Bitcoin Helped Fund His Lifestyle 

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