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Aave is quietly becoming a bigger destination for tokenized gold, and the numbers are getting harder to ignore. Deposits of Tether Gold (XAUT) on Aave have jumped from about $40 million in early June to $76.7 million, a roughly 91.7% increase. That makes Aave the largest DeFi venue for tokenized physical gold based on the data provided.
Aave Turns Tokenized Gold Into Working Capital
The interesting part isn’t simply that more gold is sitting on Aave. XAUT can now be used inside lending markets, allowing users to deposit gold-backed tokens as collateral and borrow stablecoins such as USDT or USDC.
That opens the door to strategies that look more like traditional leveraged finance than the old DeFi playbook. Users can retain exposure to gold while borrowing capital, or use borrowed stablecoins to acquire more XAUT. Global uncertainty and elevated gold prices are cited as drivers behind the growing demand.
Still, bigger deposits don’t automatically mean risk has disappeared. Leverage works both ways, and tokenized assets remain tied to the underlying market.
Aave Lending Activity Keeps Building Too
The XAUT surge arrives alongside substantial lending activity across the platform. Active loans across Aave V4 setups are approaching $150 million, with $130.9 million borrowed against $389.1 million supplied.
Stablecoin utilization across Aave markets is also running high. More than $7.40 billion has been borrowed against $8.98 billion supplied, putting utilization at roughly 82.5%.
That’s meaningful because higher utilization suggests capital isn’t simply sitting idle. It’s being put to work across the protocol.
AAVE Price Nears Its Bigger Technical Test
The AAVE price has recovered from a June low near $60 and is currently holding above $85. Meanwhile, the gap around its 20-day EMA is shrinking, suggesting improving bullish momentum.
The bigger hurdle sits near $108, where the 200-day EMA currently acts as resistance. A clean break above that level could strengthen the recovery setup. For now, though, Aave has the fundamentals and onchain activity moving in the right direction, while the $108 level remains the market’s more immediate test.
Source: www.kucoin.com