Aave V4 deposits reached a record $806 million on Aug. 27, marking a 30 percent increase over seven days. Active loans within the protocol's newest iteration climbed to $206 million during the same period.
The surge extends a rapid August advance. V4 deposits more than doubled in less than four weeks, rising from near $350 million at the start of the month to $500 million on Aug. 19 and exceeding $600 million two days later. Over the six days following Aug. 21, the system added more than $200 million in deposits.
Deposits on Ethereum alone surpassed $500 million on Aug. 25, according to Aave's on-chain dashboard.
Aave V4 segments capital across several markets, each with distinct collateral rules, borrowing limits and risk settings. Ethereum Core represents the largest market, holding $378 million, or about 47 percent of all V4 deposits. EtherFi Cash on Optimism follows with $257 million, bringing the combined total for these two markets to $635 million, nearly 79 percent of the version's deposits.
Other significant V4 markets include Ethereum Global Dollar with $75 million, Ethereum Prime with $63 million, Avalanche Core with $18 million and Ethereum Plus with $15 million.
Borrowing activity has risen in parallel with deposits. The EtherFi market contributes $62 million of the $206 million total, as users deposit wrapped EtherFi staked Ether (weETH) as collateral to borrow wrapped Ether (WETH).
The EtherFi market currently shows a utilization rate of 92 percent. Utilization measures the portion of deposited assets actively borrowed, a metric that affects both liquidity providers and borrowers. High utilization increases returns for suppliers but raises borrowing costs and reduces immediately available liquidity for withdrawals.
Ether staking and restaking tokens compose a significant portion of collateral in Aave's largest leveraged positions. WeETH alone represents roughly 42 percent of collateral in these positions, while WETH accounts for approximately 73 percent of the debt they hold. Average health factors for this group stood near 1.06, and debt-to-equity ratios were close to 10.7 times. A health factor below 1 triggers automatic liquidation under Aave's rules.
