Aave’s GHO Stablecoin Surpasses $500 million in Market Capitalisation
Circulating supply tops half‑billion as adoption accelerates; holder base expands three‑fold in 2025.
Overview
According to data compiled by CoinGecko, the native stablecoin of the Aave protocol, GHO, now holds a market capitalisation of just over $500 million. The figure represents a more than 245 % increase in circulating supply since the start of 2025 and places the token’s supply consistently above the 500 million‑unit threshold as of early February.
Token‑holder analytics from Token Terminal show the number of distinct GHO accounts has risen to roughly 23,000, a ~300 % jump from the beginning of the year. The rapid expansion mirrors Aave’s broader push to embed GHO across multiple layers of its ecosystem.
Drivers of Growth
| Factor | Detail |
|---|---|
| Yield‑bearing sGHO | Launched in July 2025, the “Savings GHO” (sGHO) vault allows users to earn interest on deposited GHO. |
| Cross‑chain integration | sGHO was subsequently deployed on Arbitrum, Base, and Gnosis, with liquidity‑boosting programs run alongside partners such as Bybit and Bitget. |
| Competitive APY | Aave currently offers 5.52 % APY on sGHO deposits, outpacing the platform’s rates for Circle’s USDC (≈ 3.7 %) and Tether’s USDT (≈ 2.65 %). |
| Protocol dominance | Aave remains the largest DeFi protocol by total value locked (TVL), exceeding $30 billion across 18 chains, providing a broad user base for GHO adoption. |
The combination of higher yields, multi‑chain accessibility, and targeted incentive programmes has made GHO an attractive alternative to more established stablecoins within the Aave environment.
Market Context
GHO’s expansion places it ahead of other protocol‑issued stablecoins in the DeFi space.
- Curve’s crvUSD – launched in 2023, its circulating supply is around $307 million.
- Hyperliquid’s USDH – introduced in late September 2024, maintains a supply in the $20‑25 million range.
While GHO’s market cap has risen sharply, the native AAVE token shows a contrasting performance: it posted a modest 2.4 % gain on the day of reporting but remains more than 50 % lower than its price at the start of the year.
Analysis
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Yield as a catalyst – The 5.52 % APY offered on sGHO is a clear incentive for liquidity providers. In a climate where stablecoin yields have tightened, the premium rate helps attract capital that might otherwise stay in USDC or USDT pools.
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Strategic cross‑chain rollout – By deploying sGHO on fast‑lane L2s such as Arbitrum and Base, Aave taps into high‑throughput, low‑fee environments, lowering the barrier for users to lock GHO and earn yields. The partnerships with centralized exchanges further broaden exposure.
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Network effects of TVL – Aave’s $30 billion TVL provides a deep pool of borrowers and lenders who can naturally gravitate toward a native stablecoin that offers better returns and seamless integration with existing risk parameters.
- Competitive positioning – GHO’s supply growth outpaces its closest DeFi stablecoin peers, indicating that the market is responding positively to Aave’s incentives. However, the overall DeFi stablecoin sector remains fragmented, and sustained growth will depend on continued yield attractiveness and broader acceptance beyond the Aave ecosystem.
Key Takeaways
- $500 M milestone: GHO’s market capitalisation has more than doubled its 2024 level within a single year.
- Holder surge: The number of GHO addresses has tripled, signaling widening user interest.
- Higher yields: Aave’s sGHO APY (5.52 %) remains the most generous among major stablecoins on the platform.
- Cross‑chain presence: Integration on Arbitrum, Base, and Gnosis expands accessibility and liquidity.
- Competitive edge: GHO now leads DeFi‑native stablecoins in supply, outpacing crvUSD and USDH.
- AAVE token outlook: Despite daily gains, the governance token is still down over 50 % year‑to‑date, reflecting broader market pressure.
As Aave continues to refine its incentive structures and deepen sGHO’s integration across additional chains, the stablecoin’s trajectory will be a key barometer for the health of protocol‑backed assets in the broader DeFi ecosystem.
Source: https://thedefiant.io/news/defi/aave-gho-stablecoin-market-cap-breaks-usd500-million
