Lenders deposit funds into Aave and receive interest payments from borrowers (supply-side fees).

Aave is a non-custodial lending protocol built on Ethereum and other adjacent blockchains. Aave was founded by Stani Kulechov and launched in 2017.

AAVE tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Aave’s investors include ParaFi Capital, Framework Ventures, Three Arrows Capital, etc.

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Aave

Aave | Data breakdown

# Aave Circulating asset market cap Methodology

## 1. Overview

Circulating asset market cap measures the total value of assets tokenized on-chain within the Aave ecosystem, specifically focusing on the GHO stablecoin. This metric represents the net outstanding supply of GHO available in the open market, excluding tokens held within the protocol's treasury or reserve vaults. It is calculated by multiplying the net circulating supply by the end-of-day price of the asset.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events for the GHO token contract, covering Ethereum
- **External data**: End-of-day price feeds for GHO and asset metadata

## 3. Step-by-step calculation

### Component A: GHO issuance and redemption tracking

- **Purpose**: Determine the total gross supply of GHO by monitoring minting and burning activity
- **Logic**: ERC-20 `Transfer` events for the GHO contract are parsed to identify issuance and redemption. Mints are identified as transfers originating from the null address, while burns (redemptions) are identified as transfers sent to the null address or the dead address. These quantities are aggregated to establish the total supply issued by the protocol.
- **Key fields**: `from_address`, `to_address`, `amount`

### Component B: Protocol-held supply tracking

- **Purpose**: Identify GHO tokens held within the Aave GHO vault to exclude them from the circulating supply
- **Logic**: ERC-20 `Transfer` events involving the Aave GHO vault address are monitored. Transfers into the vault (inflows) are treated as additions to protocol-held supply, while transfers out of the vault (outflows) are treated as reductions. The net balance of GHO within these specific protocol addresses is calculated as the protocol-held supply.
- **Key fields**: `from_address`, `to_address`, `amount`

### Component C: Net circulating supply calculation

- **Purpose**: Calculate the amount of GHO actually circulating in the market
- **Logic**: The net circulating supply is derived by subtracting both the total burned supply and the current protocol-held supply from the total minted supply. A fill-forward logic is applied to ensure supply values are maintained for every day in the time series, even on days without transfer activity.
- **Key fields**: `outstanding_supply`, `protocol_held_supply`

### Component D: USD conversion and final aggregation

- **Purpose**: Convert the net supply into a USD-denominated market capitalization
- **Logic**: The net circulating supply is normalized by decimal precision. This value is then multiplied by the end-of-day price feed for the asset. The final values are aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `price_usd`, `block_timestamp`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Tokenized asset value / AUM (assets under management) — price times circulating supply.

AaveAAVE

Circulating asset market cap

Circulating asset market cap

Competitive landscape

Chain breakdown