Aave’s onchain dashboard shows user deposits on V4 at $806 million, a 30% increase over the past seven days and the first time the version has moved above the $800 million mark. The latest figure sets a new all-time high for deposits on the protocol’s newest architecture.

The rise extends a sharp August buildout for V4. Deposits passed $500 million on Aug. 19, crossed $600 million on Aug. 21, and then advanced beyond $800 million six days later, according to the dashboard data cited in the report.

Rapid growth through late August

The latest totals point to a concentrated expansion across several V4 markets rather than a single isolated pool. Ethereum V4 deposits alone moved above $500 million on Aug. 25, underscoring how quickly capital accumulated on the network during the second half of the month.

At the market level, Ethereum Core was the largest V4 deployment with $378 million in deposits. EtherFi Cash on Optimism ranked second at $257 million, followed by Ethereum Global Dollar at $75 million and Ethereum Prime at $63 million. Avalanche Core and Ethereum Plus held $18 million and $15 million, respectively.

Borrowing activity is rising alongside deposits

V4 is not only attracting supplied assets. The dashboard also showed $216 million in active loans, indicating that the new version is supporting borrowing demand as liquidity grows.

Within EtherFi Cash, loans totaled $62 million. The report said weETH collateral was backing WETH borrowing there at 92% utilization, a sign of heavy use in that market as deposits and lending activity both expanded.

Deposit composition across assets

The asset mix on V4 was led by weETH at $97 million and USDG at $90 million. WETH and USDC were tied at $81 million each, while liquidETH stood at $77 million.

Other notable assets included liquidUSD with $58 million and WBTC with $54 million. Together, those balances help explain how V4’s growth has been spread across both crypto-native collateral and dollar-linked instruments.

V4 remains smaller than Aave’s established version

Despite the recent surge, V4 still sits far below Aave V3 in absolute size. Aave’s V3 dashboard showed $31 billion in user deposits, compared with $806 million for V4, and Ethereum Core alone accounted for $25 billion on V3.

The two versions also handle liquidity differently. According to the report, V4 uses a hub-and-spoke model in which hubs centralize liquidity and accounting, while spokes apply separate borrowing rules and risk limits for specific markets.

What comes next for EtherFi Cash

As of Aug. 27, the EtherFi Cash market had been live for two weeks and was progressing toward a $500 million lending-capacity target. That market has become one of the main contributors to V4’s early growth, especially on Optimism.

The next confirmed milestone to watch is whether V4 can sustain its recent pace while the newer markets continue to scale. For now, the onchain dashboard shows a version that has quickly pushed to a fresh deposit record but still has a long way to go before matching V3’s footprint.

Source: thedefiant.io