Aave’s ETHLend 2026 Relaunch to Support Native BTC & ETH
In November 2025, Aave founder Stani Kulechov announced on X the full relaunch of ETHLend in 2026, reviving the original on-chain P2P lending protocol that accepted native BTC collateral without wrapped tokens. Launched in April 2017, ETHLend pioneered direct borrower-lender matching, any ERC-20 collateral, atomic swaps for true BTC, and a decentralized order book before evolving into Aave V1 in 2020 (LEND to AAVE at 100:1). The 2026 ETHLend relaunch aims to restore these features, bridge Bitcoin and Ethereum liquidity, and lower cross-chain risks. Traders should monitor shifts in DeFi liquidity, increased competition among lending platforms, and potential demand spikes for ETH, AAVE, and native BTC collateral markets.
Bullish
The relaunch of ETHLend under Aave’s ecosystem signals renewed innovation and expanded liquidity products, likely driving both short-term trading interest and long-term protocol adoption. In the short term, anticipation of native BTC collateral lending can spur speculative buying of AAVE as traders position for higher platform usage. Over the long term, restoring P2P lending features and bridging Bitcoin-Ethereum liquidity may strengthen network effects, increase platform TVL, and create sustained demand for AAVE tokens. As a result, market sentiment around Aave and its token leans bullish.