Aave TVL Plunges Following KelpDAO Hack 15 Billion- What’s Next for AAVE Price?

Frank bevah
Updated
Frankbevah is a senior crypto market analyst and stock Journalist with four years of industry experience. He focuses on in-depth market analysis, emerging trends, and real-time developments across cryptocurrency and equity markets.
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Aave TVL Plunges Following KelpDAO Hack 15 Billion- What’s Next for AAVE Price?

Highlights

  • AAVE price tests support as investors assess recovery prospects.
  • Huge TVL outflows transform the competitive environment in DeFi lending.
  • Technical signs warn of slowing down movement of momentum following sudden drop.

Aave price hovered at $93.45 on Wednesday, rising 1.06% over the past 24 hours. The token, however, remains down 7.09% week over week and nearly 11% over the past month. 

The crypto market has increased by 2.28 to reach 2.61 trillion. Following a temporary ceasefire between the US and Iran, risk appetite has improved, as geopolitical tensions are relieved across markets.

Aave TVL Plunges $15 Billion After KelpDAO Hack

The most recent KelpDAO hack has caused ripples in the world of decentralized finance. Investors quickly pulled out capital on lending platforms after the April 18 rsETH bridge incident. In three and a half days, Aave documented around $15.1 billion in outflows.

Aave TVL Plunges Following KelpDAO Hack 15 Billion- What’s Next for AAVE Price?
Source: Aave tvl

Prior to the attack, the aggregate deposits of Aave were approximately 48.5 billion. As of April 22, that number dropped to approximately $30.7 billion. Approximately a third of the capital of the platform left within the span of less than a week. The exploit is said to have left Aave with almost $196 million bad debt.

Other lending protocols too were in the line of fire. The total locked value of Morpho decreased to 10.2 billion as compared to 11.7 billion. That equates to approximately 1.5 billion withdrawals over that time.

According to the DeFiLlama data, the wider decreases are observed on decentralized lending platforms. The overall value locked in Aave also dropped considerably in other market estimates. The confidence of investors was undermined as traders responded to the issue of security and the increase in the level of risk exposure.

Funds Rotate Toward Spark

Capital deserted Aave and Morpho, but Spark was a beneficiary. The total value locked of SparkLend went up to 3.2 billion USD. That is about 1.3 billion of new inflows in turmoil of the market.

Aave TVL Plunges Following KelpDAO Hack 15 Billion- What’s Next for AAVE Price?
SparkLend data

On-chain data indicate a move of assets by depositors in search of perceived safety. The TVL of Spark has allegedly increased by hundreds of millions of dollars in a matter of days. The migration puts into focus the competitive dynamics of decentralized lending.

Whale accumulation activity has gone up in any case despite the outflows around AAVE tokens. The big investors seem to be taking a position towards a possible recovery. Bitcoin price surged over $78,000 in the wider risk-on. Etherium also soared above $2,300, which favors the general mood.

Will AAVE Price Hold $90 Support or Drop Lower?

At the time of writing, the Aave price traded at $93.77 on the four-hour chart. 

The four-hour MACD histogram has gone positive. The MACD line is trying a bullish cross over on top of the signal line. 

In the meantime, the Relative Strength Index is close to 46. The indicator is less than the neutral 50.

Aave TVL Plunges Following KelpDAO Hack 15 Billion- What’s Next for AAVE Price?
Source: Tradingview

The next upside target is at $100 in case the buyers go beyond $96. A clear break out above 100 may leave the way to $108. Above that mark, $116 will be a medium-term resistance level.

Negatively, not holding $90 can re-expose $88. The failure below the level of $88 may lead to action towards $84.

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Frequently Asked Questions (FAQs)

1. What impact did the exploit have on Aave’s balance sheet

Reports suggest the incident left Aave with nearly $196 million in bad debt.

2. Which platform benefited from the capital rotation?

SparkLend gained significant inflows, with its TVL rising by about $1.3 billion.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

AAVE

Aave

$93.1200 1.14999997616% (24h)

24 Hours volume

$279.89M

Market Cap

$1.4B

Max Supply

NA

Buy $AAVE with MEXC
About Author
About Author
Frankbevah is a senior crypto market analyst and stock Journalist with four years of industry experience. He focuses on in-depth market analysis, emerging trends, and real-time developments across cryptocurrency and equity markets.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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