Aave Deposits Slide Below $30B as KelpDAO rsETH Flaw Sparks $16.2B Outflows

Aave's total deposits have fallen below the closely watched $30 billion threshold, underscoring how quickly liquidity can retreat in decentralized finance when security fears take hold. Data show total supplied funds on the lending protocol declined to $29.6 billion from $45.8 billion, implying cumulative outflows of $16.2 billion over the period. The pullback followed the KelpDAO rsETH vulnerability incident, which appears to have dented confidence across connected DeFi markets and prompted users to reduce exposure. The episode highlights a familiar pattern in crypto: even when an issue originates in an adjacent protocol or asset, risk aversion can spread rapidly. Large holders often move first when uncertainty rises, particularly where liquid staking tokens or leveraged positions are involved. In Aave's case, the retrenchment amounts to more than a third of deposits leaving in a relatively short span. Aave remains one of DeFi's most tracked lending venues, but the latest figures reinforce how sensitive the sector remains to security-related events. Market participants will watch whether deposits stabilize and inflows return as a signal that confidence is rebuilding. Continued withdrawals, by contrast, could weigh on lending activity and the platform's growth outlook. Wu Blockchain reported the figures in a post dated April 23, 2026.