Aave TVL remains 43% lower after April 18 KelpDAO hack
AI Market Summary
Aave's TVL remains 43% below pre-KelpDAO hack levels (67% under the 52-week high), highlighting persistent depositor risk aversion and reduced liquidity depth for DeFi lending. Stolen rsETH used as collateral to borrow ETH created an estimated $246M combined bad debt for Aave and Compound, underscoring collateral and bridge-risk transmission. Lower TVL constrains lending capacity and can raise utilization-driven volatility across key pools.
Impact level
● Medium
Affected assets
AAVE/USDT+2.05%
AI Insight · AAVE/USDTAI Insight
▼ Bearish
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Aave’s total value locked (TVL) remains down 43% since the April 18 KelpDAO hack, and is 67% below its 52-week high. Hackers deposited stolen rsETH into Aave and borrowed real ETH against it, leaving Aave and Compound with an estimated $246 million in combined bad debt. Aave’s TVL fell from $26.4 billion before the attack to $14.9 billion, tightening lending capacity and increasing volatility pressure. The AAVE token fell about 20% the day after the incident and now trades near $89, still below pre-hack levels.
