BroadChain, April 23, 22:34, according to NewsBTC, DeFi is experiencing its toughest week in recent times. On April 19, the Kelp DAO protocol was attacked due to a staking system vulnerability. The attacker minted rsETH without depositing any ETH, then used it as collateral on Aave to borrow real ETH and stablecoins, resulting in potential bad debts of up to $230 million. Although the incident lasted only a few hours, the chain reaction it triggered is still unfolding.
According to data from XWIN Research Japan, Aave's total value locked plummeted from approximately $45 billion to $30 billion within three days, a 33% decline corresponding to $15 billion in capital flight. USDT and USDC borrowing rates surged from 3.4% to 14%, while USDe supply contracted by 14% over the same period. AAVE token holders are accelerating transfers to exchanges, with significant selling pressure. This is not simply a price correction but a systemic withdrawal of confidence—users are leaving not due to price declines but because of fundamental doubts about the protocol's security design.
AAVE is currently trading in the $90-95 range, with the daily chart showing consistently lower highs and lower lows since the end of 2025, and both the 50-day and 100-day moving averages sloping downward. After a brief rebound to $110-115, the price was quickly suppressed with increased selling volume. If $90 is lost, the next support level is $80; on the upside, a strong recovery above $110 is needed to challenge the downtrend, otherwise any rebound will remain corrective in nature.