Aave was trading at $93.45 on Wednesday, up 1.06% in the past 24 hours. However, the token is still down 7.09% on a weekly basis and around 11% over the past month.
the Crypto market It rose by 2.28 to 2.61 trillion. Following the temporary ceasefire between the US and Iran, risk appetite has improved, with geopolitical tensions easing across markets.
Aave TVL loses $15 billion after KelpDAO hack
The recent KelpDAO hack has shaken the world of decentralized finance. Investors quickly pulled capital from lending platforms following the rsETH bridge incident on April 18. In three and a half days, Aave documented approximately $15.1 billion in outflows.
Before the attack, total deposits at Aave were approximately $48.5 billion. As of April 22, that number has dropped to about $30.7 billion. Nearly a third of the platform’s capital left within less than a week. This exploit reportedly left Aave with approximately $196 million in bad debt.
Other lending protocols were also in the line of fire. Morpho’s total value locked decreased to 10.2 billion from 11.7 billion. This equates to about 1.5 billion withdrawals during that period.
According to DeFiLlama data, the broader declines were observed in decentralized lending platforms. The total value locked in Aave has also fallen significantly in other market estimates. Investor confidence has been undermined as traders respond to security and increase their level of risk exposure.
The boxes rotate towards the spark
DC gave up on Aave and Morpho, but Spark was the beneficiary. SparkLend’s total value locked has risen to $3.2 billion. This represents about 1.3 billion in new inflows amid market turmoil.
On-chain data indicates the transfer of assets by depositors in search of perceived safety. The TVL of Spark allegedly increased by hundreds of millions of dollars in a matter of days. Migration puts the focus on the competitive dynamics of decentralized lending.
However, whale accumulation activity rose despite outflows around the AAVE token. Major investors appear to be taking a stance on a potential recovery. Bitcoin price rose more than $78,000 on broader risk. Ethereum price also rose above $2,300, improving the overall mood.
Will AAVE price hold $90 support or decline?
At the time of writing this report, it was Aave trading price At $93.77 on the four-hour chart.
The four-hour MACD chart has become positive. The MACD line is trying to cross bullishly above the signal line.
Meanwhile, the Relative Strength Index is close to 46. The index is below 50 which is neutral.
The next upside target is $100 if buyers break above $96. A clear break above 100 could leave the way to $108. Above this level, $116 will be a medium-term resistance level.
Negatively, not keeping $90 could re-uncover $88. A failure below $88 could lead to a move towards $84.
