AAVE fluctuated 20.3% within 24 hours, surging to $116.08 before falling back to $96.53: KelpDAO rsETH vulnerability triggers AaveV3 bad debt panic
Bitget Pulse2026/04/19 02:32Brief Overview of Volatility
Over the past 24 hours, AAVE's price quickly dropped from a high of $116.08 to a low of $96.51, with the current quote at $96.53, marking an overall amplitude of 20.3%. The 24-hour trading volume is about $117 million, larger than the previous day but without extreme anomalies.
Analysis of Reasons Behind the Fluctuation
- KelpDAO rsETH Vulnerability Incident: On-chain reports indicate that KelpDAO's liquid restaking token rsETH may have been attacked, with losses estimated between $100M and $293M. The attacker used stolen rsETH as collateral in Aave V3 and borrowed a large amount of ETH. As rsETH's value collapsed, these positions faced huge bad debt risks, directly causing AAVE's price to drop more than 10% in 15 minutes.
- Brief Boost from Earlier V4 Launch: 24 hours ago, AAVE briefly surged by 7% due to the V4 upgrade and a $350M protocol fund injection, but panic selling dominated after the incident was revealed.
Market Views and Outlook
The mainstream sentiment in the community has shifted to panic. Discussions on X focus on the impact of rsETH bad debt on Aave TVL and confidence in DeFi. Bears dominate in the short term, warning of further downside to the $88 support level. Some analysts suggest that if bad debts are managed well, V4 still has long-term potential, but risk aversion is advised for now.
Note: This analysis is automatically generated by AI based on public data and on-chain monitoring, for informational reference only.Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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