AAVE drops sharply to $91.82 after a 26.5% fluctuation in 24 hours: KelpDAO rsETH exploit incident triggers bad debt panic.

Volatility Brief

In the past 24 hours, the price of AAVE reached a high of $113.19 and a low of $89.51. It is currently at $91.82, with an overall fluctuation of 26.5%, showing a pattern of initial rally followed by a sharp drop. 24-hour trading volume surged to approximately $870 million–$920 million. CEX net outflow was about 6 million AAVE, with an overall net outflow of $2.69 million, and TVL fell 21.6% in one day to $20.7 billion.

Brief Analysis of the Cause of the Anomaly

- Kelp DAO rsETH Exploit Incident: Over the past 16 hours, Kelp DAO suffered a loss of $292 million due to an attack. The attacker used rsETH as collateral in Aave V3 to borrow a large amount of ETH, sparking concerns about bad debt and causing the AAVE price to plummet by 12%–20%.

- Aave Response: Aave quickly froze the V3/V4 rsETH markets. Founder Stani Kulechov confirmed the protocol contracts were not affected, but market panic had already triggered sell-offs.

- Whale Sell-Offs: After the incident, whales dumped over $6 million in AAVE, further accelerating the decline.

Market Views and Outlook

The prevailing sentiment in the community is fear, with X discussions focusing on DeFi risk exposure and the vulnerabilities of liquid restaking protocols. In the short term, a bearish outlook persists with possible downside to the $103 support level and warnings of further bad debt. If Aave confirms no systemic risk and rebounds to the $113 resistance, a relief bounce may occur, but trading volume confirmation is needed.