DEFI LIQUIDITY CRISIS: IS SOLANA NEXT AFTER $178M USDC DRAIN SHOCK?
The fallout from the KelpDAO exploit is spreading fast, and now Solana is feeling the pressure. Capital is fleeing across chains, and Kamino’s USDC markets are flashing extreme stress signals. One reserve pool holding roughly $178M has hit full utilization, meaning liquidity is completely drained.
At the same time, borrowing demand is exploding. Multiple vaults are now running above 95% utilization, forcing deposit yields to spike as protocols scramble to attract fresh capital. This is not normal market behavior. It is a clear sign of imbalance where demand for stablecoins is overwhelming available supply.
When liquidity dries up this quickly, volatility usually follows.
So is this just a temporary shock or the start of a deeper DeFi liquidity crunch?