$AAVE TVL Drops $17.2B Following Kelp Exploit 📉
Aave reportedly saw Total Value Locked drop by $17.2 billion after fallout from the Kelp exploit situation. Capital appears to be rotating into safer positions.
Why it matters: TVL is a confidence metric. Large outflows can show users are reducing exposure.
Signals: • Risk-off behavior in DeFi
• Lending sector pressure
• Fear spreading beyond one project
My view: Aave remains one of DeFi’s strongest names, but short-term sentiment damage matters.
What traders watch: • TVL stabilization
• Borrow demand return
• Token support zones
If confidence returns fast, dip buyers may step in. If not, DeFi weakness may continue.
Sometimes strong protocols get punished for sector fear, not their own mistakes. 👀
$ZKJ
$DAM
#AAVE #StrategyBTCPurchase #downtrend