Whales Dump Over $6 Million in AAVE as KelpDAO Exploit Triggers 20% Aave Price Drop
Aave (AAVE) fell over 20% on April 19 after the KelpDAO rsETH exploit triggered a wave of whale promoting and a document spike in ETH utilization throughout the lending protocol.
The token dropped from roughly $115 to under $92 in hours as massive holders rushed to exit positions. Aave’s ETH pool hit 100% utilization, successfully locking remaining depositors out of withdrawals.
Whales Offload Millions in AAVE
As of this writing, AAVE was buying and selling for $91.89, down by 20.44% in the final 24 hours. With this, the altcoin has retested ranges final seen on April 13.
On-chain information tracked by Lookonchain confirmed three main wallets promoting AAVE inside hours of the exploit turning into public.
- A pockets recognized as smaugvision bought 20,015 AAVE for two.06 million USDC at a mean of $103 per token.
- A second whale at deal with 0xFC56 offloaded one other 20,000 AAVE for two.05 million USDC on the similar common.
- A 3rd pockets, 0xA2E4, bought 19,666 AAVE value $1.95 million, changing the proceeds into 505.65 ETH and 10.11 WBTC at a decrease $99 common.
Combined, the three wallets dumped practically 60,000 AAVE tokens value over $6 million.
$5.4 Billion ETH Exodus
Beyond the AAVE sell-off, suppliers started pulling ether (ETH) from Aave at scale. Over $5.4 billion in ETH reportedly left the protocol inside hours.
Tron founder Justin Sun withdrew 65,584 ETH value roughly $154 million, including to the liquidity drain.
The mass withdrawal pushed Aave’s ETH utilization fee to 100%, which means the pool had no remaining liquidity for new withdrawals.
Borrowing charges are anticipated to spike sharply as the protocol’s rate of interest curve penalizes high utilization.
Whether Aave’s Umbrella backstop and the rsETH market freeze can stabilize confidence stays the central query for depositors nonetheless locked in the pool.
Aave Says Impact Limited to V3 ETH Market
Aave instructed BeInCrypto that the state of affairs is contained to the V3 ETH market solely, with V4 fully unaffected.
“On Aave’s aspect, the state of affairs is contained to the V3 ETH market solely. V4 is totally unaffected,” the Aave workforce mentioned in an e-mail shared completely with BeInCrypto.
The workforce mentioned it moved shortly with precautionary measures, freezing the rsETH reserve, eradicating its borrowing energy, and briefly lowering the loan-to-value ratio on ETH to zero.
Stablecoin reserves and all different property are working usually with no publicity to the occasion.
The put up Whales Dump Over $6 Million in AAVE as KelpDAO Exploit Triggers 20% Aave Price Drop appeared first on BeInCrypto.
