AAVE Price Plunges After Kelp DAO Hack: What Happened?

The price of AAVE just took a sharp dive following the hack at Kelp DAO. A lot of investors are wondering about the AAVE hack Kelp DAO and why the harga AAVE turun so suddenly. As the biggest lending platform in DeFi, AAVE always draws attention. 

Let's break down the facts clearly and completely. We pulled the latest market data so you can understand exactly what happened with AAVE after the hack.

Key Takeaways

• The Kelp DAO hack stole rsETH worth $293 million through the LayerZero bridge on April 18-19, 2026.
• AAVE's TVL dropped nearly $8 billion, falling from $26.4 billion to around $18.6 billion.
• AAVE's price fell about 20 percent in 25 hours, sliding from $112 down to roughly $89.50.

Register at Bittime now and start trading crypto with a fast, safe, and easy process in the app.

What Is the Kelp DAO Hack and How Did It Happen?

Let's start from the beginning so everything is clear. Kelp DAO is a restaking protocol on the Ethereum network. It lets users stake their ETH and receive rsETH tokens as proof of ownership. Those rsETH tokens can then be used across many DeFi apps.

Over the weekend of April 18 to 19, 2026, attackers found a vulnerability in the LayerZero bridge connecting Kelp DAO to other networks. They managed to drain 116,500 rsETH tokens. The total value stolen reached $293 million. Right after the theft, the attackers deposited the stolen rsETH as collateral on Aave version 3.

On Aave v3, they borrowed a huge amount of wrapped ETH, or WETH. Because the collateral came from stolen assets, it created roughly $195 million in bad debt. Bad debt means loans that are hard to recover because the collateral value does not cover them.

Important point: Aave itself was not hacked. Its smart contracts stayed secure. The issue arose because DeFi platforms are all connected. When the stolen rsETH entered Aave, the lending system came under pressure. Many users panicked and started withdrawing their funds. As a result, liquidity in several pools dropped sharply.

Aave responded quickly. They froze the rsETH markets on versions 3 and 4. They also temporarily froze WETH reserves on chains like Ethereum, Arbitrum, Base, Mantle, and Linea. The goal was to stop further withdrawals and protect other users.

This event became the first real test for Aave's new Umbrella security feature. That feature is designed to handle bad debt automatically. Earlier in April 2026, Aave had parted ways with its risk-management partner over differences about Aave v4. Even so, the Aave team showed fast and transparent action.

For anyone new to DeFi, DeFi stands for decentralized finance. It means all transactions happen through smart contracts without a middleman bank. The rewards can be high, but so can the risks, such as bridge hacks or collateral manipulation. The Kelp DAO case reminds us that every protocol must keep improving its security. 

Read also : The White Whale Price Prediction 2026: Can WHITEWHALE Coin Reach $0.01?

Impact of the Hack on AAVE Price and TVL

Right after the hack, the effects hit the market immediately. AAVE's price dropped almost 20 percent in a short time. From around $112 on Saturday afternoon, the token fell to $89.50 by Sunday night. This was one of the fastest drops in recent months.

Why did AAVE turun so quickly? First, investors worried about the platform's stability. Even though Aave was not directly hacked, its big name caused people to sell right away. Second, many whales or large investors pulled out funds. For example, the MEXC exchange withdrew $431 million and Abraxas Capital pulled $392 million in a short period.

AAVE's TVL also plunged. Total Value Locked, or TVL, is the total amount of assets locked in the protocol. Before the hack, AAVE's TVL stood at $26.4 billion. After the event, it fell to about $18.6 billion. That means a drop of nearly $8 billion in just days.

This TVL decline caused Aave to temporarily lose its spot as the top DeFi platform. Even the USDT and USDC pools hit 100 percent utilization. That means $5.1 billion in stablecoins stayed locked until new liquidity arrived or debts were repaid.

On the other side, the broader crypto market felt the ripple. Other protocols such as Curve Finance, Ethena, and BitGo's Wrapped Bitcoin paused bridge activities linked to rsETH. It shows how fast risk can spread across the DeFi ecosystem.

For everyday retail investors, moments like this often create panic. But if we look at historical data, AAVE has recovered from similar pressure before. Its all-time high price once topped $600 in 2021. So this drop is not the end of the story.

Right now, AAVE is trading between $88 and $90, or roughly 1.5 million rupiah. The 24-hour trading volume actually rose quite high because many people traded during the volatility. It shows the market is still active, even with the lower price.

Read also : Kelp DAO Attacked for $293 Million: Key Lessons from the Biggest DeFi Hack of April 2026

Price Analysis of AAVE After the Event: What Can We Expect?

Now let's dig deeper into the AAVE analisis harga after this incident. First, the positive factors. Aave has a strong liquidation model. It has successfully avoided large bad debt thanks to overcollateralization. That means the value of collateral is always higher than the loan amount.

Second, the Aave team showed commitment through the new Umbrella feature. It can automatically manage bad debt. Their quick response in freezing assets also builds trust. Many analysts in AAVE crypto news called this a stress test that was passed successfully.

Third, AAVE's fundamentals remain solid. Circulating supply is about 15.39 million tokens out of a total 16 million. Market cap still sits around $23 trillion rupiah. The remaining TVL is still large compared to competitors.

However, some risks need watching. If the bad debt is not resolved quickly, more selling pressure could follow. Also, overall crypto market sentiment plays a role. If Bitcoin falls, altcoins like AAVE usually follow.

Here are some important points that can serve as your guide:

1. Keep an eye on official updates from the Aave team on their social media and forums.
2. Check TVL movement daily to see liquidity recovery.
3. Watch the price of rsETH and whether the LayerZero bridge is secure again.
4. Diversify your portfolio so you are not too dependent on one asset.
5. Use analysis tools such as price charts on CoinMarketCap or CoinGecko to spot support levels.

Overall, the AAVE price drop 2026 looks temporary. Many experts believe that once liquidity returns to normal, the price could rebound. Of course, there are no guarantees in crypto. Always do your own research and only invest money you can afford to lose.

This event also teaches the importance of security in DeFi. Investors are becoming more aware that choosing protocols with a strong track record like AAVE is a smart move.

Read also : Kelp DAO Bridge Drained for 292 Million Dollars, rsETH and Aave Hit Hard

Conclusion

Even though the AAVE price dropped after the Kelp DAO hack AAVE, the platform showed real strength with its fast response and solid security features. The dampak Kelp DAO hack was felt, but it also opens chances for AAVE to grow even stronger in the future. 

If you are holding AAVE, stay calm and keep following the latest updates. Crypto is full of ups and downs, but with good knowledge, we can navigate it with more confidence. We hope this article helped you understand the current situation. Stay updated!

FAQ

What caused the main drop in AAVE price?

The Kelp DAO hack created bad debt on Aave v3, so many investors withdrew funds and sold AAVE tokens.

Was AAVE hacked directly?

No. Aave was only affected because the attackers used stolen assets as collateral on their platform.

How big was the drop in AAVE TVL?

TVL fell by nearly $8 billion, from $26.4 billion down to around $18.6 billion.

What did AAVE do to handle the problem?

They froze the rsETH markets and WETH reserves on several chains to stop further losses.

Will AAVE price recover?

Many analysts are optimistic that the price can rebound once liquidity normalizes, but it depends on overall market sentiment.

How to Buy Crypto on Bittime?

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.