The DeFi sector experienced a major shake-up after a $292 million hack on April 18, but it managed to withstand the impact, according to a report by Standard Chartered. The attack, which originated from KelpDAO and spread to AAVE, the largest DeFi lender, led to a sharp decline in liquidity, with deposits dropping by approximately 38% and active loans by 31%, creating a bank-run-like scenario. However, the sector's resilience was underscored by AAVE's swift response and the introduction of new safeguards, which helped stabilize the system.
Standard Chartered maintains its projection that tokenized real-world assets will reach a $2 trillion market cap by the end of 2028, driven by the continued growth of DeFi lending and stablecoin liquidity. The report highlights the sector's ability to adapt and evolve in the face of challenges, with AAVE and other DeFi firms committing over $300 million to stabilize the system and accelerating structural upgrades, such as AAVE's V4 upgrade and the forthcoming Ethereum Economic Zone, aimed at reducing reliance on cross-chain bridges, a common target for major crypto hacks.