The decentralized finance sector has shown its ability to withstand significant challenges after a $292 million cyber attack on April 18 exposed vulnerabilities, according to a report by Standard Chartered. The attack, which targeted KelpDAO and subsequently affected AAVE, the largest DeFi lender, led to a sharp decline in liquidity, with deposits decreasing by approximately 38% and active loans by 31%. Despite this, the bank maintains its projection that tokenized real-world assets will reach a market capitalization of $2 trillion by the end of 2028, driven by the continued growth of DeFi lending and stablecoin liquidity.
The report highlights the resilience of the DeFi sector, with AAVE and other firms committing over $300 million to stabilize the system and accelerate structural upgrades, including AAVE's V4 upgrade and the forthcoming Ethereum Economic Zone, aimed at reducing reliance on cross-chain bridges, a common target in major crypto hacks.