A recent $292 million hack on April 18 has shaken the DeFi sector, but it has shown its ability to withstand the impact, according to Standard Chartered. The hack, which affected KelpDAO and spilled over into AAVE, the largest DeFi lender, led to a sharp decline in liquidity, with deposits falling by 38% and active loans by 31%.
However, the sector's quick response, led by AAVE, has helped stabilize the system, with yields easing and deposits recovering. Despite the risks associated with DeFi, including hacks and exploits, Standard Chartered still expects tokenized real-world assets to reach a $2 trillion market cap by the end of 2028, driven by growth in DeFi lending and stablecoin liquidity. The bank's head of digital assets research, Geoff Kendrick, stated that the sector's resilience and ability to adapt to challenges will be key to its future growth.
The incident has also accelerated structural upgrades, including AAVE's V4 upgrade and the forthcoming Ethereum Economic Zone, which aim to reduce the sector's reliance on cross-chain bridges, a frequent target in major crypto hacks.