A recent $292 million exploit on April 18 has put decentralized finance (DeFi) to the test, but according to Standard Chartered, the sector has shown it can withstand significant challenges. The hack, which affected KelpDAO and had a ripple effect on AAVE, the largest DeFi lender, led to a sharp decline in liquidity and a bank-run-like scenario, with deposits and active loans plummeting by 38% and 31%, respectively. Despite this, the bank remains optimistic about the future of tokenized real-world assets, predicting they will reach a $2 trillion market cap by the end of 2028, driven by growth in DeFi lending and stablecoin liquidity.
The report's author, Geoff Kendrick, head of digital assets research at Standard Chartered, noted that 'tokenised real-world assets (RWAs) will reach a market cap of $2 trillion by end-2028, up from $35 billion in October 2025.' The incident highlights the ongoing risks associated with hacks and exploits in the crypto space, which can erode trust and undermine the growth of the ecosystem. However, the swift response from AAVE and other DeFi firms, who committed over $300 million to stabilize the system, has helped to normalize conditions and mitigate the damage. The bank believes that this incident will accelerate 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 common target for major crypto hacks.