A recent $292 million cyber attack on April 18 has pushed the DeFi sector to its limits, but it has managed to bounce back, according to a report by Standard Chartered. The bank describes the sector as “bent, not broken” in the face of this challenge. The attack, which targeted KelpDAO and had a ripple effect on AAVE, the largest DeFi lender, led to a significant liquidity crisis, with deposits plummeting by 38% and active loans decreasing by 31%. Despite this, the bank remains optimistic about the sector’s growth prospects, predicting that tokenized real-world assets will reach a market cap of $2 trillion by the end of 2028.
According to Geoff Kendrick, head of digital assets research at Standard Chartered, “We still expect tokenized real-world assets to reach a market cap of $2 trillion by end-2028, up from $35 billion in October 2025.” The report highlights the risks associated with hacks and exploits in the crypto space, which can undermine trust in the system and lead to significant losses. However, the swift response by AAVE and other DeFi firms, which committed over $300 million to stabilize the system, has helped to restore confidence.
The incident has also accelerated structural upgrades, including AAVE’s V4 upgrade and the forthcoming Ethereum Economic Zone, aimed at reducing reliance on cross-chain bridges, a common target for hackers.