A recent $292 million hacking incident on April 18 exposed DeFi to systemic risks, but the sector has shown it can withstand significant challenges, according to Standard Chartered. The exploit, which affected KelpDAO and had a ripple effect on AAVE, the largest DeFi lender, led to a sharp decline in liquidity, with deposits and active loans dropping by approximately 38% and 31%, respectively. Despite this setback, Standard Chartered maintains that tokenized real-world assets are on track to reach a $2 trillion market capitalization by the end of 2028, driven by the growth of DeFi lending and stablecoin liquidity.
The bank's head of digital assets research, Geoff Kendrick, 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 persistent risks associated with hacks and exploits in the crypto space, which can undermine trust in code-based systems. However, the swift response from AAVE and other DeFi firms, who committed over $300 million to stabilize the system, has helped to restore confidence. The bank believes that this incident will 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 for major crypto hacks.