The post Whales Accumulate AAVE as Retail Flees Amid KelpDAO Exploit Fallout appeared on BitcoinEthereumNews.com. Aave (AAVE) showed signs of large-scale accumulationThe post Whales Accumulate AAVE as Retail Flees Amid KelpDAO Exploit Fallout appeared on BitcoinEthereumNews.com. Aave (AAVE) showed signs of large-scale accumulation

Whales Accumulate AAVE as Retail Flees Amid KelpDAO Exploit Fallout

2026/04/22 15:14
Okuma süresi: 2 dk
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Aave (AAVE) showed signs of large-scale accumulation even as the protocol grappled with the aftermath of a major exploit that triggered sharp outflows and price declines.

The activity follows an April 18 exploit of KelpDAO’s rsETH bridge. That incident reportedly left Aave with roughly $196 million in bad debt.

Whale Activity Rises as AAVE Faces Fallout From KelpDAO Exploit

The KelpDAO incident has rattled market confidence across the Decentralized Finance (DeFi) sector. Data from DeFiLlama shows that Aave’s Total Value Locked dropped from $26.39 billion to $15.6 billion, marking a decline of over $10 billion.

On-chain flows show depositors rotating from Aave into rival lending protocol Spark. Spark’s TVL has climbed by over $880 million to $4.7 billion during the same window.

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Aave TVL Decline. Source: DeFiLlama

Despite the drawdown, market structure signals point to a notable shift beneath the surface. A key metric, Spot Average Order Size, which measures the average size of executed spot trades, has begun to climb.

The analyst noted that previously, every major cluster of elevated whale spot orders has coincided with a local or market bottom in AAVE. Similar patterns were observed during the 2022 bear-market lows, the mid-2023 consolidation phases, and subsequent corrections through 2024 and early 2025.

While these phases did not always mark immediate reversals, they consistently aligned with zones where “asymmetric risk/reward setups emerged.”

In addition, sentiment metrics now read at their worst levels since the 2022 bear market. Thus, social sentiment data points to peak fear.

However, the outcome remains uncertain. The trajectory of AAVE will likely depend on how the protocol addresses the estimated $196 million deficit and whether large-order activity persists in the $85–$95 range. A sustained cluster of elevated trade sizes would more closely resemble prior accumulation phases.

For now, the market reflects a divergence: retail-driven outflows amid early indications of strategic positioning by larger players.

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The post Whales Accumulate AAVE as Retail Flees Amid KelpDAO Exploit Fallout appeared first on BeInCrypto.

Source: https://beincrypto.com/aave-whale-accumulation-kelpdao-exploit-fallout/

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