The exploit highlights vulnerabilities in DeFi protocols, increasing market volatility and investor anxiety, impacting Ethereum's stability. KelpDAO exploit creates $236M bad debt risk for AAVE, Ethereum drops 3%.
A major security breach rocked the decentralized finance space on April 18, 2025, as crypto investigator ZachXBT flagged a sophisticated exploit targeting KelpDAOs rsETH liquid restaking token, resulting in an estimated $292 million in losses and triggering sharp declines across related assets. According to on-chain analysis, the attacker exploited a cross-chain vulnerability to mint between $280 million and $300 million worth of rsETH on EigenLayer.
Aave has surged more than 30% since Monday, making it one of the standout performers in a market that has been searching for momentum. The move is drawing attention — and raising a question that is worth examining carefully: is this a genuine recovery, or a relief bounce after one of the most turbulent stretches in the protocol's recent history?
Aave approved a major governance reset, boosting its 2026 outlook with clearer revenue flows, tokenholder value capture, and buyback support.
Aave price has rallied over 7% this week amidst a surge in institutional interest and critical governance breakthroughs. Will it extend gains now that it has confirmed a bullish reversal pattern on charts?
Aptos (APT), up 3.8% since Tuesday, joined Aave (AAVE) as a top performer.
Aave approved the “Aave Will Win” proposal, which redirects 100% of revenues from all its branded products to the protocol's DAO. The vote ended the dispute that began in December 2025, when the Labs division silently diverted swap fees away from the community treasury.
The proposal directs 100% of application and product revenue back to AAVE token holders, resolving a governance dispute that began when swap fees were quietly redirected away from the DAO treasury in late 2025.
AAVE has snapped its recent downtrend with an intraday 8% surge, pushing price back toward the $96 mark as buyers stepped in decisively near the $90–$95 demand zone. The move follows a prolonged phase of controlled selling, where price consistently printed lower highs before stabilizing near support.
AAVE demand is strong, but price depends on sustained value capture.
Aave's landmark AWW proposal unifies protocol and application revenue under one AAVE token asset.
AAVE price prediction shows potential recovery to $94-96 range by month-end as RSI remains oversold at 34.90, with critical support at $84.75 and resistance at $99.17.