Aave Faces Challenges Amid Whale Accumulation and Bad Debt

Aave has experienced significant whale accumulation, despite facing challenges from a reported exploit involving KelpDAO's rsETH bridge on April 18, which left Aave with approximately $196 million in bad debt. According to NS3.AI, data from DeFiLlama indicates that Aave's total value locked (TVL) decreased from $26.39 billion to $15.6 billion. Meanwhile, Spark's TVL increased by over $880 million, reaching $4.7 billion, as depositors moved their assets away from Aave. Analyst Moreno noted that larger spot order sizes and extreme fear readings are reminiscent of previous accumulation zones, although the final outcome remains uncertain.