Aave had a particularly steep decline over the past 24 hours, down 11% and trading at $90.25. That drop was steeper than that of the crypto market, which fell by about 2.25% over the same period. The financial move shows a definitive change in investor trends, with capital withdrawing from higher-risk investments. This loss came at a time when overall market sentiment was somewhat off.
The market pulse has turned cautious, especially against the backdrop of rising geopolitical tensions. Disruptions to key global trade corridors have increased uncertainty. As a result, funds are increasingly flowing back into relatively safer assets in the crypto space. Bitcoin has been one of the main beneficiaries of this shift, and altcoins have faced increasing selling pressure.
Aave plunges amid rsETH hack
The recent security incident related to rsETH has added yet another layer of pressure. Aave confirmed that rsETH on the Ethereum mainnet remains fully collateralized. Still, the protocol has taken precautions. The item is frozen in multiple versions of the platform. This includes Aave V3 and V4 implementations.
Update on rsETH incident:
According to our analysis, rsETH is fully supported on the Ethereum mainnet.
Out of an abundance of caution, rsETH remains frozen on Aave V3 and V4 and exposure to the incident is limited.
WETH reserves also remain frozen in affected markets, including…
— Aave (@aave) April 19, 2026
Additionally, the Wrapped Ethereum reserve has been suspended in the affected markets. These include Ethereum, Arbitrum, Base, Mantle and Linea.
The decision has been made to prevent further risks while the situation is assessed. The team has stated that it is actively studying the issue and working on possible solutions. The attacker spoofed LayerZero cross-chain messages to withdraw 116,500 rsETH directly from the bridge contract and then deposited the tokens into Aave and other lending platforms to borrow WETH, creating a significant risk of bad debt.
The impact of the incident is visible in user behavior. A large number of whales have taken money out of the protocol. This price development appears to be a precaution rather than a result of panic. Yet it has reduced liquidity within the system. Lower liquidity can increase volatility and make prices more sensitive to selling pressure.
Data from the DeFi tracking platforms shows a significant drop in total locked value. Aave’s TVL dropped by more than 30% after the incident. It has fallen from about $26.4 billion to almost $18 billion. This decline is indicative of lower participation and a conservative attitude among users.
The general market environment has also led to a slump. The continued inflow into Bitcoin exchange-traded funds has siphoned off altcoins’ liquidity. It is common for institutional capital to concentrate on larger and more established assets during times of uncertainty. This trend has limited recovery efforts for tokens like Aave.
In the short term, the next decision will involve very specific price levels. The $90 mark serves as a key support zone. A position above this level could help stabilize the price. If selling pressure subsides, a consolidation phase between $90 and $95 may follow. The downside is that any break below $90 could trigger further losses. The next support range is between $85 and $87. This zone may be interesting for investors looking for lower entry points. But the overall market slump could delay a significant recovery.