SPK's stock surges 80% after attack on KelpDAO, attracting $1 billion.
- SPK surges 80% with post-attack DeFi migration
- Spark's TVL grows while Aave loses capital.
- rsETH exploit puts pressure on AAVE and the DeFi market.
The SPK token, the asset of the Spark Protocol, saw a strong increase in value on Wednesday, driven by a significant migration of capital within the DeFi sector. This movement occurred after the KelpDAO attack, which led more than $1 billion to seek alternatives considered safer within the ecosystem.
In the last 24 hours, SPK jumped from US$0,03 to US$0,055, raising its market capitalization to approximately US$144 million. Trading volume followed this advance, with a significant increase of 1.027%, reaching almost US$500 million in the period.
Even with the recent rally, the asset is still trading approximately 70% below its all-time high of $0,18, recorded in July of last year. At the time of publication, the price was at $0,05438, still accumulating a gain of about 60%, indicating a slight adjustment after the initial surge.
Capital movement in the DeFi sector intensified after the estimated $292 million attack. During this period, Aave's total value locked (TVL) decreased from approximately $26,4 billion to $15 billion. In contrast, Spark Protocol saw its TVL grow from $3,8 billion to over $5 billion.
TVL represents the amount of assets deposited in a protocol's smart contracts, including loan collateral and liquidity provided by users. This indicator can increase due to both internal incentives and capital migration between platforms, the latter being the main factor behind Spark's recent growth.
Meanwhile, the AAVE token remains under pressure, accumulating a drop of approximately 21% and trading in the range of US$92. The platform reported that its exposure to the vulnerability involving KelpDAO's rsETH could generate losses between US$124 million and US$230 million.
According to the team, the problem originated outside of their core contracts. The attacker allegedly exploited a cross-chain vulnerability to issue rsETH and use it as collateral within Aave. In response, the protocol froze the affected assets, adjusted loan parameters, and presented two possible recovery paths, depending on how the losses will be handled on the layer 2 networks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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