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Crypto lending rebounds as TVL tops $56 billion

Galaxy data show $11.33 billion exited the sector in Q2, after a Kelp DAO hack disrupted Aave users access to ETH in April.

Reported · Written up by our desk · DeFi

Crypto lending has rebounded after a weak second quarter, with activity picking up even as security risks remain, according to Cointelegraph.

The outlet cites Galaxy data showing $11.33 billion left the crypto lending sector in Q2, linked in part to a confidence crisis after the Kelp DAO hack in April that left users of the Aave protocol unable to access their ETH.

Since the start of July, Cointelegraph says total value locked has grown by more than 55%, bringing it to around $56 billion, even as interlinked protocol risks and AI-assisted hacking concerns have increased the potential impact of failures.

Cointelegraph also frames the resurgence as a double-edged sword, noting that as lending returns, the size of the “honeypot” for attackers grows as well.

Latest closeEthereum $2,512.33 ▼2.4%

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