Jack Paul 
Standard Chartered has weighed in on the recent KelpDAO-related rsETH crisis, which has sparked widespread concern across the DeFi ecosystem. In a report covered by The Block, the banking giant argues that despite the hack, the decentralized finance sector remains resilient.
The attack on April 19th drained $292 million worth of rsETH, exposing structural vulnerabilities in DeFi and triggering massive withdrawals—about $17 billion—from Aave within three days. The incident was a jolt to the market, no doubt. But Standard Chartered analyst Geoffrey Kendrick notes that the response from the community was swift. A coalition led by Stani Kulechov raised over $300 million for a collective recovery effort. Support came from major players like Arbitrum, Consensys, Joseph Lubin, Mantle, and Lido, with Aave DAO receiving public backing.
Turning Crisis into Strength
Kendrick suggests that rather than derailing DeFi’s progress, the hack might actually boost its development by showing that the sector can unite under pressure. He believes this crisis, while serious, doesn’t undermine the broader thesis of DeFi’s growth. Instead, it tests and strengthens it. The bank sees the events as significant beyond just Aave or rsETH.
Long-Term Outlook
Looking ahead, Standard Chartered predicts that the market capitalization of tokenized real-world assets (RWA) could hit $2 trillion by the end of 2028, up from $35 billion in October 2025. That forecast hinges on continued growth in DeFi banking and stablecoin liquidity. So, in the bank’s view, this latest turmoil isn’t a setback but a stress test that the system is passing.
This is not investment advice.