Spark (SPK) has gained 98% to trade at $0.05834. The SPARK price rally follows a massive capital rotation into SparkLend after the $290 million Kelp bridge exploit.
Decentralized Finance (DeFi) lending is restructuring rapidly as depositors flee Aave and redirect funds toward competing protocols.
SparkLend Deposits Double After Kelp Fallout
SparkLend’s total value locked climbed from roughly $1.89 billion to $3.6 billion since April 18. That amounts to over $1.7 billion in new deposits within five days, per DefiLlama data.
Active loans on the platform also grew by approximately $500 million during that period. The increase suggests genuine borrowing demand rather than idle capital.
South Korea’s largest exchange, Upbit, also listed SPK today. The listing added retail liquidity from one of the world’s most active crypto markets.
As of this writing, SPK was trading for $0.05834, representing a 96.9% surge over the last 24 hours.
Spark (SPK) is the native governance and utility token of the Spark Protocol (often referred to as Spark), while SparkLend is the primary decentralized lending and borrowing application within that same ecosystem.
Aave Loses Over a Third of Its Deposits
The Kelp bridge exploit on April 18 saw attackers deposit unbacked rsETH into Aave as collateral. They borrowed roughly $190 million in wrapped ether (WETH) against it. The attack left between $124 million and $230 million in bad debt.
Aave’s total deposits have since fallen from $45.8 billion to $29.6 billion, per on-chain analyst EmberCN. That $16.2 billion outflow wiped out more than a third of the protocol’s deposit base.
Morpho, another major lending protocol, also shed $1.5 billion in deposits over the same period. Large holders and institutions rotated directly from Aave into SparkLend, per on-chain data.
Aave Works to Contain the Damage
Aave has partially unfrozen its WETH markets. Ecosystem participants have made commitments to help cover shortfalls.
Founder Stani Kulechov wrote on X that his focus remains entirely on the protocol’s users.
“Every bit of my energy right now is focused on the outcome for Aave users and the protocol,” he stated.
Whether this capital rotation proves temporary may depend on how quickly Aave resolves its bad debt and how resilient the team proves to be.
Afterall, Bybit also faced a very big challenge in 2025 due to the hack, yet it is up and running today.
