SPK, the native asset of Spark Protocol, surged over 80% on Wednesday. This spike occurred as more than $1 billion moved to Spark Protocol in the aftermath of the KelpDAO exploit.
SPK climbed from $0.03 to $0.055 in 24 hours, boosting its market cap to $144 million. Trading volume surged 1,027% to nearly $500 million during the rally.
At the time of reporting, SPK traded at $0.053, still significantly below its record high. DeFi capital has been volatile since the $292 million attack. Aave's Total Value Locked (TVL) dropped from $26.4 billion to $15 billion. In contrast, Spark Protocol's TVL increased from $3.8 billion to over $5 billion.
TVL represents the assets stored in a protocol's smart contracts. Spark's recent growth is attributed to inflows from other decentralized finance platforms.
AAVE token has declined approximately 21% since the incident, trading at $92. Aave stated its exposure to the KelpDAO exploit could result in $124 million to $230 million in bad debt. The incident originated outside Aave's core smart contracts.
The attacker reportedly used a cross-chain exploit to mint rsETH and use it as collateral on Aave. In response, Aave has frozen assets and tightened parameters.