Ethereum stablecoin market shrinks 19% after $2... - Pluang
The Ethereum stablecoin and tokenized fund market has contracted by 19%, dropping from $206.7 billion to about $168 billion since the KelpDAO hack in April 2026.
Attackers exploited a single LayerZero verifier node to mint $292 million in unbacked tokens, triggering liquidity issues across DeFi platforms like Aave. This event has caused a shift in investor confidence, reducing capital in higher-risk yield products and raising concerns about cross-chain bridge security.
Market resilience amid concerns
Aave's market cap stands at Rp37.16 trillion with a 24-hour trading volume of Rp4.93 trillion as of Nov 10, 2026. Despite the overall market contraction, Aave's price on Pluang has risen by 2.59% in the last day, showing some resilience in the DeFi sector.
Pluang users show strong buying interest with 88% buy orders and a typical hold time of 107 days, indicating continued confidence in the platform despite ongoing security concerns.
Security measures ongoing
The ongoing lawsuit against LayerZero Labs and the stablecoin supply's stability will be key to watch for future market recovery.
Threshold Network has resumed the tBTC bridge operations after a nine-day pause caused by security maintenance addressing a Linux kernel vulnerability. Meanwhile, Aave's risk manager LlamaRisk is developing time-based borrowing limits following a $44.6 million Wrapped Ether loan exploit.
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