Connect with us
DAPA Banner

Crypto World

SIREN drops hard after hitting record high on BNB Chain

Published

on

Altcoin market cap faces make-or-break test as top 10 hit 82% share

SIREN has reversed sharply after a fast rally on BNB Chain, with the AI-focused token falling more than 70% from its March 22 all-time high. The drop came after several days of outsized gains and fresh scrutiny over supply concentration and wallet activity.

Summary

  • SIREN dropped over 70% after reaching an all-time high during a sharp rally.
  • Wallet concentration concerns added pressure as scrutiny around the token grew across crypto circles.
  • The BNB Chain token now struggles to stay above $1 after the crash.

SIREN traded near $0.40 on March 10 before climbing to an all-time high of about $3.61 on March 22. The move placed it among the stronger short-term performers in the market during a period when many larger assets posted smaller weekly gains.

That run then reversed. CoinGecko data showed SIREN trading near $1.01 on March 24, leaving the token down about 72% from its peak. Its 24-hour trading range stretched from about $0.80 to $2.56, showing how unstable the market remained after the sell-off began.

Advertisement

Part of the pressure came as onchain researchers raised concerns about supply concentration. Bubblemaps said one cluster held close to 50% of SIREN’s supply and warned that the setup carried clear downside risk if those wallets started to move tokens into the market.

The same scrutiny added to wider discussion across crypto social media about whether the token’s rally reflected normal market demand. Public claims on X linked the wallet cluster to known market participants, but no official confirmation was presented in the material reviewed here. That part remains unverified in public reporting.

The latest drop has left SIREN trying to hold above the $1 level after a rapid collapse from its record high. CoinGecko’s market page also showed bearish community sentiment on March 24, reflecting weaker confidence after the reversal.

Advertisement

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Advertisement

Source link

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Published

on

Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

Advertisement

Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

Advertisement

This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

Advertisement

It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?