KelpDAO rsETH Sees $936K Net Outflows After Resuming Post-Hack Trading
KelpDAO’s rsETH market is showing continued post-hack volatility one month after the $292 million exploit. On April 18, attackers drained 152,577 rsETH via a vulnerability in KelpDAO’s LayerZero cross-chain bridge. Santiment data then showed a short-term spike in rsETH moving to exchanges as traders reduced risk exposure.
Recovery efforts followed: KelpDAO, Arbitrum and Aave reportedly coordinated seizures of the hackers’ positions. On May 15, KelpDAO announced a resumption of reETH/rsETH-related activities (including withdrawals, bridging, and protocol operations). Shortly after the May 15 update, exchanges recorded a net outflow of about 435 rsETH (around $936,000), suggesting improving investor confidence and a shift away from exchange custody toward self-custody wallets, staking, and DeFi usage.
Security context: the article also notes a separate THORChain attack causing losses of roughly $10.8–$11 million across multiple chains (including Bitcoin, Ethereum, BSC, and Base). WuBlockchain says THORChain paused trading and issued a global emergency alert. For 2026, DefiLama estimates total DeFi exploit losses at about $823.9 million.
For traders, KelpDAO rsETH flows (exchange outflows after re-openings) can act as a near-term sentiment gauge, but headline-driven hack risk remains elevated.
Neutral
The headline is mixed. On one hand, the KelpDAO rsETH hack involved a massive loss ($292m) and triggered immediate sell/hedge behavior (rsETH moving onto exchanges right after the exploit). That typically creates short-term bearish pressure across affected liquidity pools and derivatives.
On the other hand, after the May 15 resumption announcement, rsETH saw an exchange net outflow (~435 rsETH, ~$936k). Historically, exchange outflows after a protocol restart often signal risk normalization: traders stop dumping and instead reallocate to self-custody, staking, or on-chain DeFi. That pattern resembles post-incident stabilization seen in other DeFi recoveries when withdrawals/operations reopen and restrictions lift.
Adding THORChain’s concurrent $10.8m–$11m hack keeps overall DeFi security risk elevated, which can cap upside and drive cautious positioning. Net effect: traders should expect choppy, headline-sensitive price action in the short term, but the rsETH flow signal is not purely negative—so the overall market impact is neutral rather than clearly bearish or bullish.