Aave TVL plunges by $16.2 billion! Is DeFi capital quietly “retreating”? Aave’s total value locked (TVL) has recently shown a clear downward trend and has even fallen below $30 billion. Data shows that before the rsETH event, Aave’s TVL was still around $45.8 billion, but it has now dropped to about $29.6 billion—amounting to as much as $16.2 billion in capital leaving within a short period. This is not just a change in numbers; it reflects the market sentiment cooling rapidly. When a risk event occurs, funds often prioritize “withdrawing and standing by” rather than continuing to add positions. From a DeFi standpoint, a decline in TVL typically means shrinking liquidity, weaker confidence, and reduced risk appetite. At the same time, this stage also often marks a reshuffling of the market, as high-quality projects are re-priced.