$ETH Market Disruption: $1.7B Aave Exodus 📉
## What's Happening
A massive $1.7 billion ETH withdrawal from Aave (with Justin Sun reportedly pulling $600M) has triggered a chain reaction in DeFi markets:
1. 🔥 **Liquidity Crunch**: Sharp drop in ETH liquidity on Aave
2. 📈 **Borrowing Rates Spike**: Utilization rates increased dramatically
3. 📉 **stETH Depeg**: Trading at approximately 0.3% below ETH
4. 🔄 **Leverage Unwinding**: Popular stETH/ETH loops becoming unprofitable
## Market Impact
* ETH price initially rose 8% to $3,593 but has since pulled back
* sETH (Synthetic ETH) jumped 30.5% as traders sought alternatives
* Current stETH redemption queue: ~18 days processing time
## Why This Matters
This event exposes DeFi's systemic vulnerabilities - a single large withdrawal cascaded into widespread market disruption, affecting lending rates and breaking popular yield strategies.
