Capital isn’t leaving DeFi entirely, it’s rotating.

Aave’s TVL slipping further to $16.45B (-$9.94B) shows the continued fallout from the recent stress events, but the interesting part is where that money is going. a chunk of it is flowing into Spark, which has climbed to $4.55B (+$825M).

that shift tells a clearer story: users aren’t fully exiting lending,they’re switching venues, perceived risk on Aave pushed capital to alternatives, Spark is benefiting as a safer or more stable option (for now)
this kind of rotation usually happens when trust gets shaken in one protocol just currently with #KelpDAO hack, but not the entire sector. instead of pulling funds off-chain, whales and lenders are just reallocating to where they feel safer.

so while Aave is taking the hit, DeFi itself isn’t “dead”, it’s just repricing trust in real time.