Analyst: Aftermath of rsETH Security Incident Continues, Demand for ETH Leverage Cycles Cools Significantly

Chain analyst Tom Wan posted on platform X, stating that the current ETH utilization rate has fallen below 90%, with the lending APY dropping to 1.9%. Since the rsETH LayerZero bridge attack, the deposit volumes of wstETH and weETH have decreased by approximately $1.2 billion and $1.76 billion, respectively. As the leveraged looping strategy of wstETH/weETH against ETH returns to profitability, market attention is shifting to whether demand for ETH leverage cycles will rebound, or if capital will continue to wait on the sidelines or flow to protocols such as Spark and Morpho.