ETH leverage demand plummeted after rsETH hack, data shows

On-chain analyst Tom Wan noted that ETH utilization has fallen below 90%, with the ETH borrowing rate (APY) dropping to 1.9%. He explained that following the hack of the rsETH LayerZero bridge, deposits of wstETH and weETH decreased by approximately $1.2 billion and $1.76 billion, respectively. However, Wan added that the profitability of looping leverage strategies based on wstETH and weETH has recently turned positive again, making the potential recovery of ETH leverage demand a key point for the market to watch. He also mentioned that there is speculation in the market that some funds could move to alternative lending protocols such as Spark and Morpho.