SPK Token Rallies 32% as Spark TVL Hits $4.78B

Key Takeaways

Spark Protocol’s TVL has surged 28% to $4.78 billion as depositors rotate capital out of Aave following the April 18 Kelp DAO bridge exploit.
Justin Sun alone has moved more than $174 million into Spark, accounting for roughly 26% of the protocol’s recent growth.
SPK is up 37% since the hack and is now trading at a six-month high, though momentum indicators signal overbought conditions.

Ethereum-based non-custodial lending protocol Spark has emerged as the standout beneficiary of the fallout from the Kelp DAO bridge exploit.

The April 18 attack has triggered a sustained liquidity exit from top lender Aave, and much of that capital is now rotating into Spark.

Over the past few days, the protocol has seen a surge in total value locked (TVL), on-chain deposits, and demand for its native SPK token, positioning it as the earliest winner of the reshuffling of DeFi’s lending layer.

Spark TVL See Surge

According to DefiLlama, Spark’s TVL has rocketed 28% since the April 18 hack, adding over $1 billion in fresh deposits over the past four days.

Aave’s Loan Book Shrinks as Spark’s Climbs

The rotation is also visible in lending activity across the two competing lenders.

As users flee Aave for Spark, active loans on the troubled lender have dropped, while Spark’s active borrows are rising.

According to Token Terminal, since April 18, Aave’s active loans have slid from $17.36 billion to $15.28 billion, a drop of $2.08 billion in just over 48 hours.

Spark, by contrast, has seen its active loan tick steadily higher to $1.4 billion from $942 million during the same period.

Spark vs Aave Active Loans | Credit: Token Terminal

This signals that borrowers, and not merely depositors, are shifting their positions across protocols.

SPK Token Rallies to Five-Month High

As user activity on Spark climbs, demand for its native token, SPK, has also soared.

Currently trading at a five-month high of $0.029, the altcoin’s price has climbed by 32% since April 18.

Some technical indicators on the daily chart suggest an extended rally is likely.

For example, SPK’s Awesome Oscillator has flipped sharply into positive territory, printing only rising green bars since April 15.

At press time, the indicator read 0.0047, its highest level since August 2025.

spark spk price technical analysis — SPK/USD Daily Chart | Credit: TradingView

The Awesome Oscillator compares an asset’s current market momentum with its longer-term momentum, helping identify potential trend shifts.

Readings above zero confirm bullish momentum.

Successive green bars of increasing size, as seen on SPK’s chart, signal that buying pressure is increasing. This suggests that the uptrend still has room to run.

Moreover, the altcoin’s Smart Money Index (SMI) has ticked up since April 18, signaling that the price surge receives strong backing from key holders.

As of this writing, this momentum indicator is at 0.95 and remains in an uptrend.

Smart money refers to capital managed by institutional investors or seasoned traders with deeper insight into market trends and timing.

The SMI tracks its activity by analyzing intraday price movements.

When this indicator trends upward, as with SPK, it indicates that smart money is accumulating the asset, hinting at further rallies.

Surging Volatility May Hurt SPK

While demand remains high among spot traders, SPK remains prone to sharp reversals amid the rapid volatility expansion that has accompanied its recent rally.

An assessment of the SPK/USD one-day chart shows that the altcoin now trades above the upper band of its Bollinger Bands indicator, signaling it is overbought and that the current price has deviated significantly from its average.

The Bollinger Bands measure an asset’s price volatility and identify overbought or oversold conditions.

It consists of three lines: a simple moving average (middle band) and two bands (upper and lower) representing standard deviations above and below the moving average.

When an asset breaks above the upper band — as SPK has done — it suggests a spike in volatility as the asset’s current value is moving significantly away from its average.

It also indicates that the asset may be overbought and due for a price correction.

Readings from SPK’s Relative Strength Index (RSI) confirm its overbought conditions.

At press time, this key momentum indicator is at 81.11, sitting well above the 70 threshold.

The RSI also measures overbought and oversold conditions using a scale of 0 to 100.

Readings above 70 indicate that an asset has been bought aggressively over a short window and may be due for a pullback.

In contrast, readings below 30 suggest oversold conditions, making a bounce more likely.

At 81.11, SPK is trading deep in overbought territory, a zone that typically reflects exhausted buying pressure.

Can SPK Hold Gains or Is a Pullback to $0.017 Next?

If buy-side pressure maintains dominance, SPK could extend its gains and push toward $0.034.

A clean break above this key resistance could push the token to $0.047, a high last reached in November.

Conversely, the overbought state of its spot market signals a near-term reversal. In this scenario, SPK’s pullback toward $0.017 is likely.

SPK Hits 6-month High As Spark Absorbs Over $1B In Aave Capital