ETH utilization has fallen below 90% as deposits decline following the recent LayerZero cross-chain bridge attack. On-chain analyst Tom Wan reports that lending APY has decreased to 1.9%. The attack led to a significant reduction in deposits, with wstETH and weETH seeing declines of approximately $1.2 billion and $1.76 billion, respectively. Market participants are now closely monitoring whether the profitability of the wstETH/weETH circular leverage strategy will revive demand for ETH circular leverage or if funds will shift towards protocols like Spark and Morpho.