Following the April 18 exploit of Kelp DAO, on-chain data revealed a significant movement of rsETH tokens to centralized exchanges. Within hours, a net total of 563 rsETH tokens were transferred, reflecting immediate concerns over asset safety within the Kelp ecosystem, according to Santiment. This movement underscores the broader impact of protocol breaches on liquid restaking tokens like rsETH, which are tied to EigenLayer deposits. The spike in exchange inflows suggests that holders prioritized de-risking amid uncertainty, opting to move tokens to exchanges rather than non-custodial wallets. This behavior indicates a readiness to sell if conditions deteriorate further. The Kelp DAO exploit remains under investigation, with the nature of the breach still unclear. The incident highlights the fragility of the liquid restaking sector, even as Ethereum leads in developer activity and institutional blockchain applications grow separately.