Report: Frequent DeFi hacks, stagnant TVL weaken institutional interest

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ME News, April 24 (UTC+8), JPMorgan's latest report states that recent DeFi security incidents including Kelp DAO, along with the prolonged stagnation of Ethereum-denominated TVL, continue to limit institutional interest in DeFi. The report points out that in the Kelp DAO cross-chain bridge attack, hackers minted approximately 292 million rsETH out of thin air, used them as collateral on Aave to borrow real ETH, causing about $230 million in bad debt, and triggered capital outflows from pools not directly related to the attacked assets, exposing the fragility of DeFi's high interdependency. Analysis indicates that the scale of crypto hacks and attacks this year is similar to that of 2025, with bridge security remaining a weak link. In risk events, capital tends to exit DeFi and shift to Tether USDT, which has deeper liquidity and more direct redemption paths, forming a "risk-averse" mode, but this advantage has not yet been clearly reflected in USDT's market cap growth. JPMorgan concludes that persistent security vulnerabilities and stagnant TVL together suppress DeFi's institutional appeal. (Source: PANews)
ETH0.65%
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