Summary Points
- The recent KelpDAO $293M exploit triggered an almost 11% drop in Ethereum’s TVL and widespread declines across 126 chains, with CosmoHub losing over 1,500%.
- Major chains like Bitcoin, Tron, and BSC experienced minimal impact, losing less than 1.6%, while chains like Mantle and Taiko suffered losses exceeding 20%.
- Smaller chains such as Q Protocol, Oasys, and Shibarium saw significant gains of up to 477%, indicating selective risk appetite amid the downturn.
- The DeFi ecosystem is re-evaluating risk, with many investors pulling out, leading to a broad retreat but some chains bucking the trend with notable growth.
Ethereum’s Total Value Locked (TVL) dropped nearly 11% in 24 hours. Bitcoin, Tron, and BSC were less affected. This decline follows the recent KelpDAO hack, which caused significant concern across the DeFi sector. Over the weekend, the exploit led to the loss of more than $293 million.
According to DeFiLlama, at least 126 networks experienced drops. CosmoHub was hit hardest, losing over 1,500% of its TVL. Experts say investors are re-evaluating risks, moving their assets away from unstable protocols. This trend shows a shift in how people manage their holdings during uncertain times.
Ethereum, the largest DeFi network, saw its TVL fall by almost 11%. Meanwhile, Solana lost about 4%, and other chains like Arbitrum, Base, and Avalanche saw declines of around 6-10%. However, Bitcoin, Tron, and BSC were less impacted, with decreases under 2%. Hyperliquid, in particular, lost over 12% of its assets, reducing its dollar value to $1.44 billion.
Outside the top chains, some smaller networks suffered more. Mantle dropped nearly 42%, and Taiko lost 22%. Others, such as Monad and Berachain, saw decreases of around 13% and 17%, respectively. These sharp declines highlight the vulnerability of less established platforms.
Interestingly, some smaller chains gained value. Q Protocol jumped 477% in a day. Oasys and Shibarium also experienced large increases, with gains of over 85%. This shows that, despite the overall pullback, certain projects still attract investor interest.
The KelpDAO hack remains the biggest security breach in DeFi so far this year. It exposes how vulnerable some protocols are and emphasizes the importance of better security practices. As the industry develops, improving safeguards can help rebuild trust and encourage growth in decentralized finance.
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