Shared from twixb · theblock.co

DeFi TVL slides 14% since KelpDAO exploit as risk appetite retreats

theblock.co·May 26, 2026

LMAX Digital is an institutional crypto exchange offering high-level information and live data on various cryptocurrencies. Currently, the total value locked in DeFi has declined by approximately 14% following the KelpDAO exploit, reflecting a broader withdrawal of capital and decreased risk appetite in the market.

The KelpDAO breach highlights a critical shift in DeFi risk exposure from smart contracts to off-chain infrastructure vulnerabilities. For those involved in fintech and DeFi, this incident underscores the importance of integrating robust monitoring frameworks for off-chain elements to mitigate such evolving threat surfaces. This is pivotal for maintaining investor confidence and ensuring the long-term sustainability of decentralized finance ecosystems.

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