The decentralized finance sector has experienced a sharp decline in total value locked following the 293 million dollar exploit involving KelpDAO. Over the past 24 hours, TVL across multiple blockchain networks has fallen significantly.
Data from DeFiLlama shows that at least 126 tracked networks recorded losses, with Cosmos Hub suffering the most severe impact, losing more than fifteen times its total value within that period.
Widespread Decline Across Leading Networks
A pseudonymous analyst known as Vet highlighted that TVL has been dropping across the top twenty DeFi chains, noting that capital is leaving the market as participants reassess the balance between risk and reward.
The downturn has been broad, although not uniform. Ethereum, which remains the largest DeFi network with over 1700 protocols, recorded nearly an eleven percent drop in TVL within one day. Solana performed somewhat better, declining just over four percent in the same timeframe, although its monthly decrease exceeded nineteen percent.
Other major networks also saw declines. Arbitrum fell by about ten percent, Base dropped close to six percent, and Avalanche declined by more than six percent. In contrast, Bitcoin, Tron, and BNB Smart Chain showed relative stability, each recording losses of less than two percent.
Among the top ten networks, Hyperliquid experienced the steepest drop, losing over twelve percent of its total value and bringing its TVL down to approximately 1.44 billion dollars.
Beyond the top tier, declines were even more pronounced. Mantle fell nearly forty two percent after being identified as highly exposed to bad debt linked to the exploit by 0xngmi. Other notable losses included Taiko with a twenty two percent drop, Monad down over thirteen percent, and Berachain declining by more than seventeen percent.
Some Smaller Networks Record Gains
Despite the overall market retreat, not all networks were affected equally. A few smaller chains managed to post strong gains during the same period. Q Protocol surged by 477 percent in just one day, while Oasys and Shibarium rose by over ninety percent and eighty five percent respectively.
The KelpDAO incident stands as the largest DeFi security breach so far this year. Reports indicate that the protocol lost more than 293 million dollars after an attacker exploited a vulnerability in its bridge contract. Cross chain messaging protocol LayerZero later stated that the attack was carried out by the Lazarus Group through its TraderTraitor unit.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
