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Large Cardano holders have continued accumulating ADA despite the cryptocurrency’s prolonged decline, with millionaire wallets now controlling the biggest share of supply seen in years.

Cardano’s native token, ADA, has fallen more than 70% over the past year. Since the beginning of 2026 alone, the asset has declined by roughly 30%, while repeated attempts to reclaim the $0.25 price level have failed.

Despite the weak market performance, wallets holding at least one million ADA have steadily expanded their positions, signaling that major investors remain active even during the downturn.

Millionaire Wallets Reach Highest Accumulation Since 2017

According to blockchain analytics platform Santiment, wallets containing at least one million ADA now collectively hold 25.11 billion tokens. This marks the highest accumulation level recorded since December 2017.

These large holders currently control approximately 67.5% of the total ADA supply, representing the highest concentration since July 2020.

Santiment noted that continued accumulation by whales is often interpreted as a sign of confidence from investors with significant exposure to the asset. From a long term perspective, the firm suggested that this trend could be viewed as potentially bullish for patient holders willing to wait through market volatility.

Cardano Still Faces Questions Over Ecosystem Growth

The increase in whale accumulation comes while Cardano continues to face criticism regarding the growth and adoption of its ecosystem.

Critics have frequently argued that the network has struggled to generate the same level of traction achieved by competing blockchain platforms.

Earlier this month, crypto analyst Ali Martinez questioned Cardano’s long term outlook, pointing to what he described as relatively weak network activity compared to the project’s multibillion dollar valuation.

Martinez highlighted that Cardano’s decentralized finance ecosystem has never surpassed $1 billion in total value locked. He also noted that the network continues to lag behind competitors such as Ethereum, while newer blockchains like SUI have already demonstrated stronger user activity and adoption.

According to Martinez, Cardano has yet to establish a clearly defined niche capable of consistently attracting developers, users, and capital. He also argued that the blockchain’s research driven development approach has slowed the rollout of important features.

Some other market analysts have similarly questioned whether Cardano may currently be among the most overvalued blockchain projects in the crypto industry.

Data from DeFiLlama shows that Cardano’s total value locked has now dropped below $125 million, representing an 82% decline from its peak near $721 million in November 2024.

Analysts Say ADA’s Technical Structure Remains Weak

Crypto trader Val Me described Cardano’s current chart structure as “very sad looking,” emphasizing that ADA still appears weak on higher time frame charts despite trading close to an important support area around $0.22.

According to the analyst, ADA could either rebound from current levels or briefly dip below recent lows before attempting a recovery.

She identified a potential move toward $0.50 in the event of a short term rally, although she warned that such a move could still form a lower high before the asset revisits support levels again.

Val Me added that she would only begin considering a more bullish long term scenario if ADA eventually establishes and maintains a higher low. In that case, she suggested the cryptocurrency could potentially target $1.35 in the future.

However, she cautioned that such an outcome remains highly speculative at this stage.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Cryptocurrency markets came under heavy pressure today, wiping out more than $100 billion in total market capitalization as Bitcoin and most major altcoins recorded steep losses.

The sharp decline triggered widespread panic across derivatives markets, where liquidations surged past the $1 billion mark within 24 hours.

Bitcoin Slides Below $73K Amid Rising Market Pressure

Bitcoin experienced a significant selloff after reports emerged that the United States had resumed military strikes on Iran, followed by an immediate response from Tehran.

The leading cryptocurrency dropped more than 3.5% on the day, shedding over $2,000 in value and briefly falling below the $73,000 level before recovering slightly.

Market analysts largely attribute the decline to escalating geopolitical tensions, which pushed investors away from risk sensitive assets such as cryptocurrencies.

At the same time, traders are also paying attention to a major transaction that took place shortly before today’s downturn. Earlier this week, an entity reportedly sold 29 million shares of BlackRock’s IBIT spot Bitcoin ETF in a block trade worth approximately $1.3 billion.

The transaction marked the largest single day sale in the history of the ETF and occurred just ahead of the market decline, adding to speculation and uncertainty among investors.

Despite the turmoil in crypto markets, traditional financial markets remained relatively stable. The S&P 500 traded mostly flat, suggesting that Wall Street has not reacted strongly to the latest developments involving the US and Iran.

Oil prices initially climbed following the geopolitical headlines but later pulled back as the trading session progressed.

Stellar Defies the Selloff With a Massive Rally

While most cryptocurrencies traded deep in the red, Stellar emerged as one of the few standout performers in the market.

XLM surged roughly 19% over the past 24 hours, sharply outperforming the broader crypto market and breaking away from the prevailing bearish trend.

Meanwhile, major altcoins such as BNB, XRP, Ethereum, Dogecoin, Litecoin, and Avalanche posted losses ranging between 3% and 4%, largely mirroring Bitcoin’s decline.

Other cryptocurrencies, including TRX, HYPE, and TAO, suffered even steeper drops exceeding 6%.

Another token showing strength was RAIN, which gained around 9% and extended the upward momentum it began building during the previous trading session.

Overall, the broader altcoin market remained overwhelmingly negative as investor sentiment weakened amid geopolitical uncertainty and growing volatility across digital assets.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Bitcoin experienced a sharp decline today, falling below the $73,000 mark after losing more than 3.5% over the past 24 hours.

The downturn erased over $2,000 from Bitcoin’s value and triggered a wave of liquidations across the derivatives market, with total liquidations approaching $1 billion.

Several factors appear to have contributed to the sudden selloff. Here are two of the most likely drivers behind the decline.

Renewed US Military Strikes on Iran

One major factor weighing on markets was the escalation of tensions between the United States and Iran.

Earlier reports confirmed that the US resumed military strikes targeting an Iranian military facility. In addition, US forces reportedly intercepted four Iranian drones considered a threat near the Strait of Hormuz.

A US official told Reuters that the operations were “measured,” “purely defensive,” and intended to preserve the existing ceasefire.

Iran later responded by attacking a US military base in Kuwait. The country’s Islamic Revolutionary Corps issued a statement confirming the retaliation and warning that “aggression will not go unanswered.”

The developments pushed oil prices up by around 5%, increasing concerns about additional pressure on the global economy.

Bitcoin, which is widely viewed as a risk sensitive asset, reacted negatively to the rising geopolitical uncertainty. In periods of heightened global tension, investors often reduce exposure to volatile assets such as cryptocurrencies, leading to sharp short term price declines.

Massive $1.3 Billion BlackRock ETF Sale

Another major event affecting market sentiment involved BlackRock’s spot Bitcoin ETF, IBIT.

Reports surfaced yesterday that an entity sold approximately 29 million shares of the fund in a transaction valued at roughly $1.3 billion. The trade officially became the largest block sale ever recorded for a spot Bitcoin ETF and also represented the biggest single day outflow in the history of Bitcoin ETFs.

With additional context now emerging, some market participants have started speculating about whether the seller anticipated upcoming market turbulence.

Regardless of the motive, the scale of the sale has drawn significant attention across the crypto market.

Spot Bitcoin ETFs have become increasingly influential in shaping market sentiment and liquidity. Large scale liquidations of ETF holdings not only impact prices directly but can also influence investor confidence.

A block sale worth $1.3 billion is substantial enough to raise concerns among traders and institutions alike, particularly during an already fragile market environment.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Cryptocurrency markets have fallen to their weakest levels in six weeks shortly after US President Donald Trump declared that he rescued the crypto industry.

In a post shared on Truth Social on Wednesday, Trump accused former SEC Chair Gary Gensler and what he described as an “anti crypto army” of nearly destroying the American digital asset sector by pushing Bitcoin, crypto perpetuals, and innovation overseas.

Trump stated that he stepped in to reverse that trend, claiming the United States has now become the global hub for crypto activity.

“America is now the crypto capital of the world, and builders and entrepreneurs are coming back to the United States where they belong,” he wrote.

He also promised that his administration would establish a long term digital asset framework designed to withstand opposition from critics of the industry.

“The new frontier of finance is being built in America, and Trump will never let crypto down,” he added.

In another post, Trump warned that other nations are attempting to overtake the United States in crypto leadership but insisted his administration would not allow that to happen.

“It is a major industry, and we must protect it,” he said.

Bitcoin Hits Six Week Low While Ethereum Falls Below $2,000

Under normal market circumstances, supportive remarks from a major world leader could have boosted investor confidence. Instead, crypto markets reacted negatively as bearish sentiment intensified.

The total crypto market dropped nearly 3%, erasing more than $80 billion in value.

Data from Coinglass showed that approximately 165,000 traders were liquidated over the past 24 hours, with total liquidations reaching $928 million. Long positions accounted for 93% of those losses.

Bitcoin declined 3.2% to around $72,800, marking its lowest price since mid April. The leading cryptocurrency has now fallen roughly 8% over the past two weeks and appears to be moving closer toward the $60,000 range again.

Ethereum also suffered heavy losses, sliding more than 4.4% below the key $2,000 psychological level to trade near $1,975. That marks its weakest level since late March.

Altcoins across the broader market remained deep in the red as selling pressure continued to intensify throughout the sector.

Market intelligence platform Santiment noted that many retail traders responded to Ethereum’s drop with renewed “buy the dip” optimism.

“Retail has erupted with buy the dip calls toward ETH as a result of this drop below a key psychological support level,” the firm reported.

Santiment added that such optimism from retail traders can sometimes signal further downside ahead because crowd sentiment often proves inaccurate during volatile market conditions.

Renewed US Iran Tensions Add More Pressure to Markets

Crypto markets also faced additional pressure following renewed military tensions involving the United States and Iran.

According to Reuters, the US launched another round of strikes on Iranian military targets late Wednesday while also intercepting four Iranian drones considered a threat near the Strait of Hormuz.

A US official described the actions as “measured” and “purely defensive,” saying the operations were intended to preserve the ceasefire.

Iran later responded by launching an attack on a US military base in Kuwait, further escalating geopolitical tensions and adding uncertainty across global financial markets.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Analysts believe STRC creates a constant one sided demand for Bitcoin because selling activity tied to the stock never directly affects BTC markets.

Strategy’s preferred stock, STRC, has recently become a larger buyer of Bitcoin (BTC) during peak periods than all US spot Bitcoin ETFs combined.

Unlike ETF flows, however, STRC activity only moves in one direction. According to a recent report from on chain researchers at Pine Analytics, this imbalance is one of the most important factors behind Bitcoin’s potential for sustained upside momentum.

One Sided Demand Compared to Two Way ETF Flows

In a report published on May 27, Pine Analytics compared Bitcoin purchases driven by STRC with those tied to ETFs. The firm noted that between March 9 and March 15, 2026, STRC’s at the market share sales generated $1.18 billion. Strategy then used those proceeds to purchase 17,994 BTC at an average price of $70,946.

During that same week, all 12 US spot Bitcoin ETFs recorded combined inflows of roughly $763 million. This meant STRC alone outpaced the entire spot Bitcoin ETF market in terms of BTC buying activity.

Pine Analytics stressed that the more significant difference lies in the structure of the flows themselves. ETF flows can move in both directions, while STRC flows only move one way. For instance, on January 29, spot Bitcoin ETFs experienced net outflows of $817.8 million, forcing authorized participants to sell Bitcoin into the market to meet redemptions. STRC does not operate this way. When investors sell STRC shares, the transactions occur entirely within the equity market, and Strategy does not need to sell any of its Bitcoin holdings.

“STRC does not exist to pay a dividend. It exists to buy Bitcoin,” the analysts wrote. “The dividend is the cost of keeping the machines running.”

They further explained that every dollar used to purchase STRC creates buying pressure for Bitcoin, while selling STRC shares cannot create selling pressure for BTC. This structural distinction means ETFs can drain liquidity from Bitcoin markets, whereas STRC cannot.

The report also highlighted that Strategy can only issue new STRC shares when the stock trades at or above its $100 par value. Any capital raised above that threshold is directed toward Bitcoin purchases, making continued issuance highly dependent on price stability.

Why Volatility Has Become the Key Variable

Pine Analytics argued that the relationship extends beyond the mechanics of share issuance. In leveraged markets, lower volatility results in smaller collateral haircuts, which increases borrowing capacity for institutions holding the asset. This dynamic encourages larger institutional allocations.

Since STRC launched, its 30 day rolling volatility has reportedly fallen from 18% to roughly 2%. As volatility declined, institutions were able to increase their position sizes. More institutional capital would then support additional at the market share issuance, leading to more Bitcoin purchases and a stronger balance sheet for Strategy. In turn, that stronger balance sheet could help stabilize STRC even further, creating a self reinforcing cycle.

According to the latest figures published on Strategy’s website, STRC’s 30 day historical volatility currently sits near 4.2%, while the stock trades slightly below par at $99.47. Pine Analytics noted that this discount matters. A BitcoinQuant chart referenced in a follow up post showed noticeable price pressure across Strategy’s preferred stock series since March, with analysts warning that “this does not look good.”

The report pointed to the risks tied to this fragility. Earlier in the year, a routine ex dividend decline temporarily halted issuance activity and reduced weekly Bitcoin purchases from 17,994 BTC to just 1,031 BTC. Analysts cautioned that a more serious credit event, where the stock loses its peg and fails to recover, could completely shut down the at the market issuance program and eliminate one of the largest structural sources of Bitcoin demand.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic

David Hoffman revealed that he has exited his Ether holdings, explaining that he believes the long standing “ETH is money” narrative has largely reached its full potential, even though he still remains highly optimistic about Ethereum as a blockchain network.

Hoffman said the decision was personally difficult because much of his career, business, community, and identity had been built around Ethereum.

Ethereum Pursued a Different Vision Than Bitcoin

In a recent post, Hoffman explained that the original investment thesis behind ETH relied on Ethereum successfully coordinating across several areas simultaneously, including decentralized governance, leadership, Layer 2 ecosystems, roadmap execution, and technological innovation.

He emphasized that Ethereum deliberately chose a more ambitious direction compared to Bitcoin.

According to Hoffman, Bitcoin simplified its blockchain architecture primarily to maximize the value and monetary role of BTC, while Ethereum focused on building a broader ecosystem centered around decentralized applications, decentralized finance, tokenization, and blockchain infrastructure.

He argued that Ethereum successfully achieved much of that vision and earned its current market capitalization as a result. However, he also suggested that the opportunity for ETH to experience another major structural revaluation may now be diminishing.

Crypto’s Broader Vision Lost Momentum

Hoffman also reflected on what he described as the “strong version” of crypto, which once revolved around decentralized finance, NFTs, DAOs, and crypto native economic systems.

According to him, that broader movement struggled to maintain lasting mainstream adoption beyond the 2020 to 2022 cycle.

He stated that crypto eventually became increasingly associated with scams, speculation, and exploitative behavior, weakening the social trust needed for ETH to fully function as a global form of money.

Hoffman further argued that Ethereum’s utility increasingly benefits other forms of value, especially stablecoins and tokenized dollars, rather than ETH itself.

He described Ethereum as “a giver, not a taker,” explaining that the network provides secure blockspace, tokenization infrastructure, and DeFi support at relatively low cost instead of maximizing direct value extraction for ETH holders.

According to Hoffman, Ethereum’s architecture prioritizes ecosystem expansion, applications, and rollups above the monetary dominance of ETH, making it harder for the asset to achieve true global money status unless it reaches overwhelming market dominance.

Bearish Sentiment Around Ethereum Continues to Grow

Hoffman’s comments arrive during a period of growing pessimism surrounding Ethereum.

A recent report from Santiment found that social media discussions around Ethereum have increasingly shifted from optimism toward frustration and concerns about additional downside.

The analytics platform said many traders now view ETH as “dead money” compared to stronger performing crypto assets in 2026, particularly as weakening ETF inflows, slowing on chain activity, and increasing competition from ecosystems such as Solana and BB Chain continue to pressure sentiment.

Speculation about prominent Ethereum figures reducing or fully exiting their ETH positions, including discussions involving Hoffman, has also fueled uncertainty as traders question whether insiders are losing confidence in the asset.#crypto#cryptonews https://coinsignals.nethttps://t.me/coinsignalpublic

XRP continues to trade within a tight range between roughly $1.30 and $1.38 after multiple unsuccessful breakout attempts.

As bearish sentiment intensifies, blockchain analytics platform Santiment believes XRP may be approaching a potential bottom zone.

XRP Traders Facing Heavy Losses

According to Santiment, the average XRP trader active over the last 30 days is currently sitting on losses of approximately 47%, with many investors reportedly selling during the recent market downturn.

The firm noted that XRP’s 30 day Market Value to Realized Value ratio, commonly known as MVRV, has fallen to its lowest level since December 2020.

MVRV is a metric used to evaluate the average profitability of traders, and historically the indicator tends to gravitate back toward neutral levels near 0%.

Santiment explained that XRP’s deeply negative reading suggests the asset may now be trading within an extremely undervalued range.

The decline reflects growing fear and frustration among traders after XRP erased more than half of its market value since last summer.

The analytics platform said many traders entered positions during XRP’s powerful rally in late 2024 and early 2025, only to face mounting losses after momentum weakened and repeated selloffs pressured short term holders.

Long Term Optimism Still Exists

Despite the ongoing decline, some long term investors continue to remain optimistic about XRP’s future.

Santiment pointed to several factors supporting bullish expectations, including hopes for further regulatory clarity, speculation surrounding a potential XRP exchange traded fund, and Ripple’s broader adoption narrative.

The firm added that extreme negative MVRV levels have historically appeared during periods when retail traders capitulate, often creating conditions where even small positive developments can spark strong price rebounds.

Fear surrounding XRP has also intensified across social media platforms.

According to Santiment, the ratio of bullish to bearish XRP comments has dropped to nearly 1.1 positive comments for every 1 negative comment, highlighting growing caution among traders.

The platform noted that similar periods of widespread fear and skepticism have historically acted as contrarian indicators for XRP, as weaker holders often exit during sharp corrections before prices stabilize or recover.

Speculative Activity Begins to Increase

At the same time, fresh data from CryptoQuant suggests speculative activity around XRP perpetual futures is beginning to rise again on Binance.

Although XRP continues trading near $1.34, CryptoQuant reported that the token’s volume imbalance reading climbed to around 0.54, indicating that perpetual futures trading volumes have increased significantly compared to quieter market periods.

The analytics platform said this signals renewed interest from traders opening short term leveraged positions.

CryptoQuant also revealed that XRP’s Z Score has risen close to 0.95, meaning trading activity is now approaching one full standard deviation above its normal average.

The firm added that the indicator spent a prolonged period in negative territory before recently turning positive again, suggesting that trader risk appetite may slowly be recovering alongside renewed speculative participation in the XRP market.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic

Crypto markets faced heavy selling pressure on Tuesday as bearish sentiment spread across the altcoin sector, triggering sharp declines in several major tokens.

Among the biggest losers was Zcash, which suffered a double digit decline despite maintaining strong long term gains over the past year.

Altcoin Selloff Deepens

According to blockchain analytics firm Santiment, a broad market selloff impacted several altcoins, including Zcash, WLFI, Ondo Finance, and DeXe.

Zcash led the decline after dropping roughly 11% at one stage during the trading session. Although the token later reduced some losses, it still remained down around 7.5% over 24 hours while trading near $570.

Despite the sharp daily correction, ZEC has still gained approximately 60% over the past month and nearly 970% over the last year, putting the latest pullback into broader perspective.

WLFI also faced renewed pressure after falling around 8%, extending a difficult period for the token. The asset previously hit a fresh all time low in late April following a one day decline of 16%.

The token has remained under pressure amid controversy surrounding a lock up proposal, legal action involving Justin Sun, and ongoing scrutiny connected to ties with the Trump family.

Meanwhile, ONDO dropped roughly 7% following the death of Nathan Allman at the age of 32.

The company confirmed that longtime President Ian De Bode would assume the role of CEO moving forward.

Despite the decline, ONDO was still trading around $0.41 and remained up roughly 9% over the previous seven days.

Some Tokens Continue to Outperform

Although much of the market traded lower, several cryptocurrencies still posted strong weekly gains.

NEAR climbed more than 55% over the last seven days and traded around the $2.50 level, even after recording an 8% daily decline on Tuesday.

HYPE also continued its strong momentum, rising approximately 25% during the week according to Santiment data.

However, the biggest standout performer was RAIN, which surged to a new all time high near $0.012 after gaining nearly 55% over the week and more than 44% in a single day.

Bearish Mood May Signal Rebound

Santiment also noted that bearish market expectations have steadily increased over the last 10 days.

Historically, the analytics firm said that periods of widespread pessimism among traders have often preceded market recoveries, as crypto markets frequently move against prevailing crowd sentiment.

Still, uncertainty remains high as Bitcoin continues to trade below the $77,000 level and struggles to reclaim its descending 200 day moving average near $80,000.#cryptp#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Recently launched US exchange traded funds tied to Hyperliquid’s HYPE token are making waves across the crypto market after delivering one of the strongest ETF debuts the industry has seen.

New figures show that HYPE based ETFs achieved a milestone within just 10 trading days that spot Bitcoin, Ethereum, and Solana ETFs were unable to reach during their own launches.

HYPE ETFs Set New Benchmark

According to Kairos Research, spot HYPE ETFs absorbed approximately 1.04% of HYPE’s total market capitalization within their first 10 trading days.

The research firm described the performance as the strongest launch for any spot crypto ETF to date.

For comparison, spot Bitcoin ETFs captured around 0.59% of Bitcoin’s market cap during the same period, while spot Ethereum ETFs reached 0.41%, excluding outflows from GBTC and ETHE products.

Spot Solana ETFs reportedly recorded just 0.31%.

The two major HYPE related funds, 21Shares’ THYP and Bitwise Asset Management’s BHYP, have already attracted more than $95 million in combined net inflows shortly after launch.

Eric Balchunas previously described the timing of the launches as “perfectly timed.”

THYP debuted on Nasdaq on May 12 as the first HYPE focused ETF available in the United States market and had accumulated approximately $44 million in net inflows by May 26.

BHYP entered the market two days later on May 14 and has already attracted roughly $55 million in net inflows, according to data from SoSoValue.

Consistent Inflows Fuel Momentum

Both funds have now recorded nine consecutive trading days of inflows without experiencing a single day of outflows.

The strong performance stands out even more given broader ETF market conditions. On Tuesday alone, Bitcoin and Ethereum ETFs reportedly saw combined outflows approaching $370 million, while Solana ETFs recorded no inflows or outflows during the session.

HYPE Token Surges Alongside ETF Demand

The rapid rise in HYPE ETF inflows has coincided with a sharp rally in the underlying token’s price.

While several leading cryptocurrencies have struggled to establish clear bullish momentum this month, HYPE has climbed nearly 50% over the same period. The token was trading near $62.31 at the time of reporting.

On chain data also highlighted a highly profitable trade during the rally.

Blockchain analytics platform Lookonchain revealed that a trader created a new wallet 46 days ago and used $5 million in USDC to purchase HYPE.

After holding the position for more than a month, the trader sold the entire allocation on Tuesday for approximately $7.51 million, securing a profit of around $2.51 million in just 46 days.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Manuel Aráoz, co founder of smart contract security firm OpenZeppelin, issued a stark warning on May 26, urging users to withdraw from decentralized finance platforms entirely, including the industry’s largest protocols.

According to Aráoz, the rapid advancement of AI powered coding agents has shifted the balance of power heavily in favor of attackers, making it increasingly difficult for DeFi projects to guarantee the safety of user funds.

Aráoz Says No DeFi Platform Can Be Fully Trusted

In a post shared on X, the software engineer stated:

“PSA: I now consider all of DeFi unsafe.”

He revealed that he has already advised close friends and family members to exit their DeFi positions, specifically mentioning protocols such as Aave, MakerDAO, and Compound as platforms he no longer believes are secure enough to hold funds.

Aráoz argued that security in crypto has always involved an imbalance where defenders must identify and fix every vulnerability, while attackers only need to find a single weakness to cause significant damage.

He believes AI coding agents have dramatically worsened that imbalance because they can scan smart contracts more quickly and efficiently than human security teams.

Crypto Hacks Continue to Rise

Ironically, OpenZeppelin recently reported that crypto companies lost more than $3.4 billion to hacks in 2025. However, the company noted that most of the losses were caused by compromised credentials, operational mistakes, and code changes introduced after audits rather than flaws within smart contracts themselves.

The crypto industry has faced a wave of attacks this year, with more than $650 million stolen in April alone.

Among the largest incidents were a $292 million exploit involving KelpDAO and another $285 million reportedly drained from Drift Protocol following months of alleged social engineering activity.

Industry Figures Push Back Against the Claims

Aráoz’s comments sparked immediate criticism across the crypto community.

One of the most vocal responses came from Mark Zeller, who rejected the idea that AI driven code exploits are the primary threat facing DeFi today.

Zeller argued that fewer than 10% of DeFi incidents over the past year were caused by smart contract vulnerabilities. According to him, the majority of failures resulted from poor risk management, collateral handling issues, and weak operational security practices rather than AI assisted attacks.

Others in the industry shared similar opinions.

Sam McPherson stated that the smart contracts behind major DeFi protocols are generally very secure today and suggested that operational security failures remain the biggest source of recent hacks.

Meanwhile, Polaris Finance developer Robert claimed that genuine smart contract exploits have become increasingly rare. He explained that most modern breaches involve centralized components controlled by humans instead of immutable blockchain code.

Vitalik Buterin Sees AI as a Security Advantage

Vitalik Buterin has expressed a more optimistic outlook regarding AI and crypto security.

Earlier this month, Buterin suggested that AI assisted formal verification could eventually strengthen blockchain security systems rather than weaken them.

According to him, developers could use AI tools not only to write code but also to generate mathematical proofs verifying that the code functions correctly and securely.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic