BroadChain News, April 24, 00:30, April 23, according to The Block, a recent JPMorgan report indicates that recent DeFi security incidents (such as the Kelp DAO attack) and the prolonged stagnation of Ethereum TVL continue to limit institutional interest in DeFi.
The report states that in the cross-chain bridge attack related to Kelp DAO, hackers minted approximately 292 million rsETH out of thin air and used it as collateral on Aave to borrow real ETH, resulting in about $230 million in bad debt and triggering outflows from unrelated asset pools, exposing the vulnerability of DeFi's high interconnectivity. Analysis shows that the scale of crypto hacks this year is comparable to 2025, with bridge security remaining a weak link.
During risk events, funds tend to withdraw from DeFi and shift to Tether USDT, which offers deeper liquidity and more direct redemption paths, forming a "risk-off" pattern. However, this advantage has not yet been significantly reflected in the growth of USDT's market cap. JPMorgan concluded that ongoing security vulnerabilities and stagnant TVL collectively dampen DeFi's institutional appeal.