The tweet was deleted by the author.
But we saved everything 🙂.
Analysts at Binance Research said a series of hacking incidents in April triggered approximately $13 billion in outflows from the decentralized finance (DeFi) sector. As a result, total value locked (TVL) declined significantly, while leverage levels across the ecosystem approached highs not seen in years.
According to Binance Research's May report, DeFi TVL fell 10.7% in April to $82.7 billion.
At the same time, analysts recorded a rise in the sector's leverage ratio to around 38%, a level last seen during the 2021 bull market.
Binance Research noted that the increase was driven not by stronger demand for borrowing, but by shrinking liquidity within the ecosystem. As TVL declined, the existing debt burden represented a larger share of the market.
Researchers added that the sector has yet to experience meaningful deleveraging despite the broader correction in crypto markets.
Attacks on Drift Protocol and KelpDAO
Binance Research counted 28 DeFi hacks in April, marking the highest monthly total on record for the industry. Combined losses exceeded $635 million.The most significant incidents involved Drift Protocol and KelpDAO, which suffered losses estimated at $285 million and $292 million, respectively.
Earlier reports suggested that the combined damage from the two attacks reached $577 million and that the incidents may have been linked to North Korea's Lazarus Group.
Binance Research emphasized that threats facing DeFi now extend well beyond smart contract vulnerabilities. Attackers are increasingly relying on social engineering, internal system compromises, governance exploits, and weaknesses in cross-chain bridges.
Market impact of the attacks
One of the most notable consequences of the April incidents was the effect on related protocols. According to Binance Research, the KelpDAO exploit resulted in roughly $230 million in bad debt on Aave and cut the protocol's TVL by about half.Although losses from attacks declined by nearly 90% in May compared with April, risks to the sector remain elevated. Analysts highlighted recent exploits involving Humanity Protocol, Aztec Connect, and Raydium.
Researchers believe the market remains vulnerable due to a combination of elevated leverage and reduced liquidity. This creates additional risks for DeFi protocols even after the largest wave of attacks has subsided.
Earlier, Balancer Labs announced that it would shut down operations. The team cited declining liquidity, rising operating costs, and the aftermath of a major exploit that affected the Balancer protocol in 2025.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Subscribe to TU news
Did you like the article?
Latest Binance News
Weekly Top Bonuses
Top News
Top 5 companies for you
United States
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
