DeFi Industry Undergoes Structural Reset Amid $770M Hack Crisis

The DeFi industry has been hit hard by hacks in the first four months of 2026, with over $770 million drained from protocols. This has led to the shutdown of more than 40 protocols, a structural reset for the industry.

Unlike previous bear markets, where protocols were shut down due to fraud and leverage, the current wave is driven by economic-model failures. The 'Token-as-Revenue' model, which relied on appreciating token values to fund operations, has broken.

The shutdowns are not just a normal culling of weak protocols, but a fundamental shift in the DeFi landscape. The industry is undergoing a consolidation phase, with dominant players emerging and smaller ones shutting down.