DeFi Exploits and TVL Decline Fuel Rising Systemic Stress

April has been marked by significant DeFi exploits, with losses exceeding $600 million in just a few months.

The recent hacks have sparked a growing chorus of analysts dismissing DeFi entirely, but major traditional finance players like Morgan Stanley and JP Morgan are integrating deeper into the DeFi ecosystem.

The combination of these factors has led to a risk-off narrative gaining traction, with technical indicators pointing to a sharp contraction in on-chain capital.