DeFi TVL Plummets After KelpDAO Hack

The recent security breach of KelpDAO has had far-reaching consequences for the decentralized finance (DeFi) ecosystem. According to data from DeFiLlama, at least 126 networks have seen a decline in Total Value Locked (TVL) over the past 24 hours.

Among the top chains, Ethereum suffered a 11% dip in TVL, while Solana and other major chains like Arbitrum, Base, and Avalanche also experienced significant losses. In contrast, smaller chains such as Q Protocol posted impressive gains, with a 477% increase in TVL over the same period.

It is worth noting that the KelpDAO hack was the largest security breach in the DeFi space so far this year, with reported losses of $293 million. The attacker exploited the bridge contract, and it has been confirmed that the Lazarus Group's TraderTraitor unit was behind the attack.