DeFi has lost over $600 million in the past three weeks, with the Kelp DAO incident dragging DeFi TVL down to a one-year low.

CoinFeed reported on April 21 that, according to The Block, multiple DeFi security incidents in the past three weeks have resulted in losses exceeding $600 million for the industry. The Kelp DAO vulnerability incident (which resulted in a $292 million loss) further exacerbated the downturn, causing DeFi TVL to drop to approximately $82.4 billion, the lowest level in a year and a 25% decrease from $110 billion at the beginning of 2026. The day after the $292 million attack on Kelp DAO, DeFi experienced a single-day drawdown of approximately 5.6%; the losses were most pronounced in the lending market, where TVL decreased by approximately 13%, while liquidity staking decreased by approximately 3.4%. Decentralized exchanges and derivatives protocols also saw declines of 2% to 3%. Aave has frozen rsETH to limit risk exposure, leading to a liquidity shortage in some stablecoin markets and locking up billions of dollars in deposits.