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DeFi sector suffers major confidence blow as Aave TVL drops 44% after $292M KelpDAO hack

Protocol Fundamentals
17 May 2026
Bitcoin
View Source
Bearish
pluang ai news

Following the $292 million KelpDAO exploit in April 2026, the decentralized finance (DeFi) sector has faced significant setbacks, with Aave's total value locked (TVL) plunging 44% from $26.6 billion to about $14.8 billion. This decline reflects a broader loss of confidence, as 31 of the top 50 DeFi protocols experienced TVL losses over the past month. Lido remains the largest DeFi protocol despite a 13.36% drop, holding $19.3 billion in TVL. The incident highlights the fragility of DeFi platforms and may prompt increased caution among investors moving forward.

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