DeFi Sector Faces Massive Withdrawals Following KelpDAO Hack

The DeFi sector is experiencing significant withdrawals following the KelpDAO hack, according to ChainCatcher. Defillama founder 0xngmi reported that the incident has triggered a wave of panic withdrawals across DeFi lending protocols, affecting even those on Solana and others not directly impacted. Aave saw a net outflow of $6.2 billion, representing a 23% decrease, while Morpho experienced a $716 million outflow, down by 9%. Sky recorded a $272 million withdrawal, a 4% reduction, and JupLend faced a $76 million outflow, marking an 8% decline. 0xngmi further noted that the total value locked (TVL) in DeFi has evaporated by nearly $10 billion as a direct consequence of the hack. He emphasized that such events result in losses for everyone involved, shrinking the overall market size and negatively impacting the entire industry.