JPMorgan Chase: Frequent DeFi vulnerabilities and stagnant TVL continue to weaken institutional allocation intentions.

According to Mars Finance, citing The Block, JPMorgan analysts stated that frequent DeFi security incidents and stagnant growth in Total Value Locked (TVL) denominated in ETH continue to limit institutional interest in DeFi. The report states that the recent cross-chain bridge attack related to Kelp DAO caused approximately $20 billion in DeFi TVL to evaporate within days. The attackers minted approximately $292 million worth of uncollateralized rsETH and borrowed real ETH on Aave, resulting in approximately $230 million in bad debt. JPMorgan also pointed out that after the security incident, users tended to turn to Tether's USDT for safe haven.