The $13 billion DeFi wipeout in two days, and it started with KelpDAO attack

📰 CoinDesk


📉 Bearish

AI Summary

A massive $13 billion has been wiped from DeFi protocols over two days following an attack on KelpDAO, with lending and yield platforms seeing their total value locked drop by double digits. While the TVL collapse is severe, token prices haven't fallen as dramatically yet.

Market Impact

This DeFi crisis could trigger broader crypto market fear and flight to quality, potentially causing short-term selling pressure on BTC as traders exit risk assets. However, BTC might also benefit as investors seek safer crypto alternatives to DeFi protocols.

💡 Trader Note: Monitor BTC's reaction at key support levels as DeFi contagion fears could either drag BTC down with the broader crypto market or create a flight-to-safety bid into the largest cryptocurrency.