JPMorgan says DeFi exploits and stagnant TVL continue to limit institutional appeal
The Block
JPMorgan analysts report that ongoing DeFi security breaches and flat growth in total value locked are discouraging institutional investment in the sector.Summary
JPMorgan analysts argue that persistent security vulnerabilities in decentralized finance, including a major recent exploit involving Kelp DAO, hinder institutional adoption. The report highlights that while crypto hacks remain frequent, the lack of organic growth in TVL, when measured in ETH, raises concerns about DeFi's long-term viability. Consequently, investors are increasingly moving toward stablecoins like USDT as a flight-to-safety measure during periods of market instability.
(Source：The Block)