Total value locked across decentralized finance protocols has fallen 14% in the five weeks since the KelpDAO exploit, as the breach continues to weigh on investor confidence and risk appetite. The KelpDAO incident exposed vulnerabilities in DeFi infrastructure, triggering sustained capital outflows rather than a brief, isolated reaction. The decline suggests that users and liquidity providers are reassessing exposure to restaking and related protocols in the aftermath of the attack. TVL is a key metric for measuring capital committed to DeFi platforms, and a prolonged drop of this magnitude indicates broader sentiment deterioration beyond the directly affected protocol. The continued outflows highlight how a single high-profile exploit can reshape risk perception across the wider DeFi ecosystem for weeks or months after the initial event.
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