DeFi TVL Drops 39% in 2026 as Hacks Surge

DeFi total value locked fell about 39% in 2026, declining to just over $70 billion from roughly $115 billion in January, according to CryptoRank. The data provider attributed the decline to a market correction after Bitcoin reached a record above $122,000 and a liquidation event on Oct. 10, 2025 that erased more than $19 billion in leveraged positions.

The drawdown continued through the first half of 2026 as capital in DeFi fell from about $115 billion at the start of the year to just over $70 billion.

CryptoRank reported 121 hacks year-to-date, with protocols losing about $942 million. The second quarter of 2026 recorded 83 exploits and $755 million stolen, the highest quarterly incident count on record. By contrast, $3.56 billion was stolen in the fourth quarter of 2020.

A Kelp DAO exploit on April 18 resulted in losses of about $293 million and accelerated outflows. Nicolai Søndergaard, senior research analyst at Nansen, estimated the incident compressed weeks of withdrawals into days. Data show Aave users withdrew about $15 billion in the four days following the exploit.

Dmytro Matviiv, CEO of HackenProof, called the lower aggregate losses “misread as progress” and argued that only leading protocols have become harder to exploit, prompting attackers to target a wider set of projects.

Alvin Kan, chief operating officer at Bitget Wallet, noted exploits are making users more cautious and may shift capital from weaker protocols to those seen as having stronger security and clearer yield models.

CryptoRank added that the current drawdown is substantially smaller than the 2021–2022 bear market.