JPMorgan points out security vulnerabilities and $20 billion loss risk in DeFi

JPMorgan stated that the persistent issues of DeFi hacks and capital stagnation continue to impact institutional appeal, with the KelpDAO vulnerability resulting in losses reaching 2 billion USD. Bridge and infrastructure vulnerabilities remain the main risks, with losses approaching the levels seen in 2025, undermining trust. Under pressure, investors are turning to stablecoins like USDT for safety.