DeFi hacks shake institutional confidence as risks outpace yields

Repeated bridge exploits and shrinking yields are making institutions question whether DeFi’s risks still justify the returns, says Symbiotic’s Putiatin.

Security exploits are weighing on institutional appetite for decentralized finance (DeFi), even as broader crypto adoption continues through stablecoins and tokenized assets.

In an April research note, JPMorgan analysts said that bridge security remains a challenge for the industry, raising questions on whether DeFi can grow to support further institutional adoption. 

The recent exploit on the Versus-Ethereum bridge was the eighth major attack against DeFi bridges in 2026 so far, with cumulative losses totalling $328.6 million.

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